The Eagles’ Hotel California Trademark Case: Who Will Win ’In the Long Run’? Roberta Horton - Consumer Law Blog
go to original May 12, 2017

There may be “plenty of room” at the Hotel California in Todos Santos, Mexico, but The Eagles aren’t checking in any time soon (Hotel California Todos Santos/Facebook)

On May 1, Eagles, Ltd. (The Eagles), which own all trademark rights associated with the famous rock band of the 1970’s, sued Hotel California Baja, LLC in U. S. District Court for the Central District of California for trademark infringement and common law unfair competition. A copy of the Complaint can be found here. The defendant, located in Todos Santos, Mexico, originally used the name “Hotel California” in the 1950’s, but then changed its name to “Todos Santos Hotel”, and also changed ownership.

According to The Eagles’ complaint, the current owners of the Mexican hotel are selling merchandise to U.S. consumers displaying the “Hotel California” mark in which The Eagles have common law trademark rights. The band’s music (including its legendary “Hotel California” song) is also piped throughout the hotel, allegedly making guests believe that the hotel is connected with or sponsored by the famous rock band. In short, through capitalizing on the band’s fame, the defendants are giving the Eagles “A Heartache Tonight.”

While the Eagles have just filed suit, this case potentially raises a host of issues and is thus one to watch. For example, who really came first? Will the Mexican hotel counterclaim, alleging that it has prior rights in the name? The defendant hotel actually began using “Hotel California” back in the 1950’s, long before Don Henley and Glenn Frey founded The Eagles and became “The New Kids in Town”. But did the defendant abandon any trademark rights it acquired in the hotel’s name through nonuse? Under the U.S. federal trademark statute, the Lanham Act, abandonment of a trademark may be presumed after three years of non-use. See 15 U.S.C. §1127. The apparent long hiatus between when the defendant hotel first used “Hotel California”, and when the new owners took up the name, suggests that any priority argument the defendant asserts would not succeed.

..Although this case is in its early stages, the Eagles will likely “Take it to the Limit” to protect their rights.

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