Sturgis Motorcycle Rally, Inc. (“SMRi”) has reached a settlement in its trademark infringement litigation against Kent Mortimer and his companies, which arose out of misuse of SMRi’s STURGIS trademarks. “After months of negotiations, two mediations, and over two years of litigation in federal court, we are pleased to settle this case,” Dean Kinney, chairperson of SMRi, said. “We are looking forward to focusing more of SMRi’s efforts and resources on growing the Rally and bettering the Sturgis community.”
SMRi filed its suit against Kent Mortimer and his company, Mortimer Enterprises, in 2014 after discovering Mortimer, through his former business Renegade Classics, was selling, to retail stores in Georgia and elsewhere, unauthorized apparel bearing the term “Sturgis Rally Week,” which infringes SMRi’s rights in its Sturgis Bike Week®, Sturgis® Motorcycle Rally™ and Sturgis® trademarks.
The settlement agreement provides that Mortimer and his companies will pay $325,000 to SMRi and that they no longer will manufacture, sell, distribute or advertise goods or services using any of SMRi’s trademarks. Mortimer, previously a vocal opponent of SMRi and its trademark rights, and his companies also agreed: · To acknowledge the validity of SMRi’s STURGIS trademarks · To destroy his remaining inventory of infringing goods · Not to participate in the protest organization Concerned Citizens for Sturgis, Inc.; · Not to disparage SMRi or its officers or directors.