Discus Dental has filed a lawsuit in Los Angeles federal court against BSML, charging BSML with breach of contract and violating Discus trademark rights, the company announced.
In its lawsuit, Discus seeks to end a license agreement with BSML for use of the Discus-owned BriteSmile trademark, a court order prohibiting BSML from future use of the trademark, and damages to its intellectual property rights associated with the trademarked brand.
In 2006, Discus purchased substantially all assets of BSML's predecessor company, BriteSmile, and its related entities, for $35 million. Discus currently owns the rights to the BriteSmile trademark in connection with teeth-whitening services offered in dental offices, where it is the exclusive supplier of BriteSmile teeth-whitening products and procedures.
As part of the 2006 transaction, Discus agreed to provide BSML with limited rights to use the BriteSmile trademark and related patents for certain teeth-whitening procedures that BSML offers in its spa locations. BSML also retained the limited right to use the trademark for certain types of toothpaste, mouthrinse, and teeth-whitening pens that it offers over the Internet and on the QVC home-shopping network.
The lawsuit alleges that BSML has breached the license agreement and violated Discus trademark rights by harming the goodwill, reputation, and value of its BriteSmile trademark based on various BSML actions, including reports that it has charged consumer credit cards for services never performed and closed BSML spa locations without notice and refused to refund prepaid appointment charges. The lawsuit also alleges BSML improperly has sought its own trademark registrations on variations of the BriteSmile mark in further breach of the license agreement.
"Regrettably, we believe that BSML is conducting its business in a way that damages the image and reputation of our BriteSmile brand," said Robert Cartagena, chief operating officer for Discus, in a press release. "The apparent misconduct of BSML seriously impairs an asset for which we paid a significant sum and is not representative of how Discus works with its valued customers."
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