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Disagreement between Nightclub Owners ELEVATEs into Bi-Coastal Infringement Action.

NEW HAVEN, May 29, 2009 -- A California night club owner brought a trademark infringement action today in the U.S. District Court for the District of Connecticut against a number of Connecticut defendants for using the trademark ELEVATE unlawfully.

The complaint filed by Downtown Entertainment Group, Inc. ("DEG") names Elm City Entertainment, Inc., Robert LaFrance, Rommerro Farrah and Albert Farrah as defendants.

Records maintained by the United State Patent & Trademark Office (USPTO) indicate that DEG registered the trademark ELEVATE in connection with nightclub services in October 16, 2008.

By operating a nightclub and website using "Elevate", DEG argues that the defendants are guilty of trademark infringement, unfair competition and cybersquatting.

The primary purpose of trademark infringement laws is to prevent consumer confusion regarding the source of goods and services. The first party to use a trademark may prohibit other parties from using a mark subsequently on connection with similar goods or services if it so resembles the original mark as to cause confusion. If the later mark is so similar, it is deemed to infringe on the prior mark.

In assessing damages of a federally registered trademark, the court may enter judgment for any sum above the amount found as actual damages, up to three times. When a court finds a defendant intentionally counterfeited a registered trademark, the court must, unless the court finds extenuating circumstances, enter judgment for three times such profits or damages, whichever is greater, together with a reasonable attorney’s fee unless the Plaintiff elects for statutory damages up to $1,000,000 per counterfeit mark per type of goods or services sold, offered for sale, or distributed.

Cybersquatting is prohibited under the Anticybersquatting Consumer Protection Act. Cybersquatting involves registering, trafficking in, or using a domain name with bad faith intent to profit from a trademark belonging to someone else. The maximum allowable damages under U.S. law for cybersquatting is $100,000.