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News (Media Awareness Project) - US CO: Reefer Madness: Alpine Bank Sues Alpine Dank
Title:US CO: Reefer Madness: Alpine Bank Sues Alpine Dank
Published On:2011-04-05
Source:Aspen Times, The (CO)
Fetched On:2011-04-08 06:03:36
REEFER MADNESS: ALPINE BANK SUES ALPINE DANK

Bank Says Pot Shop Has Sullied Its Name.

ASPEN -- Alpine Banks might be in the business of dealing green, but
not the kind sold by Alpine Dank.

And that's why the Glenwood Springs-based financial institution, which
runs banks throughout the Roaring Fork Valley and Western Slope, wants
to snuff out the Alpine Dank name.

On Friday, Alpine Banks of Colorado filed a lawsuit in Denver federal
court against Alpine Dank and its founder, Jeffery Lessard of Basalt
and Telluride. Alpine Banks claims that Lessard has created confusion
in the marketplace with the Alpine Dank name, and seeks a court
injunction to stop Lessard from using the marijuana-inspired moniker.

The problem with Alpine Dank, the bank contends, is that its image and
logo "give rise to the mistaken belief that [Alpine Dank's] goods are
sponsored, endorsed or somehow affiliated with Alpine Banks and, in
addition, that Alpine Banks has taken a stand and supports and/or
plays a role in the current public policy debate relating to
legalizing marijuana."

Lessard, who runs a pot shop in Telluride, could not be reached for
comment Monday. He once was the general manager of the short-lived
Basalt Alternative Medicine in Basalt, which closed in November after
its lease expired.

But Lessard, according to exhibits in the lawsuit, has been well aware
of Alpine Banks' effort to kill the Alpine Dank name. In response to a
Feb. 25 letter from Alpine Banks' attorneys demanding he cease and
desist using the name Alpine Dank, Lessard fired back saying it would
take a payment of at least $1 million for him to stop.

"Alpine Dank has spent several years building a brand that is quite
different from that of Alpine Bank," he wrote in a letter dated March
8. "The word Alpine is certainly not owned by Alpine Bank and in fact
is a prized word use by many high country businesses throughout
Colorado. The word Dank is used in the marijuana industry to describe
the quality of products whether it's marijuana or the products
associated with it therein. The fact that bank and dank are similar
and they even rhyme is merely a coincidence that I'm sure your client
regrets not being able to have been present for, when the English
language was first being created."

The bank's attorneys, in a letter dated March 15, retorted: "We
disagree. ... Business owners are responsible for selected business
names, trade names and trademarks that do not infringe upon, or are
likely to dilute the distinctive quality of another's trademark. As
such, there is no defense of 'mere coincidence' under the law,
and therefore no such defense exists in the present case."

In its lawsuit, Alpine Bank claims its reputation has been damaged
because of Alpine Dank, "which is confusingly similar to the Alpine
Bank mark in terms of appearance, sound and meaning. The name Alpine
Dank is identical to the mark Alpine Bank, with the exception of the
first letter of the second word."

But Lessard, in his letter, countered that "the trade name Alpine Dank
is my intellectual property inspired by the industry I work in, the
marijuana industry, just as your client's name was inspired by their
industry, the banking industry. I don't see how either business can be
confused with the other. Your client's a bank and my company is a
novelties business."

Alpine Dank, in its logo, used the identical font that Alpine Bank
uses with its corporate logo. And instead of using a tree in its logo
like Alpine Bank does, Alpine Dank uses a marijuana leaf, the suit
says.

"Upon information and belief, Defendants' selection and adoption of
the name Alpine Dank, the circular logo depiction of a marijuana leaf
and the font use for the name was calculated purposefully to usurp the
goodwill and reputation that Alpine Banks has labored to develop,
nurture and protect for nearly 30 years," the suit says.

In his letter, Lessard conceded that he would change his font and
logo; but Alpine Bank contends he continues to use it.

Alpine Banks' suit goes on to say that despite Colorado law that makes
marijuana legal for medicinal purposes, the U.S. Department of Justice
"has recently enunciated its position that it believes all marijuana
dispensaries are illegal under federal law and the prosecution of
individuals and organizations involved in the trade of any illegal
drugs, including marijuana, is a core priority of the Department of
Justice."

That point is relevant, the suit suggests, because the U.S. Patent and
Trademark Office has said it won't grant federal trademark
registrations to entities that deal with medicinal marijuana related
goods and services. Alpine Dank is not a registered trademark, but the
monikers Alpine Dank, Alpine Dank Seed Company and Alpine Dank Edibles
are registered trade names with the Colorado Secretary of State.

Alpine Bank's lawsuit makes five claims for relief: Unfair
competition, federal dilution by tarnishment, trademark infringement,
unfair competition under Colorado law, and misappropriation of
business values under Colorado common law.

The suit seeks a jury trial and an unspecified amount in treble
damages.
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