Fashion startup JustFab has sued design startup Fab.com for trademark infringement.
Los Angeles-based JustFab, also known as Just Fabulous Inc., argues that New York City's Fab.com is infringing on its trademarks. The two companies have each raised massive amounts of venture capital and grown fairly large – JustFab has raised more than $100-million and Fab just raised $150-million in new funding.
So a name change may not be so simple now, as it might have been a couple years ago. The story was first reported by Domain Name Wire.
While the two companies have similar names, they have different business models. JustFab, founded in 2010, focuses on a $39.95 monthly subscription model, for which customers get a new item each month. Because JustFab designs and manufactures its own products it provides much lower prices. JustFab also emphasizes celebrity stylists such as Kimora Lee Simmons.
Fab.com originally started out as a gay social network, but in 2011 changed course, selling design products including fashion. It grew quickly as a place for a wide range quirky design products, including T-shirts, posters and food, and has since moved into a broader international ecommerce strategy that downplays flash sales.
JustFab argues in the complaint that Fab's use of its brand are: "likely to confuse, to cause mistake or to deceive, including because members of the public and the relevant trade are likely to believe that Just Fab is the source of, has endorsed or approved, or is somehow otherwise legitimately associated with Fab.com and its products and services."
JustFab says in a prepared statement: "We're in the business of fashion, not in the business of litigation. But we've worked very hard to establish our brand. We are not only prepared to protect our intellectual property, but we also believe we have a responsibility to our members and to members of the general public to stop any actual or likely confusion that is created when someone else uses a similar name."
Fab for its part says in a prepared statement: "Our attorneys are currently reviewing the complaint. While we are not in a position to comment with any specificity on the allegations we will aggressively defend our brand, products, and services offered to our customers worldwide."