UFC Ultimate Fitness Center v. Zuffa - trademark complaint.pdf

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    1

    Matthew J. Faust, State Bar No. 254145

    [email protected]

    Khodadad D. Sharif, State Bar No.187992

    [email protected]

    SHARIF | FAUST LAWYERS, LTD.1010 Second Ave, 24th Floor

    San Diego, CA 92101

    Telephone: (619) 233-6600

    Facsimile: (619) 233-6602

    Attorneys for PlaintiffUFC Ultimate Fitness Center, LLC

    UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF CALIFORNIA

    UFC ULTIMATE FITNESS CENTER,

    LLC, a California limited liability

    company,

    Plaintiff,

    vs.

    ZUFFA, LLC, a Nevada limited liability

    company; and

    DOES 1 through 25;

    Defendants.

    ))))))))))))))))))

    Case No.:

    COMPLAINT FOR DAMAGES ANDINJUNCTIVE RELIEF

    JURY TRIAL DEMANDED

    COMES NOW, PLAINTIFF UFC ULTIMATE FITNESS CENTER, LLC, a

    California limited liability company which brings this action against DEFENDANT ZUFFA

    LLC, a Nevada limited liability company; and DOES 1 through 25 and allege as follows:

    ///

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 1 of 32

    '14CV2870 JMADMS

    Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 1 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    2

    INTRODUCTION

    1) Plaintiff UFC ULTIMATE FITNESS CENTER, LLC brings this lawsuit to

    protect the substantial good will that it has developed since 1996 in its distinctive trademarks

    Ultimate Fitness Center, UFC, UFC Ultimate Fitness Center. Plaintiff has incorporated

    these marks with the tagline The Gym that Fits Your Life!. Plaintiff has further obtained a

    federally-registered trademark for its logo. All of these marks have gained a reputation in the

    San Diego area for Plaintiffs high quality hard core gym and health club.

    2)

    The good will and reputation for quality that Plaintiff has worked so hard to

    cultivate is being threatened by Defendants action. Prior to 2010 Defendant had used the

    trademark UFC only in connection with the staging of mixed martial arts fights. But in or

    about 2010, Defendant began expanding its business in the area of hard core gyms and

    health clubs. Upon opening gyms in the San Diego area under the moniker UFC Gym

    Defendant has created confusion in the marketplace amongst the same consumers that Plaintiff

    offers its services to. Defendant not only knows of this confusion, but is believed to be

    intentionally seeking to profit from it. Unless Defendant is enjoined from using the UFC

    Gym mark, such use will continue to cause consumer confusion, and thus will cause

    irreparable harm to Plaintiff.

    3) This action seeks injunctive relief, damages, and other appropriate relief arising

    from Defendants willful acts of trademark infringement and unfair competition.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 2 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 2 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    3

    JURISDICTION AND VENUE

    4) This Court has subject matter jurisdiction over Plaintiffs claims for infringement

    pursuant to 15 U.S.C. 1121, et seq(the Lanham Act), and 28 U.S.C. 1331 and 1338 (a)

    and (b).

    5) This Court has supplemental jurisdiction over Plaintiffs claims arising under the

    laws of California pursuant to 28 U.S.C. 1367(a) because these claims are so related to

    Plaintiffs claims under Federal Law that they form part of the same case or controversy and

    derive from a common nucleus of operative fact.

    6) The Court has personal jurisdiction over Defendant because the complained-of

    acts all occurred and were committed by Defendant in this Judicial District.

    7) Venue is proper in this Court pursuant to 28 U.S.C. 1391(b) and 1400(b)

    because Plaintiffs claims arose in this Judicial District.

    THE PARTIES

    8) Plaintiff UFC ULTIMATE FITNESS CENTER, LLC (UFC) is a local gym

    based in Chula Vista, California.

    9)

    Defendant, ZUFFA, LLC, (Zuffa), is a limited liability company formed under

    the laws of the state of Nevada. At all times alleged herein, Zuffa has knowingly and

    intentionally engaged in acts in this Judicial District.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 3 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 3 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    4

    10) Plaintiff is ignorant of the true names and capacities of the Defendants sued

    herein under the fictitious names DOES 1 through 25, inclusive. Plaintiff is informed and

    believes that each of the Defendants was responsible in some manner for the current damages

    alleged in this Complaint.

    11) At all times mentioned in the causes of action into which this paragraph is

    incorporated by reference, each Defendant was the agent/employee of each and every other

    Defendant. In doing the things alleged in the causes of action to which this paragraph is

    incorporated by reference, each and every Defendant was acting within the course and scope

    of this agency and employment and was acting with the consent, permission, and authorization

    of each of the other Defendants. All actions of each Defendant alleged in the causes of action

    into which this paragraph is incorporated by reference were ratified and approved by the

    officers or managing agents of every other Defendants.

