BEVERLY HILLS—Judge David O. Carter of the U.S. District Court Central District of California today granted a temporary restraining order in the case of LFP IP v. Midway Venture in a trademark dispute over a San Diego club that has been operating without permission as Larry Flynt’s Hustler Club.
The ruling orders that the defendants are restrained from using the trademarks “Larry Flynt,” “Hustler” or “Hustler Clubs” in the operation of the club, which they purchased from Pacers, Inc. in September. Pacers had entered into an agreement with LFP Publishing Group in 2006 to operate and market an adult nightclub as a Hustler Club at a specified location in San Diego.
Pacers filed for bankruptcy in 2009, and in June of 2010 the Bankruptcy Court approved the sale of certain Pacer assets, including the club. Pursuant to the purchase agreement agreed to by the court, however, the transfer of the Hustler marks was expressly forbidden.
According to the plaintiffs’ complaint, the new operators continued to operate the club as the Larry Flynt’s Hustler Club, despite receiving two cease-and-desist letters in September and October asking for an immediate halt to the use of the name.
“Midway ignored these demands,” said Huslter in an announcement issued today. “Flynt’s lawyers filed suit on his behalf on Oct. 13, alleging, among other things, trademark infringement against Midway and the other named defendants. Midway and the other defendants have denied the allegations being made by Flynt and his companies.”
Judge Carter ruled today that the Flynt parties demonstrated a likelihood of success on the merits and would suffer irreparable harm if Midway were allowed to continue to operate the business as a Larry Flynt’s Hustler Club. A temporary restraining order was issued and the parties have been ordered to appear in court on Oct. 29 to argue the plaintiffs’ pending motion for a preliminary injunction.
"We are extremely pleased," said Michael Klein, president of LFP. "We applaud the court’s commitment to enforcing our trademark laws, and look forward to permanently enjoining this type of conduct. This decision is a win not only for Hustler and Larry Flynt, but for all companies burdened by trademark infringement."
Jonathan Brown, one of Flynt's attorneys, said, "It is always upsetting to a client when someone else is using your name or trademark without permission. This dispute is not over, but we are happy that we could quickly obtain an Order from Court enjoining the Defendants from further deceptive use of the famous Larry Flynt and Hustler trademarks."
Judge Carter’s order granting the ex parte TRO can be read here.
