Italian Bike Maker Secures Trademark in Distributor Dispute (1)

An Italian bicycle frame manufacturer can keep exclusive U.S. rights to its name because it never formally agreed to share trademark rights with a business partner, the Third Circuit said in a case highlighting the importance of signed agreements.

Sarto S.r.l. owns the “Sarto” brand of bicycles, despite claims by distributor Liger6 LLC that Sarto verbally agreed to share trademark rights while Liger6 invested heavily in promoting the frames, the U.S. Court of Appeals for the Third Circuit said. The companies’ relationship soured before they entered into a formal contract, largely because Liger6 registered the trademark with dual owners, allegedly ...