    FACTS COMMON TO ALL CAUSES OF ACTION

    I. The Parties

    A. UFC Ultimate Fitness, LLC

    12)

    Plaintiff, UFC ULTIMATE FITNESS CENTER, LLC, operates a gym / health

    club under the same name in Chula Vista, California. The UFC gym has been family owned

    and operated since 1996. Throughout its operation, the gym has been known by its acronym

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 4 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 4 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    5

    UFC, and includes this name on its advertisements, membership agreements, sponsorships

    and other related marketing documentation.

    13)

    Throughout the nearly 20 years of its existence, UFC has advertised the gym

    under the names Ultimate Fitness Center, UFC, UFC Ultimate Fitness Center, and has

    often incorporated these marks with the tagline The Gym that Fits Your Life!. UFC further

    operates a website under the URL www.ultimatefitnesscenterchulavista.com. UFC has

    further taken steps to develop and promote its good name in this judicial district and across the

    border in Mexico. UFC has sponsored body builders, boxers, and mixed martial artists on

    both sides of the border. UFC also promotes its services by sponsoring local athletic

    competitions and events.

    14) Through these efforts, UFC has created sufficient goodwill in the purchasing

    publics mind so as to create secondary meaning and brand recognition. In addition to the

    above, UFC has used the UFC, Ultimate Fitness, and The Gym That Fits Your Life

    trademarks (collectively, the UFC Marks) in commerce by, among other things, displaying

    and affixing the mark and name to prospective purchasers in the ordinary course of business in

    a manner that associates the mark and name with Plaintiff's goods, services, and/or business.

    In doing this, UFC has distinguished its products and services from other products and

    services, has made the mark and name well known among consumers, and otherwise results in

    a protectable trademark right and name. The UFC Marks and name distinguish Plaintiffs

    products and services from other products and services because the mark and name are

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 5 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 5 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    6

    inherently distinctive, and, in any event, they have acquired a secondary meaning in the

    market relevant to Plaintiffs and Defendants consumers.

    15)

    Accordingly, UFC has registered the below trademark with the United States

    Patent and Trademark Office, which includes the literal element Ultimate Fitness Center and

    has been assigned Registration Number 4,600,344 with a date of first use of 20 June 1996 and

    a registration date of 10 December 2013:

    16) Further, UFC has applied for trademarks with the United States Patent and

    Trademark Office. Currently pending is the below-described application:

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 6 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 6 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    7

    Trademark Serial No. Date Filed Description of

    Goods and Services

    Intl

    Class

    UFC ULTIMATE FITNESS

    CENTER THE GYM THAT

    FITS YOUR LIFE!

    85,126,538 09/09/2010 Health club services,

    namely, providing

    instruction and

    equipment in the

    field of physical

    fitness, exercise,

    boxing and mixed

    martial arts

    041

    17) The 538 registration featured a number of office actions and suspensions, as

    further explained below, but the most recent was issued on 3 October 2012. In that office

    action, the examiner indicated that the mark was likely to cause confusion with the trademark

    bearing Registration No. 3,999,175, which is owned by Defendant.

    B. Zuffa, LLC

    18) Zuffa, LLC owns and operates the Ultimate Fighting Championship, also known

    as UFC. According to Zuffas own trademark filings, it has utilized the UFC mark to

    advertise its popular MMA-based fights since 2007. Also according to Zuffas trademark

    filings, it decided to venture into the health care arena in approximately 2009.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 7 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 7 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    8

    19) Zuffa has received registrations from the United States Patent and Trademark

    Office for the following trademarks (hereinafter the UFC Gym Registrations):

    Trademark Reg. No. DateRegistered

    Date ofFirst Use

    Description ofGoods and Services

    IntlClass

    UFC 3,723,920 6/19/2006 8/27/2007 Weight lifting gloves;

    martial arts equipment,

    namely bag gloves, shin

    guards, punch mitts, pads,

    namely kick pads, target

    pads and shin pads; focus

    mitts, mouth guards, free

    standing bags

    028

    UFC 3,723,920 6/19/2006 2/21/2009 Providing health club

    services, namely providing

    fitness and exercise

    facilities

    041

    UFC GYM 4,168,373 12/10/2008 12/01/2009 Sweatshirts; hooded

    sweatshirts; tee-shirts;

    sports shirts; muscle shirts;

    tank tops; shorts,

    Boxing and martial arts

    equipment, namely martialarts gloves, wrestling

    gloves, boxing gloves,

    striking bag gloves,

    competition gloves,

    grappling gloves, knuckle

    guards; Boxing and martial

    arts equipment, namely,

    kicking shields, kick boxing

    shing guards, kick boxinghead guards, femail chest

    protectors, bunch mitts,

    pads, kick pads, target

    pads, and shin pads for kick

    boxing, and online retail

    store services featuring

    025,

    028,

    035

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 8 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 8 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    9

