Patrón sues ad agency over ‘trademark violation’By Annie Hayes
Patrón Spirits International (PSI) has sued its former advertising agency, stating that by continuing to list the brand as a client on its website the company is “violating trademark law”.
Despite the “unequivocal termination” of their agreement more than two years ago, Reindeer continues to feature the company’s logo on its website, reported Law360.
The site currently states that Reindeer is “agency of record for all digital creative, social and media planning for The Patrón Spirits Company across the United States and United Kingdom.”
According to the suit as reported by Law360, PSI alleges that the information “falsely suggests a connection between the two brands, which allows Reindeer to reap the benefits of the highly valuable Patrón name and all of the associated goodwill, but without PSI’s permission” – adding that the “false advertising has harmed and continues to harm PSI”.
The suit is said to be rooted in a billing dispute between the firms, according to Law360, in which Patron claims the agency “padded” its invoice with tens of thousands in charges that the company didn’t authorise, and overcharged for social media buys by US$81,000.
In addition, the lawsuit also reportedly claims that Reindeer is committing “cybersquatting” by holding www.patroncocktaillab.com – a web address which should have been transferred back to Patron at the end of the contract.