Online coupon service CouponCabin Inc. says it has settled its lawsuit against Coupon Chief. CouponCabin had accused the rival online service of violating CouponCabin’s trademarks.
The terms of the settlement include Coupon Chief’s agreement to stop using coupon codes featuring CouponCabin’s trademarks and other similar variations of those marks, as well as Coupon Chief’s payment of an undisclosed sum for its past conduct, CouponCabin says. Coupon Chief also agreed to develop software that would prevent users, who can post coupon codes on the site, from publishing CouponCabin’s codes on the site in the future.
“We do not feel that these vanity codes are a protectable asset but we agreed to remove and prohibit coupons bearing certain coupon codes from our web site in order to settle the matter in view of the cost of litigation,” says Gary Gray, Coupon Chief co-founder.
CouponCabin.com filed the complaint Jan. 27 after requesting Coupon Chief remove CouponCabin’s “couponcabin” code, as well as variations of that code, that were showing up on Coupon Chief’s site. The complaint asserted claims for trademark infringement, unfair competition, interference with contractual relations and unjust enrichment.
“We get a lot of different exclusive content that is branded with the Coupon Cabin code,” says Scott Kluth, Coupon Cabin president. “For the most part, it’s not difficult to ascertain whether it is exclusive to our site. It’s pretty clear.”
The complaint is part of a concerted effort by CouponCabin to protect its trademarked content, says Kluth. “We find that a lot of small sites take content from us as their only source,” he says. “It’s bad for us and bad for our merchants who are looking to reward our customers with that content. That’s why we’ve taken it as our onus to safeguard our codes.”