    fitness related clothing,

    sportswear, mixed martial

    arts gear and accessories

    UFC GYM 3,999,175 7/19/2011 12/1/2009 Providing health club

    services, namely providingfitness and exercise

    facilities; instruction

    services, namely instruction

    in the field of health and

    physical fitness

    041,

    044

    UFC GYM 4,106,124 2/28/2012 11/1/2009 Sports bags, travel bags,

    duffel bags, gym bags,

    backpacks

    018

    UFC GYM 4/147712 5/22/2012 5/22/2012 Towels 024

    20) Zuffa also has applications for trademarks currently pending before the United

    States Patent and Trademark Office (hereinafter the Pending UFC Gym Marks):

    Trademark Serial No. Date Filed Description of

    Goods and Services

    Intl

    Class

    UFC TRAINER

    PERSONAL THE

    ULTIMATE FITNESS

    SYSTEM

    85,294,702 4/13/2011 Prerecorded compact

    discs, optical discs,

    memory cards and audio

    and visual recordings

    featuring physical training,

    exercise, mixed martial

    arts, sports and

    entertainment; computer

    game software; computer

    game discs; video game

    software; video gamediscs; interactive game

    software; and interactive

    computer game discs

    009

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 9 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 9 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

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    UFC GYM 85,288,367 4/6/2011 Providing information in

    the fields of nutrition,

    health and wellness

    044

    UFC GYM 85,2883,61 4/6/2011 Health club services,

    namely, providing fitness,

    personal training and

    exercise facilities;

    providing instruction in the

    fields of fitness, personal

    training, exercise and

    mixed martial arts;

    providing instructional

    programs and classes in

    fields of fitness, personal

    training, exercise and

    mixed martial arts;

    providing information in

    the fields of fitness,

    personal training, exercise

    and mixed martial arts via

    a global computer

    network; Providinginstruction in the fields of

    nutrition, health and

    wellness

    041

    UFC GYM 85,288,352 4/6/2011 Towels 024

    UFC GYM 85,288,344 4/6/2011 Beverageware; sports

    bottles sold empty; bottlessold empty; shaker cups

    sold empty

    021

    UFC GYM 85,288,337 4/6/2011 All purpose sport bags, all

    purpose athletic bags, all

    purpose carrying bags,

    duffle bags and backpacks

    018

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 10 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 10 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

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    UFC TRAINER 85,262,581 3/9/2011 Prerecorded compact

    discs, optical discs,

    memory cards and audio

    and visual recordings

    featuring physical training,exercise, mixed martial

    arts, sports and

    entertainment; computer

    game software; computer

    game discs; video game

    software; video game

    discs; interactive game

    software; and interactive

    game discs

    009

    UFC PERSONAL

    TRAINER ULTIMATE

    TRAINER SYSTEM

    85,246,423 2/18/2011 Prerecorded compact

    discs, optical discs,

    memory cards and audio

    and visual recordings

    featuring physical training,

    exercise, mixed martial

    arts, sports and

    entertainment; computergame software; computer

    game discs; video game

    software; video game

    discs; interactive game

    software; and interactive

    computer game discs

    009

    UFC PERSONALTRAINER ULTIMATE

    FITNESS SYSTEM

    85,246,150 2/18/2011 Prerecorded compactdiscs, optical discs,

    memory cards and audio

    and visual recordings

    featuring physical training,

    exercise, mixed martial

    arts, sports and

    009

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 11 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 11 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

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    entertainment; computer

    game software; computer

    game discs; video game

    software; video game

    discs; interactive gamesoftware; and interactive

    computer game discs

    UFC PERSONAL

    TRAINER

    85,246,131 2/18/2011 Prerecorded compact

    discs, optical discs,

    memory cards and audio

    and visual recordings

    featuring physical training,

    exercise, mixed martial

    arts, sports and

    entertainment; computer

    game software; computer

    game discs; video game

    software; video game

    discs; interactive game

    software; and interactive

    computer game discs

    009

    21) The applications for these marks have been suspended by the United States

    Patent and Trademark Office as a result of the proceedings currently pending before the

    Trademark Trial and Appeal Board described below.

    22)

    The UFC Gym Registrations and the Pending UFC Gym Marks will be

    collectively referred to as the Junior UFC Marks.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 12 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 12 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

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    III. The Defendants Infringing Actions

    23) Zuffa contends that it began advertising its UFC brand in conjunction with gym

    and health care services in or about 2009, although this information was unknown to Plaintiff

    UFC until 2012 when office actions were issued on the 538 Application.

