The National Football League (NFL) settled a trademark infringement claim against headphone distributor Zeikos on Monday, March 26.
In April 2014, the NFL and Zeikos had entered into a licence agreement i for two years.
In November 2017, after the NFL accused Zeikos of not fulfilling its contractual agreements, the league filed a complaint for trademark infringement and breach of contract at the US District Court for the Southern District of New York.
The licence agreement allowed Zeikos to use the NFL’s trademarks relating to its 32 professional American football teams. The licensed products included earphones, headphones, portable speakers, and video game controllers.
Many of the licensed trademarks are protected. The ‘NFL Shield’ logo is protected by several registrations including US registration numbers 3,581,281; 4,682,242; and 3,138,589.
Under the licence agreement, Zeikos was obligated to report the royalties that it owed the NFL on a monthly basis but, according to the football league, Zeikos had failed to make many of its payments and fulfil its reporting obligations.
Specifically, the NFL claimed that Zeikos had failed to make a payment of $185,000 in royalties and has not made any payments to the NFL since November 2014.
In retaliation to the alleged failure to pay, the NFL said that it was terminating the agreement in a letter dated October 2015.
But, despite the termination, the headphone distributor continued to sell the NFL licensed products, according to the NFL.
At the time of filing its complaint, the NFL was seeking damages and an injunction.
On Monday, US District Judge Gregory Woods said that the parties had informed the court that the case was settled.
The action has been conditionally discontinued without prejudice and without costs. The NFL is able to apply for restoration of the action if the agreement is not honoured.