The Cendant residential real estate brands, ERA Franchise Systems, Inc., Century21 Real Estate Corporation and Coldwell Banker Real Estate Corporation, have won a preliminary injunction from the United States District Court for the District of New Jersey against Lending Tree, Inc. 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.

The Order to Show Cause was filed by the Cendant brands' attorneys around June 12, 2003, seeking entry of a preliminary injunction against LendingTree, the defendant in the Cendant brands' lawsuit for trademark infringement.

The court enjoined LendingTree and its officers, agents, servants, employees, and attorneys and others from "using Plaintiffs' Marks in connection with the word 'affiliated,' 'aligned,' or 'represented' in connection with any description of its relationship with Plaintiffs; using Plaintiffs' Marks in connection with any word or statement that expressly states or implies that Plaintiffs endorse LendingTree or LendingTree's services; using Plaintiffs' Marks in connection with any word or statement that implies that Plaintiffs' represent or are affiliated or aligned with LendingTree; and using Plaintiffs' Marks in connection with the statement that "LendingTree(r) now seamlessly offers both mortgage and real estate services to customers through our national network of real estate professionals."

The injunction encompasses all media, noted the court. In addition, LendingTree is now required to provide a copy of the Court's order to any third parties with whom it has a marketing relationship that involves the distribution of any enjoined materials, notes a Cendant press release.

The court order did not restrain LendingTree from using Cendant brands servicemarks in association with Plaintiffs' franchisees "who chose to participate in the realty services offered by LendingTree."

Cendant brand and LendingTree spokespersons could not be reached for comment, but a preliminary injunction could be considered favorable to Cendant as it could indicate the direction the court might take toward a final ruling.

LendingTree is also being sued by RE/MAX International, Inc. for trademark infringement, but spokespersons were unavailable for comment.

The National Association of Realtors is in discussions with LendingTree about its use of the Realtor servicemark, according to Laurie Janik, general counsel. "A judge won't issue an injunction unless she believes the party has a likelihood of success on the merits," comments Janik. "I believe this ruling reinforces NAR's argument with respect to Lending Tree's unauthorized display of the term REALTOR."

LendingTree is also involved in a scandal involving The Real Estate Book, in which LendingTree was the alleged recipient of stolen listings that The Real Estate Book says it didn't authorize LendingTree or others to have. The listings were allegedly taken without authorization by a Primedia associate called 1RoofTechnologies and given to Primedia subsidiary Realestate.com which in turn stripped the listings of the Real Estate Book's copyright and listing agent information, alleges the Real Estate Book.

The outcome of the other suits are pending.

LendingTree must comply within five days of the court order and supply the court an affidavit within 10 days of the steps the company took to comply with the court order.

Published: November 17, 2003

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