Don’t Lose Your Trademark Because of Bad Behavior

Trademarks can be valuable property. They can be used as collateral to obtain bank loans, as the enticing crown jewel to facilitate an asset purchase agreement or, when a party to a lawsuit fails to appear and has a judgment issued against it, to satisfy the judgment. The controversial, far-right group known as the Proud Boys has learned that the hard way. The organization recently had all rights in its federally registered PROUD BOYS trademark (USPTO Registration No. 5462744) transferred to the plaintiff due to a lawsuit filed against the organization in 2021.

The plaintiff, the Metropolitan African Methodist Episcopal Church, a historic predominantly Black house of worship in Washington, D.C., alleged that the defendants, Proud Boys International, LLC, as well as other individuals and entities associated with it, were responsible for the vandalization of its building in December 2020. Specifically, the plaintiff contended that the defendants should be liable for the destruction caused by its members, which was spearheaded by its former leader, Enrique Tarrio, following a political rally. In its complaint filed on January 4, 2021 at the Superior Court of the District of Columbia, the church called the actions “acts of terror” committed by Mr. Tarrio and others “to intimidate the church and silence its support for racial justice.” Judge Neal E. Kravitz presiding over the case agreed, referring to the group’s conduct as “hateful and overtly racist.” The defendants never answered the complaint or otherwise appeared in the case, so Judge Kavitz entered a default judgment against them in June 2023 for $1,036,626.78 plus costs and interest. None of the defendants ever satisfied the judgment.

In December 2024, in a separately filed lawsuit, the church returned to the D.C. Superior Court to enforce the 2023 judgment by seeking the transfer of ownership of the group’s common law PROUD BOYS trademark, associated goodwill, and federal registration after the defendants remained unresponsive. The plaintiff filed a motion for default judgment and injunctive relief, which the court granted by court order on February 3, 2025. Judge Tanya M. Jones Bosier ordered that all rights in the trademark be transferred to the church, that the church be granted a lien on the trademark, and that the defendant be enjoined from selling, licensing, or otherwise disposing of the mark without the church of court’s permission. All Proud Boys chapters nationwide are now effectively banned from using the “Proud Boys” designation to sell products or services.

Levies, liens, and garnishments are standard methods used to collect money judgments. It is not unheard of that a judge would attach a defaulting party’s assets to satisfy a judgment upon motion from the prevailing party. Even though the plaintiff may have more work to do before it actually receives compensation for the injury it suffered, the judge’s order should be a warning to all brand owners. An organization’s only desirable asset may be its intellectual property. And if its members commit bad acts, the organization may be liable and permanently lose its valuable property.

Fashion brands that default on court judgments or that file for bankruptcy may face a similar fate as that of the Proud Boys and lose their trademarks. They may also be held liable for the misdeeds of those subject to their control, so fashion owners should always timely pay their debts and only associate themselves with law-abiding persons.