Ambush Marketing: Prime Hydration in Troubled Waters Over Olympic Trademark Use

On July 19, the United States Olympic & Paralympic Committee (USOPC) filed a suit against Prime Hydration LLC, a beverage company founded by Logan Paul and KSI, over the unlawful use of Olympic trademarks.

The Committee has alleged that Prime Hydration has used Olympic trademarks and terminology, including ‘OLYMPIC’, ‘OLYMPIAN’, ‘TEAM USA’, and ‘GOING FOR GOLD’, without USOPC’s consent, on product packaging, internet advertising, and in promotions featuring basketball player and three-time Olympic gold medalist Kevin Durant.

In its complaint, filed in the US District Court for the District of Colorado, USOPC states that it relies significantly upon licensing the use of its intellectual property to sponsors and licensees for its operations, including the funding of the US Olympic Team.

It is averred that the Ted Stevens Olympic and Amateur Sports Act confers exclusive rights upon the USOPC to commercially exploit the marks and symbols related to the Olympic Movement in the US. The reason behind conferring exclusivity was to ensure that the revenue generated could be utilised to fund the country’s involvement in the Olympic Games.

USOPC’s complaint lists its trademarks in addition to those granted by the Ted Stevens Act. It references the Committee’s agreement with Coca-Cola, which allowed the exclusive use of Olympic trademarks for beverages in the US.

Additionally, USOPC has claimed that Prime Hydration’s use constitutes trademark infringement and unfair competition, will dilute the distinctive quality of the Olympic marks, and will likely cause confusion or misunderstanding as to a) the source of products or services being promoted by Prime Hydration, and b) the company’s association with the USOPOC.

In support of its contention that the infringement is wilful, USOPC has relied on the letter dated July 10, 2024, calling upon Prime Hydration to cease the infringement. It is stated that Prime Hydration continued to infringe upon the Committee’s trademarks despite receipt of this letter and numerous requests.

USPOC has demanded a trial by jury and has sought for the past, current, and future use of the exclusive marks to be declared as amounting to trademark infringement, false advertising, and unfair competition. The Committee has requested an order restraining the commercial use of infringing marks. Further, USOPC has also sought products with the infringing marks to be recalled, profits made by the defendant by the sale of the infringing products, damages sustained by USOPC, and lost sponsorship costs to be awarded to USOPC, along with reasonable attorneys’ fees.