Jamdat Mobile has filed a lawsuit again Verisign, the parent company of Jamster, alleging name confusion in U.S. Jamster, which launched in U.S. in January, is causing name confusion among customers, said Mitch Lasky, CEO of Jamdat, in its Q2 earnings call today. It is alleging trademark infringement and is asking Verisign to stop using the Jamster name and also seeking damages. The trial is slated for November this year.
Lasky’s formal statement in earnings call: “We’ve worked hard since our founding in 2000 to build a world class reputation for quality, innovation and value in Jamdat brand. Since the launch of Jamster brand in U.S. earlier this year, we have encountered numerous instances of consumer confusion and have received numerous consumer complaints regarding Jamster. We believe the use of the name Jamster has caused and will continue to cause confusion in the marketplace to the detriment of Jamdat’s business. While we abhor litigation, we find it necessary to act to protect the brand we worked so hard to build.”
Legal expenses will be big in Q3 and Q4…and will have impact on its guidance for the next two quarter. It will be in the million dollar magnitude, said Lasky.
More on this later…