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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 RUSING LOPEZ & LIZARDI, P.L.L.C. 16427 N. Scottsdale Ro Case 2:21-cv-00786-ESW Document 1 Filed 05/03/21 Page 1 of 31 1 RUSING LOPEZ & LIZARDI, P.L.L.C. 16427 N. Scottsdale Road, Suite 200 2 Scottsdale, AZ 85254 (602) 492-9456 3 Isaac S. Crum – AZ Bar no. 026510 4 MCDONALD HOPKINS LLC 300 N. LaSalle Street, Suite 1400 5 Chicago, IL 60654 (312) 642-1480 6 James P. Muraff – IL Bar no. 6225693 Stephen J. Rosenfeld – IL Bar no. 6216769 7 Attorneys for Plaintiff 8 IN THE UNITED STATES DISTRICT COURT 9 FOR THE DISTRICT OF ARIZONA 10 SBS Consulting Group, LLC, an Arizona limited liability company, 11 Plaintiff, No. 12 vs. COMPLAINT 13 Alpha Exploration Co. (a/k/a Trial By Jury Demanded 14 “Clubhouse”), a Delaware company, 15 Defendant. 16 SBS Consulting Group, LLC (“SBS”), for its claims against defendant, states and 17 alleges as follows: 18 Nature and Basis for Action 19 1. This is an action for (I) infringement of U.S. Service Mark Registration No. 20 5,943,043 (“Registration” or “registered service mark”), under the laws of the United 21 States, as provided under Title 15, United States Code, Section 1114; (II) unfair 22 competition, under the laws of the United States, as provided under Title 15, United States 23 Code, Section 1125(a); (III) trademark dilution, under the laws of the United States, as 24 provided under Title 15, United States Code, Section 1125(c); (IV) the related claim of 25 consumer fraud under the laws of the State of Arizona, as provided under at least Title 26 {9574569: } 1 Case 2:21-cv-00786-ESW Document 1 Filed 05/03/21 Page 2 of 31 1 44, Chapter 10, Article 7, A.R.S. § 44-1521 et seq.; (V) the related claim of common law 2 trademark infringement under the laws of the State of Arizona; (VI) the related claim of 3 a violation of the Unfair Practices Act under the laws of the State of California, as 4 provided under at least Cal. Bus. & Prof. Code § 17200 et. seq.; (VII) the related claim 5 of common law trademark infringement under the laws of the State of California; and 6 (VIII) the related claim of common law unfair competition under the laws of the State of 7 California. 8 Jurisdiction and Venue 9 2. This court has jurisdiction of this action under 15 U.S.C. § 1121, 28 U.S.C. 10 §§ 1331, 1338(a) and 1338(b), and under its supplemental jurisdiction, 28 U.S.C. § 11 1367(a). 12 3. This Court has jurisdiction of the parties under Rule 4.2 of the Arizona 13 Rules of Civil Procedure and under Rule 4(k) of the Federal Rules of Civil Procedure. 14 4. Venue is proper in this Court under 28 U.S.C. §§ 1391(b) and (c). 15 The Parties 16 5. SBS is an Arizona limited liability company having its principal place of 17 business at 3861 E. Kings Avenue, Phoenix, Arizona 85032. 18 6. Defendant, Alpha Exploration Co., which is also known as “Clubhouse” as 19 a result of its distribution of the iOS software application entitled “Clubhouse” (“AEC”), 20 is a Delaware company having its principal place of business at 548 Market Street, PMB 21 72878, San Francisco, California 94104. 22 7. SBS has conducted its business in Arizona and within this judicial district. 23 8. AEC has a significant number of users and members (“customers”) for its 24 “Clubhouse” iOS software application in Arizona and within this judicial district, and has 25 conducted its business and has performed many of the acts complained of herein in 26 Arizona and within this judicial district. {9574569: } 2 Case 2:21-cv-00786-ESW Document 1 Filed 05/03/21 Page 3 of 31 1 Plaintiff SBS’s Business and Background 2 9. In 2018, SBS founded “THECLUBHOUSE” - a destination for current and 3 aspiring sports business professionals to join a community, share resources, establish and 4 grow a network, and collectively support career growth in sports business (“SBS’s “THE 5 CLUBHOUSE””). 6 10. SBS has been using “THECLUBHOUSE” name in association with this 7 social and business blogging, podcasting, and networking service related to sports topics 8 and within the sports industry since at least as early as November of 2018. 9 11. On May 31, 2019, SBS submitted an application for a trademark 10 registration with the United States Patent and Trademark Office (“USPTO”) for 11 “THECLUBHOUSE” in classes 035 and 041 (Serial No. 88455102). 