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ViacomCBS Wins Lawsuit Against 'SpongeBob'-Themed Pop-Up Bar in Houston for Trademark Infringement
Update (6/10/22) - A Texas federal judge has ordered an owner of a now-closed Rusty Krab pop-up restaurant and bar to fork over $6 million as part of an intellectual property suit from Viacom International over SpongeBob SquarePants. According to a Wednesday final judgment, U.S. District Judge Ewing Werlein Jr. awarded Viacom $6 million in copyright damages against Pixi Universal, which does business as Kefi HTX.
The decision — which ruled on a stipulated consent judgment and permanent injunction — said Pixi had to transfer certain website domain names to Viacom. For more on the outcome, visit Law360.
Houston pop-up restaurant and bar The Rusty Krab infringes ViacomCBS’s intellectual property rights in the SpongeBob SquarePants franchise, the company says in a lawsuit filed in federal court in Texas.
The Rusty Krab bills itself as a SpongeBob SquarePants-inspired experience for the ultimate Bikini Bottom fan, complete with multi-room photo ops, daily activities like scavenger hunts, and tropical food and cocktails with names like chum nuggets (buffalo chicken bites) and Pinky the Star’s Hideaway, a drink make with peach Ciroc, Malibu and Sprite.
The Rusty Krab was opened by owner Sam Chand in the Capitol Loft area of Houston, Texas, the same space where a Harry Potter pop-up shop was opened years prior. The bar, by Pixi Universal, sells SpongeBob-themed food and drinks, but clarified that it was “not affiliated, associated, authorized, endorsed by, or in any way officially connected with Nickelodeon, or the SpongeBob brand directly,” according to a disclaimer. Instead, Chand describes it as an “artistic adaptation recreation of an amazing series that added value to our childhood.”
Pop-ups like the Rusty Krab try to circumvent copyright laws with sideways references to the original inspiration — Rusty Krab is of course a reference to Krusty Krab, the fictional fast food restaurant on the show. Instead of Squidward, the Rusty Krab’s dour cashier is named Octoword. Patrick Star is referred to as Pinky, and SpongeBob himself is known instead as “The Big Sponge.”
However, ViacomCBS, which owns the rights to all SpongeBob IP, is suing the Rusty Krab over allegations of trademark infringement by using names, images, characters and re-creations from the show throughout its restaurant and on its menu, and according to the suit, even advertises the place as "Houston’s VERY FIRST Spongebob Squarepants Inspired Pop Up Restaurant and Bar!".
In a lawsuit filed in the United States District Court on August 11, Viacom alleges that the pop-up is “a bad-faith attempt to capitalize on the success of the SpongeBob SquarePants franchise,” arguing that the restaurant’s branding is specifically targeted towards children despite serving a menu of mostly alcoholic beverages. According to Viacom, associating any SpongeBob marks with alcohol is a violation of its licensing terms for any product, much less an unauthorized pop-up.
The lawsuit further alleges that the Rusty Krab’s use of trademarked SpongeBob imagery on its social media pages has deceived parents into thinking that the bar is officially affiliated with the show, and that it has received “numerous public complaints from concerned parents who, after paying high ticket prices believing they would get an authentic SpongeBob SquarePants experience, voiced disgust at the Infringing Restaurant’s purportedly unsanitary conditions and unsafe food.”
The media conglomerate has also accused the pop-up of illegal cybersquatting for using the phrase “rusty krab” in its domain name.
Among the many alleged infringements, Viacom says Rusty Krab's drink menu uses numerous well-known hallmarks of the beloved animated series -- like "Pineapple Under the Sea," "Bikini Bottom," "Secret Formula" and "I’m Ready" -- to sell alcohol, which Viacom claims would violate its licensing policy for the trademarks on its kid’s show.
Numerous social media reviews of the pop-up refer to high ticket prices on top of additional charges for middling food and drinks, mandatory 18% gratuity even for small parties, plus worn and dirty costumes, soiled couches, insulation hanging from holes in the ceiling, and other issues.
Chand explained that he only opened the pop-up bar for people to have fun and enjoy the space that he created using the popular kids show properties.