    24) At all relevant times, Zuffa has known of UFCs senior use of the UFC

    Trademarks. As a part of its operations, Zuffa oversees the production of a reality television

    show entitled The Ultimate Fighter. In building its brand, Plaintiff UFC has advertised its

    health club during episodes of The Ultimate Fighter during the year 2005 without objection

    from Zuffa. Additionally, several of Zuffas fighters have visited and trained at UFCs gym in

    Chula Vista, California.

    25) Moreover, despite receiving notice of the TTAB proceedings identified below

    (and UFCs pre-existing use of the UFC Marks), Zuffa began opening gyms in San Diego,

    California.

    26) Since Zuffa began operating its gyms, UFC has received notifications from

    Zuffas creditors of unpaid bills and governmental agencies complaining that Zuffa has not

    complied with local zoning requirements. Such documentation is conclusive proof that

    Zuffas use of the UFC Marks is likely to cause confusion.

    27) As a result of Defendants acts, Plaintiff has been injured in an amount of no less

    than the minimum jurisdiction of this Court ($ 75,000).

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 13 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 13 of 32

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

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    IV. The TTAB Proceedings

    28) As a result of the office actions that were issued on the 538 Application, UFCs

    principal, Rob Hueso, caused to be filed a petition for cancellation with the U.S.P.T.O.s

    Trademark Trial and Appeal Board (the Petition to Cancel). The Petition to Cancel, as

    amended, sought to cancel U.S. Trademark Registration No. 3,723,920 (for UFC in

    International Class 041).

    29) Throughout the Petition to Cancel, Zuffa utilized stall tactics and filed abusive

    filings in an effort to dissuade Plaintiff from continuing its proceeding. In 2013, nearly three

    years after the Petition to Cancel had been filed, the matter was finally set to be determined

    But when Zuffa was to file its evidence in defense to UFCs Petition to Cancel, Zuffa reversed

    course and filed a lawsuit in the Federal District Court for the District of Nevada under case

    number 2:13-cv-01927 (the Nevada Proceedings). Zuffa knew that a technicality in the

    rules governing petitions to cancel would delay determination of the Petition to Cancel

    because they would be stayed while the Nevada Proceedings were pending.

    V. The Nevada District Court Matter and Appeal

    30)

    In the Nevada Proceedings, Zuffa filed documentation which falsely suggested

    that UFC had done business in Nevada and that UFC had intended to harm Zuffa in Nevada.

    Zuffa further and wrongfully filed a motion for preliminary injunction and sought default

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    against UFC while knowing full well that UFC was not subject to the Nevada Courts

    jurisdiction.

    31)

    When UFC brought these contentions to Zuffas attention, Zuffa was recalcitran

    and refused to dismiss its case. Accordingly, UFC filed a motion to dismiss the claim

    pursuant to F.R.C.P. 12(b)(2).

    32) After a hearing on the matter, the District Court agreed with UFC and dismissed

    the Nevada Proceedings.

    33)

    However, just as UFC sought to reopen the Petition to Cancel and lift the stay

    Zuffa filed a notice of appeal contesting the Nevada Courts fair and just determination of

    jurisdiction. That appeal has been assigned case number 14-16724 by the Court of Appeals

    for the Ninth Circuit. Zuffa again knew that filing the appeal would result in a prolonged stay

    of the Petition to Cancel.

    34) While all of these matters were pending, Zuffa went about its business of

    building competing gyms in San Diego utilizing the trade name UFC Gym.

    35) Zuffa has at all times known that its use of the UFC Gym trade name infringed on

    the UFC Trademarks.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 15 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 15 of 32

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    FIRST CAUSE OF ACTION

    (Federal Trademark Infringement 15 U.S.C. 1114, et seq)

    36)

    Plaintiff hereby incorporates by reference paragraphs 1-35 of this Complaint as if

    fully set forth herein.

    37) Plaintiffs federal registrations on the Principal Register for the 344 Mark is

    conclusive evidence of Plaintiffs exclusive right to use that mark, pursuant to the Lanham

    Act, 15 U.S.C. 1115.

    38)

    Further, Plaintiff has used the UFC Trademarks and tagline in commerce by,

    among other things, displaying and affixing the mark and name to prospective purchasers in

    the ordinary course of business in a manner that associates the mark and name with Plaintiff's

    goods, services, and/or business. In doing this, Plaintiff has distinguished its products and

    services from other products and services, has made the mark and name well known among

    consumers, and otherwise results in a protectable trademark right and name. The UFC

    Trademarks distinguish Plaintiffs products and services from other products and services

    because the mark and name are inherently distinctive, and, in any event, they have acquired a

    secondary meaning in the market relevant to Plaintiffs and Defendants consumers.

