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Two Golf Superstars Can’t Avoid Litigating Trademark Claims in California

  • Two Golf Superstars Can’t Avoid Litigating Trademark Claims in California

    The effort by two of golf’s biggest names to have a trademark infringement claim litigated in Delaware instead of California has been dismissed by a Delaware federal district court judge. Tiger Woods and Rory McIlroy, along with a sports executive, formed a virtual, interactive golf league in partnership with the PGA, known as TGL. TGL comprises six teams of professional golfers—one of the teams is the Los Angeles Golf Club (the “Golf Club”). TGL owns trademarks related to the Golf Club in connection with “golf services and related products and services,” including stylized versions of the following marks: “Los Angeles Golf Club,” “LAGC,” and “LA Golf Club” (collectively, the “LAGC Marks”). However, another golf company contends that several of the LAGC Marks infringe on its marks and has filed a lawsuit.

    LA Golf Partners “manufactures and sells golf clubs, golf club shafts, and related products such as golf balls, putter covers, and putter grips” under marks it owns, including the marks “LAGP,” “LA Golf Club,” and “LA Golf” (collectively, the “GP Marks”), which are similar or identical to some of the LAGC Marks. Golf Partners argues that certain LAGC Marks conflict with some of its GP Marks and has asked a federal judge in California to resolve the matter. TGL disputes that any of its LAGC Marks infringe on the GP Marks and asked a federal judge in Delaware to issue a declaratory judgment to that effect. Both companies are incorporated in Delaware.

    TGL announced its virtual league in August 2022, with plans for an official launch in January 2024. Golf Partner’s counsel sent TGL a letter on October 18, 2023, accusing it of trademark infringement, and offered to resolve the matter absent court intervention—counsel for the parties engaged in discussions that ultimately proved fruitless. TGL moved the launch date back to January 2025 because of damage to the arena where the event was to be held. As the impending launch date neared, and with Gold Partner’s concerns unresolved, its counsel sent a second letter to TGL. The second letter stated unequivocally that it was “a final demand [for TGL] to cease and desist from the intentional and damaging infringement” of the GP Marks and that it was “prepared to continue to spend what it takes in each of these jurisdictions to protect its rights — for as long as it takes.”

    TGL did not respond to the letter. Instead, it filed a suit in Delaware on the first Monday after it received the letter, where it sought a declaratory judgment that, among other things, its use of the LAGC marks did not infringe on Gold Partner’s rights to the GP Marks. A few weeks later, Golf Partners commenced a civil action in California federal, alleging, among other things, that TGL was liable for trademark infringement.

    The Delaware court accused TGL of forum shopping by running to its court first to request a declaratory judgment when it knew that Gold Partners was imminently going to sue it for trademark infringement when it failed to respond to its second letter. Forum shopping occurs when a litigant bypasses a logical or traditional venue to file suit, opting instead for a court that it perceives to be more favorable. The Delaware court stated that it had discretion whether to hear TGL’s anticipatory litigation for declaratory judgment. Although a court where an action is filed first will generally have priority over a second court where a separate action is filed involving the same parties and controversy, the first court does not have to exert its priority where to do so would be to reward the plaintiff in the first action for forum shopping in order to avoid being a defendant in the second action. And even though both parties were incorporated in Delaware, the court found that California had a closer connection to the claims given that Gold Partners is headquartered and the Golf Club operates there. Accordingly, the Delaware court dismissed the action, and now Tiger Woods, Rory McIlroy, and the rest of the TGL leadership must face the Gold Partners’ lawsuit in California.