CoolBrands International Inc has filed a lawsuit against Weight Watchers International Inc and Wells’ Dairy in response to its alleged violation of Weight Watchers’ master license agreement (MLA) with CoolBrands.
That agreement gives CoolBrands the exclusive right to use the Weight Watchers trademark in connection with the manufacture, sale, and distribution of ice cream and frozen novelty products until Sept 28, 2004. After that date, the MLA confers upon CoolBrands a non-exclusive right to continue using that trademark in the manufacture, sale, and distribution of ice cream and frozen novelty products until Sept 28, 2005.
Filed in New York Supreme Court in Nassau County, the suit seeks to recover compensatory and punitive damages of $360 million from Weight Watchers and Wells’ Dairy.
The suit charges that Weight Watchers unlawfully entered into a licensing agreement July 28, 2004, with Wells’ Dairy, violating the terms of its agreement with CoolBrands. According to CoolBrands, the firms filed and publicized a legal action in which Weight Watchers sought in effect to rewrite the MLA and prematurely terminate it.