The operators of a Clarion Inn hotel near Milwaukee Mitchell International Airport are being sued by Choice Hotels International for allegedly continuing to use the Clarion trademark without permission.
The trademark infringement lawsuit names Baba Nanak Hospitality Group, along with operators Hardeep and Parmeet Arora, as defendants.
North Bethesda, Maryland-based Choice Hotels International operates more than 7,100 franchised hotels in 40 countries.
The company’s brands include Cambria, Comfort Sleep, Clarion, Clarion Pointe, Mainstay Suits, Econo Lodge and more. Several Clarion brands are registered trademarks through the U.S. Patent and Trademark Office.
In December 2020, Choice Hotels entered into a franchise agreement with Baba Nanak Hospitality Group, which allowed the entity to operate a Clarion hotel franchise at 6331 S. 13th St. in Milwaukee.
A section of the franchise agreement states that upon termination, Baba Nanak Hospitality Group “must immediately discontinue use of all trademarks belonging to Choice Hotels,” according to the lawsuit.
Prior to October 2023, Choice Hotels alleges that Baba Nanak Hospitality Group defaulted on “material obligations” under the franchise agreement by ceasing operations. This constitutes an “abandonment” of the franchise agreement, according to the complaint.
In November 2023, Choice Hotels sent a notice of termination to Baba Nanak Hospitality Group for allegedly failing to make timely franchise payments. Choice Hotels alleges it is owed more than $345,500.
"The notice of termination further demanded that Baba Nanak tender a certificate of compliance indicating that it had de-branded and completely ceased use of the Clarion (trademark) at the subject property," according to the complaint.
Baba Nanak Hospitality Group has continued to use the Clarion trademark, according to the lawsuit.
Last June, a Choice Hotels representative conducted a site inspection and found the Clarion trademark was still in use. So, Choice Hotels sent a notice of trademark infringement to Baba Nanak Hospitality Group.
That notice demanded that Baba Nanak Hospitality Group provide written and photographic evidence that it had discontinued using the Clarion trademark. The organization has not met these demands, according to the lawsuit.
Two additional follow-up inspections found similar Clarion signage continually used at the hotel.
"The continued unauthorized use of the Clarion (trademark) by Baba Nanak has irreparably damaged, and will continue to irreparably damage, the valuable good will associated with the Clarion (trademark)," according to the complaint.
Choice Hotel has requested a jury trial and has asked to be awarded damages, in an amount to be determined by the court.
Legal representatives for Baba Nanak Hospitality Group did not immediately respond to a request for comment.
