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EdFed Corporation Sues Educational Federal Credit Union for Unauthorized Use of Service Mark

EdFed Corporation has taken legal action against Educational Federal Credit Union (EFCU) for unauthorized use of its service mark. The complaint was filed in the United States District Court for the Southern District of Florida on March 10, 2022.

EdFed filed a service mark application in March 2006 for student loan services, which was approved in January 2007. Although the registration was canceled in August 2013, EdFed maintains that it continued to use the mark with its services.

Background on EdFed’s Service Mark and Allegations Against EFCU

According to the complaint, EFCU registered the domain name in 2018 and began using Infringing Marks, including EDFED, for credit union services without obtaining EdFed’s consent. The complaint alleges that EFCU’s use of the marks is likely to cause confusion among consumers and has damaged the goodwill of EdFed’s EDFED service mark.

EdFed’s complaint asserts a first cause of action for False Designation of Origin, 15 U.S.C. § 1125(a), arguing that EFCU’s use of the Infringing Marks creates a false and misleading impression that EFCU’s services are connected with EdFed and is likely to cause confusion, deception, and mistake among consumers.

The complaint also alleges that EFCU’s conduct was intentional, willful, and malicious, with a deliberate intent to trade on the goodwill associated with the EDFED mark. EdFed asserts that EFCU’s unauthorized use of the mark has resulted in substantial sales and profits for the credit union.

EdFed’s Claims Against EFCU and Request for Relief in Service Mark Infringement Lawsuit

EdFed is seeking injunctive relief and damages, including any profits obtained by EFCU from its use of the Infringing Marks, as well as attorney’s fees. The complaint emphasizes the importance of safeguarding intellectual property rights, including service marks, and the severe consequences for companies that engage in unauthorized and infringing use of another company’s mark.

The case is currently pending in the United States District Court for the Southern District of Florida, and EFCU has yet to respond to the complaint. EdFed has requested a jury trial and seeks an injunction to prohibit EFCU from using the Infringing Marks, as well as damages and profits.

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