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Penthouse Sues West Hollywood, Calif., Club for Infringement

Penthouse Sues West Hollywood, Calif., Club for Infringement
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Jun 27, 2016 3:28 PM PDT    Text size: 

WEST HOLLYWOOD, Calif. — Penthouse is moving forward with a trademark infringement suit against one of the most recognizable nightclubs in the city of West Hollywood.

The operators of the Factory Nightclub, who run one of the most successful and long-lived entertainment venues in the Los Angeles-area city, have been hit with a suit that claims the property appropriated the famous Penthouse mark for some of its club activities.  

Penthouse Global Media, in its federal suit, claims Factory Nightclub’s owners has branded the massive club various “Penthouse” names, including “Penthouse West Hollywood,” “Penthouse DayClub Sundays,” “PH Day Club — Luxury,” “Penthouse Day Club” and “PH Hollywood.”

Many in the adult entertainment industry are quite familiar with the Factory Nightclub because it has been home of the annual Cybersocket Web Awards for years. The club also is well known because it is situated across from the street from West Hollywood's highest-grossing bar and club, The Abbey.

Penthouse first took notice of the Factory Nightclub’s use of the trademarked name on the club in 2014 and later issued a cease-and-desist letter to its operators, according to the suit. 

The suit also takes note of Penthouse’s trademarked name used in two sites the club operators use — PHWestHollywood.com and PenthouseWestHollywood.com — to promote the nightclubs and “dayclubs.”

Penthouse also claims that Factory Nightclub’s promote the property using Penthouse marks on Twitter, Instagram and Facebook.

Penthouse notes that the adult entertainment company, owned by Kelly Holland, has registered trademarks specifically to combat appropriation, including those marks relating to nightclubs, bars and restaurant services.

Penthouse seeks damages in the suit, including up to three times damages sustained by plaintiff and three times defendants’ profits or up to $2 million per counterfeit mark.

It also is seeking injunctive relief prohibiting defendants from future unauthorized use of the Penthouse marks, as well as attorneys fees.

A status conference was set today for Aug. 4 at federal court in Los Angeles to decide the direction in the case.

Penthouse’s Holland did not respond to XBIZ comment for this story. Reaction from the Factory Nightclub’s attorney, Sagar Parikh, was not attainable by post time. 

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