Omnicom Group is being sued for using the name “Fuse” for the new sports and entertainment marketing agency that it launched last week.
The trademark infringement suit was filed on March 29 by Fuse LLC, a 12-year-old independent agency that specializes in youth-culture marketing, including sports, music and fashion. That shop, based in Burlington, VT, contends that Omnicom has no right to use the Fuse name.
Omnicom launched its new division, Fuse Sports & Entertainment Group, on March 28. The unit combines four of Omnicom’s existing sports and entertainment businesses under one roof, led by CEO Steve Grubbs.
When executives at Fuse LLC caught wind of the new shop, they contacted Omnicom to demand that the holding company immediately discontinue using the name Fuse, which Fuse LLC trademarked in 1999. Fuse LLC said that Omnicom refused, so the agency filed suit.
The lawsuit charges Omnicom Group and Omnicom Media Group with trademark infringement, unfair competition and “false designation of origin,” according to court documents. The suit argues that allowing the name to stand would cause confusion in the marketplace, since both agencies offer similar services and even share two clients, Pepsi and Sony PlayStation.
According to court documents, Fuse LLC got phone calls from prospective clients who thought the agency had been acquired by Omnicom. The calls came shortly after Omnicom’s announcement, Fuse LLC said.
Fuse LLC is seeking an injunction on the name and unspecified monetary damages. Omnicom has not yet officially responded to the suit, and declined to comment on the case.
“We find it terribly disappointing that Omnicom, one of the largest corporate media services conglomerate with $11 billion in sales, would compound their original problem of using our name by now attempting to outspend us in legal fees until we give up our ownership of our name,” said Fuse LLC partner Bill Carter in a statement. “Agencies across the country—especially other small independents—can understand … that we will never allow Omnicom to use our name, no matter what the cost, and no matter how long this takes; we will defend ourselves from them as if our professional lives are at stake, because in fact they are.”
The new Fuse Sports & Entertainment Group is part of Omnicom’s media arm, Omnicom Media Group, which consolidated its North America sports and entertainment shops to form one full-service agency to provide consulting, strategy development, content creation and distribution.
Grubbs was brought in from PHD North America, another division of Omnicom Media Group, to run the new shop, which has 20 offices in North America, Europe and Asia Pacific. (Fuse LLC, by contrast, has 35 employees in its single office.)
The four shops that Omnicom brought together are: Optimum Entertainment (TV, film and digital marketing for brands); Optimum Sports (sports media-buying); Full-Circle Entertainment (content development and production that integrates brands); and Highway Entertainment (content distribution). The executives leading each business remain in charge of their disciplines, reporting to Grubbs.
This isn’t the first time Omnicom has tangled with Fuse LLC. Omnicom tried to buy Fuse LLC and the trademark on multiple occasions, according to court documents.
Fuse LLC ranked No. 81 in the 2006 PROMO 100 with net revenues of $2.8 million for 2005, up 46% from 2003.
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