12 12. On December 24, 2019, the USPTO issued to SBS U.S. Trademark 13 Registration No. 5943043 for the mark “THECLUBHOUSE” for “Providing networking 14 opportunities for individuals seeking employment; Providing an on-line searchable 15 database featuring employment opportunities” in class 035 and “Education services, 16 namely, providing non-downloadable webinars and personal mentorship in the fields of 17 business and career advancement in the sports industry; Providing a website featuring 18 blogs and non-downloadable publications in the nature of articles, podcasts, and 19 newsletters in the field(s) of networking, job opportunities, and career advancement in 20 the sports industry” in class 041. (“SBS’s Registered Mark”). A true and accurate copy of 21 this Registration is attached as Exhibit A. 22 13. SBS has marketed and provided its social and business blogging, 23 podcasting, and networking services related to sports topics and within the sports industry 24 and the services identified SBS’s Registered Mark in commerce since at least as early as 25 November 14, 2018. 26 {9574569: } 3 Case 2:21-cv-00786-ESW Document 1 Filed 05/03/21 Page 4 of 31 1 14. As identified in the recitation of services in SBS’s Registered Mark, SBS’s 2 “THE CLUBHOUSE” services feature a community for individuals to network and grow 3 their careers in sports business. 4 15. The focus of SBS’s “THE CLUBHOUSE” services and content revolves 5 largely around sharing industry knowledge, guidance, and best practices for consumers 6 who are interested in growing a career in sports. 7 16. While much of SBS’s “THE CLUBHOUSE” services and content can often 8 be job related, their multi-platform content also includes knowledge and resources 9 relating to sales, sponsorships, and marketing, social media and analytics. 10 17. SBS’s “THE CLUBHOUSE” provides content to consumers through its 11 blogs (180+ articles), webinars (77+ sessions), social media accounts (20,000+ followers 12 across all channels), Newsletter (13,000 subscribers), and through its website, which 13 garners approximately 100,000 page-views per month. 14 18. Users and members of SBS’s “THE CLUBHOUSE” online community can 15 access live and on-demand webinars, gain mentorship from industry professionals via 16 direct online mentorship, receive tips on their networking, resumes or other career 17 opportunity behaviors, and view potential jobs. Screenshots of SBS’s website using the 18 SBS Registered Mark in connection with such services are set forth below: 19 20 21 22 23 24 25 26 {9574569: } 4 Case 2:21-cv-00786-ESW Document 1 Filed 05/03/21 Page 5 of 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 19. Since its launch, SBS’s “THECLUBHOUSE” has become ubiquitous in its {9574569: } 5 Case 2:21-cv-00786-ESW Document 1 Filed 05/03/21 Page 6 of 31 1 industry, and has acquired a network of resources, contributions and direct participation 2 from well-known professional sports organizations across the MLB, NBA, NHL, MLS, 3 WNBA, and NFL (amongst others), NCAA sports programs, and other highly respected 4 companies who offer services in sports business, such as ticket sales companies, 5 hospitality companies and a variety of other companies offering business administration 6 and related management services for sports business. 7 20. These aforementioned sports business companies and organizations, and 8 many more, rely on SBS’s “THECLUBHOUSE” to post jobs for highly qualified 9 individuals who access SBS’s “THECLUBHOUSE” job board. 10 21. At any given time, users of SBS’s “THECLUBHOUSE” can visit the job 11 board and will see many notable and recognizable companies, as shown below: 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {9574569: } 6 Case 2:21-cv-00786-ESW Document 1 Filed 05/03/21 Page 7 of 31 1 22. Furthermore, SBS’s “THECLUBHOUSE” users can use the services to find 2 mentors based on their discipline and/or organization affiliation and directly 3 communicate with their mentor. 4 23. Many individuals who work at notable sports business organizations 5 participate as mentors to users of SBS’s “THECLUBHOUSE” services and contribute 6 knowledge, facilitation conversations and foster professional relationships with such 7 users. 8 24. SBS’s “THECLUBHOUSE” currently boasts over 190 mentors, who each 9 offer their services to members of SBS’s “THECLUBHOUSE,” which include 10 participating in direct communication with members for the purposes of sharing advice, 11 educational resources, and any other type of mentorship and assistance that is valuable 12 from a networking standpoint. See below for some examples: 13 14 15 16 17 18 19 20 21 22 23 24 25 26 {9574569: } 7 Case 2:21-cv-00786-ESW Document 1 Filed 05/03/21 Page 8 of 31 1 25. Users of the SBS’s “THECLUBHOUSE” benefit not only from accessing 2 job openings at highly regarded sports business companies and gaining exclusive 3 mentorships from well-respected industry professionals, but are also offered a plethora of 4 resources that expand their knowledge of sports business and facilitate networking and 5 cultivate relationships.
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