    39)

    Defendants wrongful use of the UFC Marks for the advertisement and branding

    of its own gyms is likely to cause confusion as to sponsorship or authorization by UFC, or

    alternatively, destroy the origin-identifying function of the UFC Marks. Defendants actions

    constitute trademark infringement in violation of the Lanham Act, 15 U.S.C. 1114.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 16 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 16 of 32

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    40) As a proximate result of Defendants actions, Plaintiff has suffered and will

    continue to suffer great damage to its business, goodwill, reputation, profits, and the strength

    of its trademarks. The injury to Plaintiff is and continues to be ongoing and irreparable. An

    award of monetary damages alone cannot fully compensate Plaintiff for its injuries and

    Plaintiff lacks an adequate remedy at law.

    41) The foregoing acts of infringement have been and continue to be deliberate,

    willful and wanton, making this an exceptional case within the meaning of 15 U.S.C. 1117

    42)

    Plaintiff is entitled to a preliminary and permanent injunction against Defendants

    as well as all other remedies available under the Lanham Act, including, but not limited to,

    compensatory damages, treble damages, disgorgement of profits, costs, and attorney fees.

    SECOND CAUSE OF ACTION

    (Federal Unfair Competition:

    False Designation of Origin, Passing Off, and False Advertising)

    43) Plaintiff hereby incorporates by reference paragraphs 1-35 of this Complaint as if

    fully set forth herein.

    44)

    The 344 Marks and UFC Marks, as used by Plaintiff in connection with

    providing Plaintiffs goods and services are distinctive marks and have become associated

    with Plaintiff and thus exclusively identify Plaintiffs business, products, and services.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 17 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 17 of 32

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    45) Because of Defendants wrongful use of the Junior UFC Marks, consumers are

    and have been deceptively led to believe that Defendants services originates with or are

    sponsored or otherwise approved by Plaintiff, in violation of the Lanham Act, 15 U.S.C.

    1125, subd. (a), or alternatively will cause patrons to believe that the Plaintiffs marks are

    generic, thus destroying the goodwill and value Plaintiff has built with the 344 Mark and

    UFC Marks.

    46) The foregoing acts and conduct by Defendants constitutes false designation of

    origin, passing off, and false advertising in connection with products and services distributed

    in interstate commerce, in violation of the Lanham Act, 15 U.S.C. 1125, subd. (a).

    47) Defendants acts, as set forth above, have caused irreparable injury to Plaintiffs

    goodwill and reputation. The injury to Plaintiff is and continues to be ongoing and irreparable

    An award of monetary damages alone cannot fully compensate Plaintiff for its injuries and

    Plaintiff lacks an adequate remedy at law.

    48) Plaintiff is entitled to a permanent injunction against Defendants, as well as all

    other remedies under the Lanham Act, including, but not limited to compensatory damages

    treble damages, disgorgement of profits, costs, and attorney fees.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 18 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 18 of 32

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    THIRD CAUSE OF ACTION

    (California Common Law Trademark Infringement)

    49)

    Plaintiff hereby incorporates by reference paragraphs 1-35 of this Complaint as if

    fully set forth herein.

    50) Plaintiff has used the UFC Marks in commerce by, among other thing, displaying

    and affixing the mark and name to prospective purchasers in the ordinary course of business in

    a manner that associates the mark and name with Plaintiff's goods, services, and/or business,

    distinguishes Plaintiffs products and services from other products and services, has made the

    mark and name well known among consumers, and otherwise results in a protectable

    trademark right and name. The UFC Marks and name distinguish Plaintiffs products and

    services from other products and services because the mark and name are inherently

    distinctive, and, in any event, they have acquired a secondary meaning in the market

    relevant to Plaintiffs and Defendants consumers.

    51) Defendants began using the Junior UFC Marks and name after Plaintiff had

    used the 344 Mark and the UFC Marks in commerce, after the marks had begun

    distinguishing Plaintiffs services and products from other products and services, after

    Plaintiff made the mark and name well known among consumers, and after Plaintiff had

    obtained a protectable trademark right in the marks.

    52) Defendants, without the consent of Plaintiff, used in commerce, the Junior

    UFC Marks, and/or a designation confusingly similar to the344 Mark and UFC Marks, in

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 19 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 19 of 32

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    affiliation, connection, or association with Defendants goods or services in a manner that

    creates a likelihood of confusion, mistake and/or deception with the consuming public.

    53)

    Defendants acts complained of herein constitute trademark infringement

    under the common law of the State of California.

    54) Defendants trademark infringement under the common law of California has

    damaged and will continue to damage Plaintiff's goodwill and reputation and has resulted

    in a loss of revenue to Plaintiff in an amount to be determined.

    55)

    Plaintiff is informed and believes and on that basis alleges these acts by

    Defendants were done willfully and maliciously, with the deliberate intent to injure

    Plaintiffs business and for financial gain, thereby entitling Plaintiff to exemplary damages

    and/or attorneys fees to be proved at trial.

