Monday, July 17, 2017

Business Espionage: Hotel Wars

When it comes to appealing to Millennials — of which there are now 75.4 million in the United States alone — hotel companies are doing all they can to launch wallet-friendly, yet still-stylish accommodations that emphasize such features as co-working spaces, communal stadium seating, artisanal goods, and craft beers.

...now, one U.S. hotel company is suing another in an effort to either protect its intellectual property rights...

On July 12, Red Lion Hotels filed a lawsuit against Hard Rock International for “trade dress infringement, injury to business reputation, and unfair competition.”

Red Lion alleges that Hard Rock’s newest hotel brand, Reverb, is a carbon copy of its own Hotel RL brand, which it launched in October 2014 and currently has seven properties throughout the United States...

Red Lion, however, alleges that these similarities aren’t just the result of a shared effort to appeal to Millennials; it’s the fact that Red Lion and Hard Rock hired the same hotel consulting group to develop their respective brands...



This isn’t the first time a hotel company has accused a competitor of intellectual property theft. Starwood Hotels & Resorts sued Hilton in 2009, alleging that two of its former executives who joined Hilton had conspired to steal secrets from W Hotels to help Hilton create its own version of W, to be called Denizen.

Hilton later paid Starwood $75 million to settle civil charges of corporate espionage, and agreed not to launch or acquire a lifestyle brand like Denizen for two years. more