Wednesday, May 12, 2010

Nothing good can come from a fight over a name

Sometimes, it would be best if some people would take a time-out and think things through before entering into a public spat. There are some fights that may not be worth having as both sides come out for the worst.
Take the now brewing battle between the Toronto-based independent Ms. Lube and the national chain Mr. Lube. Ms. Lube’s founder Jessica Gilbank started the service operation to offer female technicians and apprentices a supportive work environment in an industry that, according to Gilbank, is still is not inviting too many women; and a friendly place to get one’s vehicle maintained and repaired. Mr. Lube, a national chain of over 100 quick-lube shops across Canada, has accused Gilbank of trademark infringement and it pursuing legal action again her in order to protect the Mr. Lube trademark. In seeking $250,000 in punitive damages and an injunction to prevent Gilbank from continuing to use the Ms. Lube name and trademark, Mr. Lube’s statement of claim alleges “The defendant has always known the name Ms. Lube would call into mind the well-known Mr. Lube trade name and trademark. This was part of the business model, namely, to trade on the fame and reputation associated with Mr. Lube.” Gilbank, no slouch it seem when it comes to a fight, shot back claiming Mr. Lube is trying to put her out of business with high court costs and the actions on the part of the company reflect the “machismo and male chauvinism that exists in the trade.”
It has be said that Mr. Lube has every right to protect its trademark and name; something any company will do if it perceives a possible attempt by another business to infringe on the company name. Gilbank also has to know that Ms. Lube, while wonderfully cheeky along with the poster girl inspired logo, would likely catch the ire of this national franchise. Gilbank is either very brave to try something like this, or very foolish in thinking she could get away with it.
Mr. Lube and its owners, however, have to be careful. While they may very well win in the courts, the fight could backfire on them. The UK McLibel Trial, an infamous legal case, is a case in point of wining in the courts but losing in the court of public opinion. To recap, McDonald's took Helen Steel, David Morris and three others to court for allegedly libeling the company in leaflets they handed out. While three of the defendants decided to apologize to McDonald's, Steel and Morris did not and went to trial. After two-and-a-half years, the judge ruled in favor of McDonald's on some of the libel counts. However, he found that other claims in the leaflets were supportable by the evidence documented in the trial. Worse for the company, the court of public opinion had decided against the McDonald's and it suffered greatly from the worldwide bad publicity the case generated, resulting in a documentary being made of the case and of McDonald’s actions and tactics, including how the company markets and sells it products. The British government was also taken to the European Court of Human Right for not protecting Steel and Morris’ right to free expression and a fair trial.
I don’t think this legal fight will in any way be supersized as such; but it does have the potential to put the whole independent service industry in a bad light. By going after a newly-started independent operation, Mr. Lube may make itself into a bully in some people’s eyes, using the courts to drive a hard-working entrepreneur out of business. Gilbank, in her chutzpah, is not making friends amongst many shop owners who have struggled for years to overcome the ‘grease monkey’ and sexist image people have of the industry, only to be told by someone new to the industry that most are still knuckle-draggers at heart.
Both sides need to come to some agreement to avoid either of these two outcomes.

No comments:

Post a Comment