Penthouse, W. Hollywood Nightclub Settle Trademark Suit

Nov 14, 2016 2:04 PM PST

WEST HOLLYWOOD, Calif. — Penthouse Global Media and the owners of the legendary Factory Nightclub in West Hollywood have quietly settled a trademark infringement suit that claimed the sprawling club poached the “Penthouse” mark for various events.

In August, Penthouse counsel filed suit against the operators of the Factory Nightclub after they found that the massive club branded itself with various "Penthouse" names, including "Penthouse West Hollywood," "Penthouse DayClub Sundays," "PH Day Club -- Luxury," "Penthouse Day Club" and "PH Hollywood."

But several months later, Penthouse and Factory Nightclub notified the court that a settlement was reached and the case has been taken off calendar.

On Monday, Factory Nightclub counsel Sagar Parikh confirmed to XBIZ that Penthouse and Factory owners Nathan Goller and Joe Villa have reached a settlement agreement in principle and have completed documentation of the deal. Parikh, however, did not reveal any terms of the settlement.

“Unfortunately, I cannot provide any comment other than the case was settled and resolved,” Parikh said.

Many in the adult biz are quite familiar with the Factory Nightclub because it has been home of the annual Cybersocket Web Awards for years.

The club, one of the most successful and longest-lived entertainment venues in the Los Angeles-area, also is well known because it is situated across from the street from The Abbey, West Hollywood's highest-grossing bar and club.  

Penthouse first took notice of the Factory Nightclub's use of the trademarked name on the club in 2014 and later issued a cease-and-desist letter to its operators, according to the suit.

The suit also took note of Penthouse' s trademarked name used in two sites the club operators use — PHWestHollywood.com and PenthouseWestHollywood.com — to promote the nightclubs and "dayclubs."

At post time PenthouseWestHollywood.com does not resolve but PHWestHollywood.com does.

Penthouse noted that the adult entertainment company, owned by Kelly Holland, has registered trademarks specifically to combat appropriation, including those marks relating to nightclubs, bars and restaurant services.

Penthouse sought damages in the suit, including up to three times damages sustained by plaintiff and three times defendants' profits. It also was seeking injunctive relief prohibiting defendants from future unauthorized use of the Penthouse marks, as well as attorneys fees.

Penthouse's counsel did not respond to XBIZ for comment on the story by post time.

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