“The most important thing for me is for people to have fun here. They spend a lot of money to come through. We have people traveling from out of state just to experience this,” he says. “I want them to be satisfied with the photo ops, the exhibits, the interactive games, the food and drinks — the whole enchilada.”
Viacom argues that these conditions harm the “trusted Nickelodeon brand,” and have asked that the pop-up’s parent company, Pixi Universal, immediately cease using any SpongeBob imagery, trademarks, or names affiliated with the show. The company also seeks $350,000 in compensatory damages, any profits from the restaurant’s sales, and a 10 percent royalty fee. The company is also suing to stop the pop-up shop from doing further business.
Viacom apparently first sent a cease-and-desist to Pixi on May 25, before the lawsuit was filed. The very next day, the restaurant announced it was extending its run through August 1. As of press time, tickets for the pop-up are now available through the end of 2021.
A disclaimer on the Rusty Krab’s website reads thusly: “We are not affiliated, associated, authorized, endorsed by, or in any way officially connected with Nickelodeon, or the Spongebob brand directly, or any of its subsidiaries or its affiliates. This is Kefi HTX’s artistic adaptation recreation of an amazing series that added value to our childhood!”
This isn’t the first time that Viacom has sued a Houston-area restaurant over its use of SpongeBob’s image. In 2017, the company sued a pop-up called the Krusty Krab before it could even open its doors in Kemah. In that case, the restaurant owner claimed that he’d never heard of SpongeBob, and decided it “wasn’t a big enough deal” to reconsider changing the name.
TMZ, who first reported on the lawsuit, spoke to Sanju “Sam” Chand, the owner of the pop-up. Chand said the bar was intended strictly as a parody, and that there has been no consumer confusion.
Chand’s company has not yet responded to the lawsuit in court.
The complaint can be read in full here.
Originally published: August 13, 2021.
Nickelodeon's Live-Action ‘Loud House’ Series Begins Filming in Albuquerque, New Mexico
Nickelodeon's hit series The Loud House is making the leap from animation to live action.
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| Nickelodeon's hit series “The Loud House” is making the leap from animation to live action with a new series from Paramount+. It will film in New Mexico. |
On Wednesday (June 9), the New Mexico Film Office announced the Paramount+ project filming in New Mexico.
The Loud House series is based on the Emmy Award-winning animated show. It follows Lincoln Loud, an 11-year-old boy with 10 sisters, as he navigates everyday life with such a large family. Known as the “Man with a Plan,” Lincoln enlists the help of his best friend Clyde McBride to tackle the obstacles and mayhem that they encounter during their daily adventures.
“As one of Nick’s most beloved animated franchises, The Loud House has made its way into the hearts of millions of fans across the globe,” said Shauna Phelan, co-head of Nickelodeon & Awesomeness Live-Action. “When we brought the animated world of Royal Woods to life with A Loud House Christmas, it instantly became a holiday favorite for both new and loyal fans alike, and I just know that they will love what our amazing creative team is preparing for this new live-action series.”
According to the New Mexico Film Office, the production will employ approximately 125 New Mexico crew members, 20 New Mexico principal actors, and approximately 400 New Mexico background talent.
Cast members set to reprise their roles are Wolfgang Schaeffer as Lincoln Loud, Jahzir Bruno as Clyde McBride, Brian Stepanek as Lynn Loud Sr., Sophia Woodward as Luna Loud, Catherine Ashmore Bradley as Luan Loud, Aubin Bradley as Lucy Loud, Ella Allan as Lola Loud, Mia Allan as Lana Loud, and Lexi Janicek as Lisa Loud.
New cast members set to join the series are Jolie Jenkins as Rita Loud, Eva Carlton as Leni Loud, and Annaka Fourneret as Lynn Loud.
“I am super excited to bring this large and loud production to Albuquerque,” said Jonathan Judge, director and executive producer of the series. “I’ve really enjoyed meeting local crew and collaborators and I’m looking forward to the journey of bringing this series to life.”
'Under the leadership of governor Michelle Lujan Grisham, New Mexico has become a film and television production powerhouse and we are coming off another record fiscal year for direct spending by the industry,' said Alicia J. Keyes, economic development department cabinet secretary.
