New Golf Courses…. Take More Care in Selecting Your Names; It Will Save A Ton of Money in the Long Run!
Golf course developers, please…. please…. take a lesson from almost every other industry in existence. Don’t select a name for a golf course unless you are sure that it can be protected (i.e. obtain federal trademark registration) and enforced to prevent others from using the name. Click HERE to read a post titled “Choosing a Golf Product Name or Golf Course Name: A Couple of Important Trademark Considerations.”
Why do I make this plea? I see too many avoidable disputes between golf course developers and adjacent real estate developers or agents.
The latest dispute involves the Arnold Palmer designed Tradition Golf Club in La Quinta, California. Looks like a nice course (as it should for a $175k initiation fee). Last month the dispute escalated when Tradition Club Associates, LLC sued Tradition Golf Club Sales for false designation of origin; unfair competition under California Business & Professions Code section 17200 et seq. and common law; and common-law passing off.
So what happened? The following is a selective summary from the www.traditiongolfclub.net. This website provides information about the Club and information about the real estate surrounding the Club. It lists all available home sites and homes currently listed with DCI. Attached as Exhibit B is a copy of a web site printout showing available home sites listed with DCI. Attached as Exhibit C is a copy of a web site printout showing available homes listed with DCI.
17. DCI also markets real estate through direct correspondence with interested buyers, including the mailing of marketing materials in interstate commerce. These marketing materials display the TRADITION and TRADITION GOLF CLUB trade name. Attached as Exhibits D-F are copies of Tradition marketing materials and print collateral.
18. Tradition is informed and believes, and on that basis alleges, that Sales is a business entity established by Jeff Larson.
19. Tradition is informed and believes, and on that basis alleges, that Sales has commenced marketing and selling real estate within the Tradition community and is presently using Tradition’s trade name TRADITION GOLF CLUB in its advertising. Attached as Exhibits I and J are printouts showing at least one home that is available for sale at the Tradition complex and has listed with “Tradition Golf Club Sales,” the Defendant herein.
20. Tradition is informed and believes, and on that basis alleges, that Sales is presently in the process of expanding its operations by opening an office and expanding its listings. Employees of DCI have left the company to commence working at Sales.
21. As a result of using Tradition’s trade names, TRADITION and/or TRADITION GOLF CLUB, within its own name, TRADITION GOLF CLUB SALES, Sales is causing or is likely to cause confusion in the marketplace, damaging the business reputation of Tradition and DCI.
22. For example, third party real estate agents have already commenced asking employees of DCI what relationship exists between Tradition and Sales and whether Jeff Larson is now an employee of DCI.
23. In addition, Tradition Golf Club members have asked DCI employees why Tradition/DCI is opening a second real estate office (when referring to Sales’ new office).
24. Defendants’ use of the trade names, TRADITION and/or TRADITION GOLF CLUB, in connection with real estate sales in the United States constitutes use of the marks in interstate commerce and/or will affect interstate commerce.
25. Defendants’ use of the trade names, TRADITION and/or TRADITION GOLF CLUB, is likely to cause confusion or mistake and/or to likely deceive customers and potential customers of the parties, as to some affiliation, connection or association of Sales with Tradition or as to the origin, sponsorship, or approval of Sales and its related products and services.
26. Defendants’ use of the TRADITION and/or TRADITION GOLF CLUB trade names falsely designates the origin of Defendants’ products and services and falsely and misleadingly describes and represents facts with respect to Defendants and their products and services.
27. Defendants’ use of the TRADITION and/or TRADITION GOLF CLUB trade names enables Defendants to trade upon and receive the benefit of Tradition’s goodwill built up at great labor and expense over many years and to gain acceptance of Defendants’ products and services not solely on their own merits but on the reputation and goodwill of Tradition, its marks and brand, and its products and services.
28. Defendants’ use of the TRADITION and/or TRADITION GOLF CLUB trade names has injured and is likely to continue to injure Tradition’s business reputation.
29. Defendants’ use of the TRADITION and/or TRADITION GOLF CLUB trade names has allowed them to pass off their products and services as those of Tradition, thereby deceiving consumers across California and the rest of the United States.
30. Unless Defendants’ acts are restrained by this Court, they will continue, and they will continue to cause irreparable injury to Tradition and to the public for which there is no adequate remedy at law.
Unfortunately, this type of scenario is more common than one would think. In fact, a previous post (HERE) discussed a somewhat similar situation involving the Wolf Creek Golf Club in Mesquite Nevada.
Here are a few tips that should get those lucky few individuals involved in naming golf courses into the right frame of mind.
1. Don’t name a course after the city that it is loc
ated in! Sure, I know…. Augusta National makes millions in licensing revenue associated with its trademark portfolio (see prior post HERE); but they had decades to become famous, and a little help from somewhat well know golf tournament. Think about it, how would the members of Augusta National have liked it if a few years after the course opened a competitor opened a course across town called Augusta West?2. Don’t name a course after the local river, bay, valley, etc. Yes, that means actually coming up with a name original to golf courses! Don’t be lazy and pick the logical easy geographically descriptive name. I promise to do a follow-up post on the most original trademark applications directed to golf course names.
3. Spend a few grand to properly clear and protect the course name (and not just related to golf courses)!. Think about housing development services, land development services, real estate sales services, entertainment services (i.e. golf tournaments), resort services, lodging services, social club services, dining and restaurant services, and on, and on….. It will be less than what is spent on the front door of the new club house!
David Dawsey – Monitoring Golf Course Legal Issues
PS – Click HERE to check out a post on cool golf course logos/trademarks
PPS – click HERE to read about additional posts regarding golf industry trademark issues