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Maryland's TEKsystems, Inc. Brings Action Against Michigan's iTEK Systems, Inc.

DETROIT, April 20, 2009 -- Information technology consulting and staffing firm TEKsystems, Inc. has filed suit in the U.S. District Court for the Eastern District of Michigan against competitors iTEK Systems, Inc. for trademark infringement.

The complaint filed on behalf of TEKsystems, Inc. states their primary business is "computer systems management consultation for the information technology and communications industries and counseling, recruiting, and temporary and permanent staffing services in the field of information technology and communications."

According to the records of the United States Patent & Trademark Office (USPTO), TEKsystems, Inc. registered TEK in connection with computer and information technology services with a date of first use of September, 1997. TEKsystems, Inc. has also registered TEKSYSTEMS and TEK SYSTEMS in connection with temporary and permanent staffing services with dates of first use of September, 1997 and November, 2001 respectively.

Michigan Department of Energy, Labor & Economic Growth records indicate iTEK Systems, Inc. was incorporated on September 24, 2007.

Generally speaking, the first party to use a trademark has the superior claim of ownership, with trademark registration providing substantial benefits to the owner such as the ability to recovery attorneys fees, constructive notice, etc.

The pleading as filed accuses the Michigan staffing company of intentionally and deliberately using a service mark nearly identical to TEKsystems' marks for the purpose of exploiting and trading upon the substantial goodwill and reputation of TEKsystems in an attempt to confuse consumers.

In December 2008, the U.S. District Court for the District of Nevada ruled on summary judgement on remand that the marks VISA and EVISA were substantially the same mark and likely to confuse consumers about the source of travel related services. The court in this case reasoned the addition of the letter "e" was commonly used as a prefix to denote the online counterpart of a business.

Because the trademarks in dispute are federally registered, TEKsystems, Inc. could recover defendants' profits and any damages sustained by the plaintiff. In assessing damages 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.