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Real Estate News and Advice |
November 21, 2008 |
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Principals Comment On Cendant Brands/LendingTree Trademark Case
by Blanche Evans
LendingTree's troubles with trademark infringement lawsuits may be far from over. The company says it is considering an appeal, but other disputes continue to loom. LendingTree had been sued collectively by the Cendant residential real estate brands, ERA Franchise Systems, Inc., Century21 Real Estate Corporation and Coldwell Banker Real Estate Corporation for trademark infringement. They won a preliminary injunction from the United States District Court for the District of New Jersey against Lending Tree, Inc. which means that LendingTree must comply with certain actions dictated by the court. The injunction, filed November 6th, 2003, enjoins and restrains LendingTree Inc. from using the brands' trademarks/servicemarks in a way that might confuse consumers that the brands endorse LendingTree or its real estate services. In a prepared statement, LendingTree said, "The court has upheld Cendant's request for a preliminary injunction preventing LendingTree from using the Cendant corporate names in our advertising and on our Web site pending the final outcome of the ongoing litigation. "While LendingTree disputes that any of its advertising misuses Cendant's corporate names in any way, we are nonetheless prepared to comply fully and promptly with the court's order. We feel that the information listed was used with the intent to better educate LendingTree consumers about the choice of real estate companies on the LendingTree network, which includes participating brokers from Cendant companies. "It should be emphasized that this is a preliminary ruling only. LendingTree is considering an appeal of the Court's preliminary ruling, and we will continue to vigorously defend this litigation. LendingTree strongly believes that it ultimately will prevail once the Court is presented with the full evidentiary record. This injunction will not impact the way in which LendingTree does business. "LendingTree enjoys an enormous national brand awareness of 73% and has never relied on the presence of Cendant corporate names, or any other franchise or independent brand names, on our site or in our advertising material to generate consumer awareness of our REALTOR® Matching Service. "The court's preliminary ruling has also clarified to the Cendant-franchised brokers who are members of our service an important point -- they can continue to advertise on LendingTree using their individual franchise names, which include the various Cendant franchise logos." A similar suit against LendingTree is pending which was filed by RE/MAX International. RE/MAX International spokesperson declined comment. LendingTree declined to comment on the suit. While a lawsuit hasn't been filed, discussions are underway between the National Association of Realtors and LendingTree regarding the use of the REALTOR® brand in its advertising of a REALTOR® Matching Service. According to NAR spokespersons, the National Association of Realtors had given LendingTree permission to use the brand, but has since tried to rescind permission when the organization belatedly learned that LendingTree was using the REALTOR® brand for its own commercial gain. "The court's ruling is certainly helpful to NAR and does not support Lending Tree's position," says Laurie Janick, general counsel to the NAR. "In particular, I am looking at the language in the order that says Lending Tree is enjoined from '(iii) using Plaintiffs' Marks in connection with any word or statement that implies that Plaintiffs represent or are affiliated or aligned with LendingTree.'" She says, "My concern is that LendingTree's use of the mark REALTOR implies some relationship exists between NAR and LendingTree, which is false." LendingTree is also indirectly involved in a lawsuit between The Real Estate Book and 1Roof Technologies, a company with a relationship to Primedia. According to those concerned, Primedia subsidiary Realestate.com engaged 1Roof Technologies to supply listings which it could then resell or otherwise provide to portals such as MSN and LendingTree. Another Primedia subsidiary, HPC Interactive, allegedly took the Real Estate Book's listings, stripped the listing agent's contact information and The Real Estate Book's copyright, and inserted a copyright by HPC Interactive instead. The listings then appeared on LendingTree and Realestate.com and were discovered by a listing agent customer of The Real Estate Book's who contacted the company. The Real Estate Book alleges that 1Roof had no authorization to sell or give The Real Estate Book's listings to anyone, and filed a lawsuit against 1Roof Technologies. The Real Estate Book told Realty Times its intention is to obtain depositions from all parties involved including LendingTree to ascertain what really happened. Spokespersons for The Real Estate Book and LendingTree have declined comment regarding the progress of the suit and depositions. Published: November 18, 2003 Use of this article without permission is a violation of federal copyright laws. Related Articles:
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