RE/MAX scored a major legal victory earlier this fall when a federal judge ruled against an independent Texas brokerage for using red-over-white-over-blue yard signs that look too much like the trademarked RE/MAX design.
The decision resolved the biggest question in a two-year trademark suit brought by RE/MAX International against Trend Setter Realty, a 700-agent brokerage in Houston and San Antonio. The court held that Trend Setter’s sign is trademark infringement under both federal and Texas law.
“In addition to the victory in this case, the judge’s ruling will serve as a very important precedent for us to use against future infringements of our red-over-white-over-blue bar design,” says RE/MAX Senior Vice President and Chief Legal Officer Geoff Lewis. “We made many attempts to get Trend Setter to settle with us and to change their sign before the case proceeded too far, but they refused.”
As part of its argument on the trademark issue, RE/MAX International commissioned a consumer survey to determine if the Trend Setter sign was confusing to the public. Some 225 adults were shown a photo of a Trend Setter sign and then asked whose sign it was, or who the company was affiliated with. More than a quarter of the participants associated the sign with RE/MAX.
In its ruling, the court quoted several survey respondents who, when asked why the tied the sign to RE/MAX, said, “Because it’s their sign; they are the only ones that I know of that have this color of sign,” and “It looks exactly like a RE/MAX sign.” This occurred despite the fact that Trend Setter’s sign contains no balloon and has a white bar modified into the shape of a roofline.
“This is more than just a victory for our brand,” said RE/MAX of Texas CEO Richard Filip. “This is a validation of the years of quality service, professionalism and integrity that RE/MAX agents have worked hard to provide to clients worldwide. The brand represents every RE/MAX agent and their efforts. They are the ones who built it into the powerful symbol it is today.”
The court rejected claims that the RE/MAX bar design is generic. It also cited the network’s diligence in policing its marks, noting that strict enforcement of Trademark & Graphic Standards significantly strengthens RE/MAX ownership of its brand and marks.
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