'Dollars spent during the 10-episode series of The Loud House will circulate throughout the economy and help small businesses grow their revenue and create more jobs,' she added.
New Mexico State Film Office director, Amber Dodson said: 'New Mexico is a film and television hub for productions of all scales and sizes. We are very pleased to have this live-action Nickelodeon series, based on a globally-recognised property, choose our beautiful state, and employ our top-notch New Mexican crew to bring this series to the screen.'
She continued: 'As one of Nick’s most beloved animated franchises, The Loud House has made its way into the hearts of millions of fans across the globe.”
The live-action Loud House series is slated to premiere on Paramount+ later this year.
Watch The Loud House & The Casagrandes on Nickelodeon and Paramount+!
Watch A Loud House Christmas on Paramount+!
Watch The Loud House Movie on Netflix!
Subscribe to the official The Loud House & The Casagrandes YouTube channel!: https://at.nick.com/LoudCasaSubscribe
More Nick: ‘A Loud House Christmas’ on Nickelodeon Becomes TV’s Top Kids Entertainment Telecast of 2021!
Originally published: June 09, 2022 at 00:11 BST.
Additional source: KFTV.
Nickelodeon to Film New Movie in Utah
Nickelodeon is set to film a new movie in Utah!
The currently untitled movie is one of 13 productions approved Thursday, June 9 by the Governor’s Office of Economic Opportunity (Go Utah) Board under Utah’s newly restructured rural tax incentive program that will bring an estimated $142.5 million to the state. Additional productions include an Untitled Taylor Sheridan Series for Paramount+; Kevin Costner’s period Western, Horizon: An American Saga; and Joy to the World, a new feature from Jerusha Hess, co-writer of Napoleon Dynamite.
The Nickelodeon film will have an estimated budget of $9,966,336.
Filming locations for the movie are still to be determined.
It is thought that the Nick Flick will air on Nickelodeon and/or Paramount+, rather than be released in theaters.
Stream all your favorite Nickelodeon shows old and new on Paramount+. Try it FREE at ParamountPlus.com!
Paramount Set To Release First Nickelodeon NFTs During Summer 2022
Paramount is slated to debut its first set of Nickelodeon NFTs (non-fungible tokens) very soon
Nickelodeon is about to dive into the metaverse with the release of its first batch of NFTs, with Paramount.xyz, the online portal to access Paramount’s iconic IP and cherished franchises in the form of non-fungible tokens teasing that launch of Nickelodeon NFTs is coming soon.
Currently, the Paramount NFT portal offers Star Trek and Top Gun: Maverick NFTs.
Not much is currently known about the first batch of Nickelodeon NFTs, however, one of the promo images on the portal teases that "Season Zero" will focus on retro Nickelodeon properties, such as Rugrats and Hey Arnold!.
Update (6/10) - The first batch of Nickelodeon NFTs will be released during summer 2022!
The 90s called ☎️
— nickelodeon_nft (@nickelodeon_nft) June 9, 2022
They want your attention back ⏪📺
If you’re reading this…you’re early#NickelodeonNFT pic.twitter.com/VJBGUbTjAS
Earlier this year, Paramount applied to register the trademark for SpongeBob SquarePants NFTs with the United States Patent and Trademark Office (USPTO), with the application still pending.
The news follows Paramount announcing a strategic partnership with leading non-fungible token (NFT) company RECUR last year to create a fan-focused platform that will bring the company’s iconic IP and cherished franchises that transcend generations to the space. Through this agreement, Paramount and RECUR created Paramount.xyz, a unified environment where fans can buy, collect and trade NFTs as digital products and collectables across Paramount's leading portfolio of consumer brands, including Nickelodeon, BET, CBS, Comedy Central, MTV, Paramount Pictures and Showtime Networks Inc.
The news also follows Funko releasing Nickelodeon NFTs earlier this month, which sold out within hours. However, SpongeBob was missing from the first wave.
Stream all your favorite Nickelodeon shows old and new on Paramount+. Try it FREE at ParamountPlus.com!
Originally published: May 26, 2022 at 02:26 BST.
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