Nickelodeon's Parent Company Sues a SpongeBob SquarePants Parody Restaurant
Viacom filed a trademark and copyright infringement suit based on Pixi Universal's use of their SpongeBob SquarePants-related intellectual property.
Nickelodeon’s parent company, Viacom, has filed a trademark infringement lawsuit in Texas against restaurant owner PIXI for their SpongeBob SquarePants-themed pop-up bar.
Viacom states in their complaint:
“The Rusty Krab…infringes Viacom’s copyrights in the Works by using names, images, characters, and recreations of famous SpongeBob scenes throughout the restaurant and on the menu and marketing materials.”
"Pixi's conduct has caused — and unless enjoined by the court, will continue to cause — a likelihood of confusion and deception of members of the trade and public, and, additionally, injury to Viacom's goodwill and reputation as symbolized by the registered marks, for which Viacom has no adequate remedy at law."
If you are not familiar with the cartoon, SpongeBob lives in a pineapple under the sea, is porous, and works as a fry cook at a restaurant called the Krusty Krab, which is known for its Krabby Patties.
Viacom owns trademark registrations for KRUSTY KRAB, KRABBY PATTIES, SPONGEBOB SQUAREPANTS, along with and including other common law rights for the characters and recognizable aspects from the series, collectively known as the “SpongeBob Marks.”
Viacom is concerned the pop-up bar will cause consumers to believe the Rusty Krab Experience is associated with Nickelodeon and SpongeBob SquarePants, stating that “Pixi uses marks that are substantially indistinguishable from, or confusingly similar to, the SpongeBob Marks….”
Among other things, Viacom also included in their suit that visitors have complained about unsanitary conditions and unsafe food in the restaurant.
Pixi faces accusations of trademark infringement, unfair competition, copyright infringement, cybersquatting, and trademark dilution.
| Viacom is seeking relief in the form of: | |
|---|---|
| 1 | $200,000 in statutory damages for the registration of TheRustyKrabExperience.com and RustyKrabExperience.com |
| 2 | $150,000 additional statutory damages per infringed work of willful copyright infringement, |
| 3 | Reasonable royalty of 10% times three, of all revenue earned by the restaurant |
| 4 | Give up any profits from the restaurant, times three |
| 5 | Punitive damages, attorneys’ fees, costs, and |
| 6 | Prohibiting Pixi and all those associated with them from ever using any SpongeBob Marks in any way without Viacom’s written consent. |
Counsel for PIXI Universal, LLC stated, “The Rusty Krab is a parody restaurant concept inspired by SpongeBob, giving it a new comedic purpose within the context of a restaurant. While Intellectual property law is complex, it is not a “secret formula.” Per U.S. copyright and trademark law, parody squarely fits into the fair use doctrine, which provides for the legal, unlicensed use of copyrighted material.”
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