Viacom apparently first sent a cease-and-desist to Pixi on May 25, before the lawsuit was filed. The company also seeks $350,000 in compensatory damages, any profits from the restaurant’s sales, and a 10 percent royalty fee. 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. 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. 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.” 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. 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. The media conglomerate has also accused the pop-up of illegal cybersquatting for using the phrase “rusty krab” in its domain name. Patrick Star is referred to as Pinky, and Spongebob himself is known instead as “The Big Sponge.”Ĭourt filings from Viacom’s lawyers assert that these cheeky tweaks are not enough to distinguish the pop-up as a separate entity from the cartoon and the massive amount of officially-branded merchandise that has spun off from the twenty-year-old show. Instead of Squidward, the Rusty Krab’s dour cashier is named Octoword. These pop-ups 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. The Rusty Krab, which opened at 711 North Main earlier this year, 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. A Downtown Houston pop-up bar is being sued by Viacom, the parent company of Nickelodeon, over allegations of trademark infringement regarding the bar’s kitschy Spongebob Squarepants theme.
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