Travel Gig, LLC v. Sharing Services Global Corporation

CourtDistrict Court, D. Montana
DecidedDecember 8, 2022
Docket9:22-cv-00146
StatusUnknown

This text of Travel Gig, LLC v. Sharing Services Global Corporation (Travel Gig, LLC v. Sharing Services Global Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Travel Gig, LLC v. Sharing Services Global Corporation, (D. Mont. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MONTANA MISSOULA DIVISION

TRAVEL GIG, LLC and CV 22-146-M-DWM HAPPITRAVEL, LLC, Plaintiffs, OPINION VS. and ORDER SHARING SERVICES GLOBAL CORPORATION, SHRG IP HOLDINGS, LLC, GLOBAL TRAVEL DESTINATIONS, LLC, and JOHN DOES 1-15, Defendants.

Plaintiffs Travel Gig, LLC (“Travel Gig”) and HappiTravel, LLC (“HappiTravel”) (collectively “Plaintiffs”) sued Defendants Sharing Services Global Corporation (“Sharing Services”), SHRG IP Holdings, LLC,! and Global Travel Destinations, LLC (collectively “Defendants”) seeking injunctive relief,

The caption incorrectly lists this party as “SHRG IP HOLDING, LLC”—the correct entity name is “SHRG IP HOLDINGS, LLC.” The caption will be updated to reflect this correction.

damages, and disgorgement based on Defendants’ alleged infringement of Plaintiffs’ trademarks. See 15 U.S.C. § 1114. On October 5, 2022, Plaintiffs moved for a preliminary injunction to enjoin Defendants from using the words and phrases: (1) “Happi Travel,” “Hapi Travel,” “Happy Travel,” or “Hapy Travel,” and (2) “Be Happy. Travel.” Or “Travel. Be Happy.” (Doc. 10 at 3.) A hearing was held on December 2, 2022. (See Doc. 40.) Michael O’Brien and Sarah Rhoades appeared for Plaintiffs; Blake Dietrich and Stephen Bell appeared for Defendants. Plaintiffs called three witnesses: Michael Darling (Plaintiffs’ Chief Technology Officer and principal), Camaron Corr (Plaintiffs’ other principle), and Dr. Jakki Mohr (Regents Professor of Marketing at the University of Montana). Defendants did not call any witnesses. After the hearing, the Court indicated that it was likely to issue an injunction but required further input on its scope. (Doc. 41.) The parties were therefore directed to file proposed language outlining their suggested scope for injunctive relief. (Id.) After that order was issued but prior to any final decision on Plaintiffs’ motion, Defendants filed a Motion for Leave to File a Motion for Reconsideration under District of Montana Local Rule 7.3(a). (Doc. 48.) Because there was no

interlocutory order to reconsider as of December 5, 2022, when Defendants filed their motion, their request is denied as premature.” Ultimately, for the reasons outlined below, Plaintiffs’ motion for preliminary injunctive relief, (Doc. 10), is granted in part and denied in part. BACKGROUND I. The Trademarks and Businesses Plaintiff HappiTravel sells discount travel services online. They market their business primarily through their “affiliate” program. Affiliates are independent contractors employed by Travel Gig who refer potential customers to HappiTravel and receive a kickback if those potential customers purchase services. Darling described this marketing model as an innovative take on the direct sales model. Importantly, Darling was adamant that Plaintiffs’ direct sales marketing model is not a form of multi-level marketing, but when pressed by Defendants’ counsel, he was not entirely able to explain the difference between the two. Plaintiffs own two relevant registered trademarks: (1) “BE HAPPY. TRAVEL.” (Reg. No. 6,171,337) in International Class 39 (travel agency services), (Doc. 40-2

2 Defendants’ motion would also be denied on the merits. A motion for leave must demonstrate either that: (1) the facts and law are materially different from those before the Court before entry of the order and “the party applying for reconsideration did not know such facts or law before entry of the order” or (2) “new material facts arose or a change of the law occurred after the entry of the order.” L.R. 7.3(b). Defendants have not demonstrated either.

at 1), and (2) “HAPPITRAVEL” (Reg. No. 6,627,973) in International Class 35 (travel membership club services), (Doc, 40-3 at 1). Both trademarks note that “the mark consists of standard characters without claim to any particular font style, size or color.” (Docs. 40-2, 40-3.) Hapi Travel Destinations also sells discount travel services online. As a subsidiary brand of Defendant Sharing Services, they market their business primarily through a multi-level marketing structure, which, while distinct from Plaintiffs’ marketing structure in name, appears substantially similar in practice. Sharing Services, through its various subsidiaries, have been selling “health products” including nootropic supplements and foods for around 10 years. Defendants own many trademarks relating to those business activities. Many of these trademarks include the word “HAPI” or “HAPPY”—they have been using this theme to sell these health products and services since around 2016. In March 2021, Defendant Sharing Services Global Corporation announced the launch of Hapi Travel Destinations, (Doc. 26-3 at 1), and filed a trademark application with the United States Patent and Trademark Office for “HAPI TRAVEL DESTINATIONS” (Serial No. 90681135) on April 29, 2021, (Doc. 26-7 at 1). Notably, that trademark registration application was denied by the United States Patent and Trademark Office on September 23, 2021 because it was confusingly

similar to the trademark “HAPPY TRAVELS,” held by an unrelated entity with the

same name doing business in New Hampshire. (Doc. 40-14 at 4.) The parties, albeit under different names, have had extensive prior dealings. Although the parties now present slightly different accounts of this history, what

seems clear is that Darling and his business partner Camaron Corr worked with Defendants on a business venture that soured. (See Doc. 26 at 14.) At the end of their business dealings, litigation and settlement ensued. As a result, Defendants paid Darling and Corr $425,000 and returned their ownership stake in Darling’s and Corr’s business, in exchange for the return of 5,628,750 shares of SHRG stock. (Doc. 12-1 at 2-3.) Il. This Case On September 7, 2022, Plaintiffs filed their original complaint, alleging six

causes of action arising out of Defendants’ misuse of Plaintiffs’ two registered trademarks, “HAPPITRA VEL” and “BE HAPPY. TRAVEL.” (See Doc. 1.) On November 4, 2022, Plaintiffs filed their First Amended Complaint, now alleging the following ten’ causes of action: Count I, trademark infringement under 15 U.S.C. § 1114 of “HAPPITRAVEL” mark; Count II, trademark infringement under 15 U.S.C. § 1114 of “BE HAPPY. TRAVEL.” mark; Count III, trademark infringement under 15 U.S.C. § 1125 and Montana Common Law of unregistered

3 Plaintiffs include two counts labelled “Count X” and skip “Count IV.”

marks; Count V, likelihood of confusion; Count VI, violation of the Montana Uniform Trade Secrets Act; Count VII, violation of the Defend Trade Secrets Act, 18 U.S.C. § 1836, 1839; Count VIII, punitive damages under Mont. Code Ann. § 27-1-221; Count IX, Common Law Unfair Competition and Trademark Infringement; Count X, Unfair Trade Practices Act; and Count X[I], Tortious Interference with Prospective Economic Gain. (Doc. 27.) ANALYSIS According to Plaintiffs, they are entitled to injunctive relief because Defendants are infringing on the use of their valid trademarks. Defendants counter that they have actually been using the marks for longer and are not doing any such infringement. Plaintiffs have the better argument at this stage. I.

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Travel Gig, LLC v. Sharing Services Global Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/travel-gig-llc-v-sharing-services-global-corporation-mtd-2022.