    FOURTH CAUSE OF ACTION

    (California Unfair Competition Bus. & Prof. Code 17200, et seq)

    56) Plaintiff hereby incorporates by reference paragraphs 1-24 of this Complaint as if

    fully set forth herein.

    57)

    Through the actions alleged above, Defendant has willfully copied Plaintiffs

    products and trademarks in an effort to profit from Plaintiffs good name. The acts of

    Defendant constitutes unfair competition in violation of California Business & Professions

    Code 1700, et seq.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 20 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 20 of 32

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    58) Plaintiff is informed and believes, and thereon alleges, that Defendants has

    profited through these unfair business practices.

    59)

    As a proximate result of Defendants actions, Plaintiff has suffered and will

    continue to suffer great damage to its business, goodwill, reputation, and profits, entitling

    Plaintiff to an order disgorging Defendant of its ill-gotten gains. The injury to Plaintiff is and

    continues to be ongoing and irreparable. An award of monetary damages alone cannot fully

    compensate Plaintiff for its injuries and Plaintiff lacks an adequate remedy at law.

    FIFTH CAUSE OF ACTION

    (Federal Trademark Counterfeiting 15 U.S.C. 1125)

    60) Plaintiff hereby incorporates by reference paragraphs 1-35 of this Complaint as if

    fully set forth herein.

    61) Plaintiff further alleges counterfeiting and infringement of a federally-registered

    trademark in violation of Section 32(1) of the Lanham Act, 15 U.S.C. 1114(1).

    62) Plaintiff has used the 344 Mark continuously in United States commerce since

    20 June 1996 for its gym and health club services. Plaintiff has invested substantial time

    effort and financial resources promoting the 344 Mark in connection with the marketing and

    sale of its goods and services in commerce. The consuming public recognizes the 344 Mark

    and associates it with Plaintiff.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 21 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 21 of 32

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    63) Plaintiffs 344 Mark is registered on the Principle Register of the United States

    Patent and Trademark Office for: providing a website featuring online sports training and

    training advice and the recording of training and workouts, in class 41.

    64) The UFC Gym marks appearing on Defendants advertisements for its related

    services are identical to or substantially indistinguishable from Plaintiffs genuine registered

    trademark.

    65) Defendants use of Plaintiffs 344 Mark on its advertisements is likely to cause

    confusion or mistake or to deceive consumers into believing that Plaintiff is the source of

    Defendants services.

    66) Upon information and belief, Defendant has advertised its services for sale using

    the 344 Mark with the intention of misleading, deceiving, or confusing consumers as to the

    origin of its services and of trading on Plaintiffs reputation and good will.

    67) Defendants unauthorized use of Plaintiffs 344 Mark in interstate commerce as

    described constitutes trademark counterfeiting under 15 U.S.C. 1114(1).

    68) Defendants unauthorized use of Plaintiffs 344 Mark in interstate commerce as

    described constitutes trademark infringement under 15 U.S.C. 1114(1).

    69)

    As a direct and proximate result of Defendants trademark counterfeiting and

    infringement, Plaintiff has suffered and will continue to suffer loss of income, profits and good

    will, and Defendant has acquired and will continue to unfairly acquire income, profits, and

    good will.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 22 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 22 of 32

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    70) Defendants acts of counterfeiting and infringement will cause further irreparable

    injury to Plaintiff if Defendant is not restrained by this Court from further violation of

    Plaintiffs rights. Plaintiff has no adequate remedy at law.

    SIXTH CAUSE OF ACTION

    (Declaratory Judgment (No infringement))

    71) Plaintiff hereby incorporates by reference paragraphs 1-70 of this Complaint as if

    fully set forth herein.

    72) On or about 21 October 2013, Defendant filed the Nevada Action, alleging that

    UFC had counterfeited, infringed, and diluted Defendants registered and unregistered

    trademarks. Defendant further alleged that Plaintiff engaged in unfair competition. Defendant

    based its claims upon the Lanham Act and comparable Nevada state laws.

    73) Plaintiff did not infringe on Defendants marks.

    74) Plaintiff did not counterfeit Defendants marks.

    75) Plaintiff has not diluted Defendants marks.

    76) Plaintiff has not engaged in unfair competition.

    77)

    Defendant has had actual notice of Plaintiffs rights in the 344 Mark and the

    UFC Marks since at least 2005 but has taken no legal action to prevent Plaintiffs further use

    of the 344 Mark and the UFC Marks. Since that date, in part reliance on Defendants

    silence, Plaintiff has continued to build its business and good will under its 344 Mark and the

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 23 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 23 of 32

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    UFC Marks. Defendant is thus barred by the equitable doctrines of laches, acquiescence and

    estoppel from asserting violation of its rights.

