Trademark Dispute Ends Up In Partnership Between Parties, Rather Than A Fight
Usually when we're talking about a trademark dispute, never mind a lawsuit, there is some level of anger, frustration, or animosity between the two parties. The reason for that is pretty obvious: nothing puts you on negative footing towards another quite like getting sued or getting threatened with a lawsuit. But, and I cannot stress this enough, it does not have to be that way. If more people and organizations out there could prioritize being human and awesome towards one another, they might just find new opportunities to engage in, rather than being in a fight to the intellectual property death.
Serving as an example of that is a trademark dispute between two parties where there appears to have been some legitimate trademark concerns. Carolwood Estates began life recently as a residental real estate brokerage and was immediately sued for trademark infringement by Carolwood Capital Partners LLC, a company that provides real estate investment services. While the services offered by the entities are somewhat distinct, they sit in close enough company with one another that the suit didn't appear to be silly. And, while this had the hallmarks of a prolonged trademark dispute that would end with one side or the other losing out and being pissed off, this one ended rather differently.
In an unusual legal move, Carolwood Estates - the independent luxury residential brokerage - put aside its disagreements in atrademark disputewith the commercial investment firm Carolwood LP, and the two companies will develop joint ventures in real estate,The Real Dealhas learned.
The former adversaries will unveil the new venture Carolwood Commercial on Nov. 10, said Nick Segal, managing broker at Carolwood Estates. The boutique commercial brokerage will handle retail, restaurant, office and industrial. Its offices will be located on the third floor of the building where Carolwood Estates is headquartered at 9440 South Santa Monica Boulevard in Beverly Hills.
You read that right. Two sides in a trademark dispute settled the dispute in a way that is not entirely behind closed doors, as is typical, but actually announced a partnership and joint venture. Both entities will also retain their original names outside of the joint venture, though some ownership shares of Carolwood Estates will now be held by Carolwood LP. And the new venture will allow both to work together on business opportunities neither was previously capable of engaging in.
How does something like this happen? Conversation. Humanity. Trust. Not digging in your heels just because you think someone stole" your name or idea.
Segal said the idea of joining forces was broached during settlement talks in June. He and Fenton said they often had been approached with commercial projects, but they did not have a commercial division to work on the deals. Likewise, commercial clients often asked Rubin and his business partner Andrew Shanfeld for guidance on residential projects, and Rubin and Shanfeld referred the business out.
I wasn't looking for money," Rubin said, referring to the trademark dispute. But the name is important to us. Andrew and I worked relentlessly over the last 10 years to build our various businesses. However, Carolwood Estates had a great value proposition and an amazing team. We were once fighting over a name. Now we are partners. We definitely did not expect this outcome. Andrew and I wouldn't have agreed to the settlement if it was someone other than Nick and Drew. They're the best in the business as far as we're concerned. We're really looking forward to furthering a great business with them."
This sort of thing isn't possible in every trademark dispute, of course. But there's a lesson to be learned here, which is that behaving as draconian and aggressively as possible can often times preclude one or both parties from uncovering a solution that is far more beneficial than duking it out in court.
That is certainly a lesson for the wider trademark-holding public to pay attention to.