Red Door Real Estate, LLC v. Karwashan, et al. (Lawyers Weekly No. 12-146-16)

1 COMMONWEALTH OF MASSACHUSETTS SUFFOLK, ss. SUPERIOR COURT CIVIL ACTION No. 14-03235-BLS 2 RED DOOR REAL ESTATE, LLC, Plaintiffs vs. SOUSAN KARWASHAN, RED DOOR PROPERTIES, INC., and RED REAL ESTATE, INC. Defendants FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER OF JUDGMENT In this action, plaintiff Red Door Real Estate, LLC (Red Door) alleges that the defendants have infringed upon its state service mark and otherwise engaged in unfair business practices. The five count Amended Complaint seeks damages as well as injunctive relief. The matter came before this Court for jury waived trial in August 2016. Based on that evidence this Court finds to be credible together with reasonable inferences drawn therefrom, I makes the following findings and rulings. FINDINGS OF FACT Plaintiff Red Door is a limited liability company that has its principal place of business in Quincy, Massachusetts. It was founded by Madeline Cheney in January 2010. Red Door is a real estate brokerage firm that represents buyers and sellers in commercial and residential real estate transactions. In addition to Cheney, it employs between 12 and 17 other brokers. The focus of Red Door’s business is in the South Shore, with most of its residential sales occurring in Quincy and its environs. Its total sales volume in 2015 was $ 23 million. 2 In July 2010, Red Door applied for and obtained state registration of a service mark.1 Cheney, who holds a bachelor’s degree in marketing, was the person who designed the logo that was part of that mark. The logo consists of black and red writing with the word “Red Door” appearing in block letters above the word “Real Estate” written in cursive. An angular drawing suggesting a roof and a door is positioned above the word “Red” in the logo. The registration for this service mark was renewed in 2015. It appears on all of Red Door’s marketing and advertising materials. It is also used on its internet site and on each broker’s business card. Shortly after Red Door opened its business, Cheney learned that there was another real estate agency located in Milton by the name of Red Door Realty. Cheney did not disclose this on her application for a service mark, even though the application expressly sought such information. In any event, the owner of Red Door Realty did not object to Cheney’s use of the Red Door title. In fact, the two companies have actually been co-brokers on one deal. There was no evidence presented at trial that there was any confusion among customers of either firm as a result of the name similarity even though they are both in the same line of business and operate in adjoining communities. That there has […]

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