    78)

    Defendants assertions that Plaintiff is violating its legal rights irreparably injures

    Plaintiff and adversely affects its business and the large investment it has made in its mark and

    attendant good will. These assertions will continue to adversely affect Plaintiffs business

    unless prevented by this Court.

    79) Based on the allegations above, there is an actual and substantial controversy

    between Plaintiff and Defendant, who have adverse legal interests. Defendant has made clear

    to Plaintiff its belief that its trademark is currently being infringed by Plaintiffs use of its own

    trademark, and Plaintiff has denied any wrongdoing. The dispute between Plaintiff and

    Defendant is substantial, definite and immediate, and not hypothetical.

    80) In order to resolve the legal and factual questions raised by Defendant and to

    afford relief from the uncertainty and controversy which Defendants assertions have

    precipitated, Plaintiff is entitled to a declaratory judgment of its rights under 28 U.S.C.

    2201-02.

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 24 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 24 of 32

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    SEVENTH CAUSE OF ACTION

    (Declaratory Judgment (Federal Trademark Cancellation))

    81)

    Plaintiff hereby incorporates by reference paragraphs 1-69 of this Complaint as if

    fully set forth herein.

    82) On or about 21 October 2013, Defendant filed the Nevada Action, alleging that

    UFC had counterfeited, infringed, and diluted Defendants registered and unregistered

    trademarks, including the UFC Gym Registrations. Defendant further alleged that Plaintiff

    engaged in unfair competition. Defendant based its claims upon the Lanham Act and

    comparable Nevada state laws.

    83) Plaintiff denies that Defendant had used the UFC Gym Registrations in

    commerce before Plaintiff.

    84) Defendants assertions that it used the UFC Gym Registrations in commerce

    prior to Plaintiffs use of the 344 Mark and UFC Marks irreparably injures Plaintiff and

    adversely affects its business and the large investment it has made in its mark and attendant

    good will. These assertions will continue to adversely affect Plaintiffs business unless

    prevented by this Court.

    85)

    Based on the allegations above, there is an actual and substantial controversy

    between Plaintiff and Defendant, who have adverse legal interests. Defendant has made clear

    to Plaintiff its belief that its trademark is currently being infringed by Plaintiffs use of its own

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    trademark, and Plaintiff has denied any wrongdoing. The dispute between Plaintiff and

    Defendant is substantial, definite and immediate, and not hypothetical.

    86)

    In order to resolve the legal and factual questions raised by Defendant and to

    afford relief from the uncertainty and controversy which Defendants assertions have

    precipitated, Plaintiff is entitled to a declaratory judgment of its rights under 28 U.S.C.

    2201-02.

    87) Based on the foregoing, Plaintiff believes that it will be damaged by the above-

    identified UFC Gym Registrations, and hereby petitions to cancel the same.

    EIGHTH CAUSE OF ACTION

    (Declaratory Judgment (Deny Registration))

    88) Plaintiff hereby incorporates by reference paragraphs 1-77 of this Complaint as if

    fully set forth herein.

    89) On the dates listed above, Defendant filed with the United States Patent and

    Trademark Office the Pending UFC Gym Marks.

    90) The Pending UFC Gym Marks are confusingly similar to Plaintiffs 344 Mark

    and UFC Marks.

    91) Defendants assertions that it is entitled to obtain registration of the Pending UFC

    Gym Marks from the United States Patent and Trademark Office irreparably injures Plaintiff

    and adversely affects its business and the large investment it has made in its mark and

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    attendant good will. These assertions will continue to adversely affect Plaintiffs business

    unless prevented by this Court.

    92)

    Based on the allegations above, there is an actual and substantial controversy

    between Plaintiff and Defendant, who have adverse legal interests. Defendant has made clear

    to Plaintiff its belief that its Pending UFC Gym Marks are not confusingly similar to Plaintiffs

    344 Mark and UFC Marks. The dispute between Plaintiff and Defendant is substantial

    definite and immediate, and not hypothetical.

    93)

    In order to resolve the legal and factual questions raised by Defendant and to

    afford relief from the uncertainty and controversy which Defendants assertions have

    precipitated, Plaintiff is entitled to a declaratory judgment of its rights under 28 U.S.C.

    2201-02.

    JURY DEMAND

    94) Plaintiff hereby demands a jury trial in this case.

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    PRAYER

    WHEREFORE Plaintiff prays judgment against Defendants, and each of them, as

    follows:

    95) On the First through Fifth Causes of Action:

    (a)That Defendant, its officers, agents, servants, employees, and attorneys, and

    those persons in active concert or participation with Defendant who receive

    actual notice of the courts order by personal service or otherwise, be

    permanently enjoined from:

    (i)using the 344 Mark, the UFC Marks, alone or in combination with any

    other words or symbols which so resemble the marks and name of

    Plaintiffs as to be likely to cause confusion, deception or mistake,

    including the Junior UFC Marks, on or in connection with the

    advertising, offering for sale, or sale of any product or service which is

    not Plaintiffs or not authorized by Plaintiff to be sold in connection with

    each of said marks and name;

    (ii)blurring, passing off or falsely designating the origin of Defendants

    products and services, and from injuring Plaintiffs goodwill and

    reputation;

    (iii) using the 344 Mark, the UFC Marks, alone or in combination

    with any other words or symbols which so resemble the marks and name

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 28 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 28 of 32

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    of Plaintiffs as to be likely to cause confusion, deception or mistake,

    including the Junior UFC Marks, for goods or services, or on the Internet

    or as domain names, email addresses, meta tags, invisible data, or

    otherwise engaging in acts or conduct that would cause confusion as to

    the source, sponsorship, or affiliation of Defendants with Plaintiff;

    (b)That Defendant, in accordance with 15 U.S.C. 1116(a), be directed to file

    with this court and serve upon Plaintiff within thirty days after service of the

    permanent injunction a report in writing and under oath, setting forth in detai

    the manner and form in which Defendant has complied with the permanent

    injunction;

    (c)For general, special, actual, treble, and/or exemplary damages caused by

    Defendants wrongful actions;

    (d)For disgorgement of ill-gotten gains;

    (e)That this case be deemed an exceptional case under 15 U.S.C. 1117,

    subds. (a) and (b), and that Defendant be deemed liable for and ordered to

    reimburse Plaintiff for its reasonable attorney fees;

    96)

    On the Sixth Cause of Action:

    (a)Plaintiff requests that the Court declare and that a judgment be entered that:

    (i) Plaintiffs 344 Mark and UFC Marks do not violate Defendants

    rights under the trademark laws of the United States or any other laws

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    (ii) Plaintiffs 344 Mark and UFC Marks as used in its business is not

    dilutive of Defendants marks as used in its business;

    (iii)

    Defendant is barred by laches, acquiescence, and estoppel from

    asserting any likelihood of confusion between the trademarks of

    Plaintiff and Defendant

    (iv) Plaintiff has the right to use the 344 Mark and the UFC Marks in

    connection with Plaintiffs business, free from interference by

    Defendant, its officers, agents, employees, attorneys, privies

    representatives, successors and assigns, and from any and all persons

    acting in active concert or participation with or under authority from

    Defendant;

    (v) Defendant, its officers, agents, employees, attorneys, privies

    representatives, successors and assigns, and any and all persons in

    active concert or participation with or under authority from

    Defendants, be enjoined permanently from:

    a. interfering with or threatening to interfere with use of the 344

    Mark or the UFC Marks by Plaintiff, its related companies

    successors or assigns, in connection with its or their business; and

    b. Instituting or prosecuting any suit or other proceeding placing in

    issue the right of Plaintiff or said related companies, successors or

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    UFC Ultimate Fitness Center, LLC v. Zuffa, LLC

    Complaint

    31

    assigns, into register or use the 344 Mark or the UFC Marks with

    or without logo in connection with Plaintiffs business;

    (b)

    Plaintiff awarded its attorneys fees against Defendant under 15 U.S.C.

    1117, this case being exceptional;

    97) On the Seventh Cause of Action:

    (a)Plaintiff requests that the Court declare and that a judgment be entered

    that:

    (i)

    Declare, adjudge, and decree that the purported marks depicted in the

    UFC Gym Registrations are not valid trademarks under federal or

    California state law;

    (ii)Order cancellation of the UFC Gym Registrations pursuant to 15 U.S.C.

    1119;

    98) On the Eighth Cause of Action:

    (a)Plaintiff requests that the Court declare and that a judgment be entered that:

    (i) Defendants Pending UFC Gym Marks violate Plaintiffs rights under

    the trademark laws of the United States and the state of California;

    (ii)

    Defendants Pending UFC Gym Marks are confusingly similar to

    Plaintiffs 344 Mark and UFC Marks as used in its business;

    (b)That Plaintiff be awarded its attorneys fees against Defendant under 15

    U.S.C. 1117, this case being exceptional;

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 31 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 31 of 32

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    99)

    On All Causes of Action:

    (a)For interest;

    (b)

    For cost of suit incurred herein; and

    (c)For such other relief as the Court may deem proper.

    Respectfully submitted,

    SHARIF | FAUST LAWYERS, LTD.

    Dated: 4 December 2014 By: /s/ Matthew J. Faust

    MATTHEW J. FAUST

    Attorneys for Plaintiff

    UFC Ultimate Fitness Center, LLC

    Case 3:14-cv-99999 Document 2008 (Court only) Filed 12/04/14 Page 32 of 32Case 3:14-cv-02870-DMS-JMA Document 1 Filed 12/04/14 Page 32 of 32