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22 July 2024

Olympics Lawsuit: Logan Paul's Brand In Hot Water

Days before the Paris Olympics, Logan Paul’s Prime faces trademark infringement lawsuit from U.S. Olympic Committee

Logan Paul’s energy drink brand, Prime, co-founded with fellow YouTuber KSI, is facing a courtroom showdown with the U.S. Olympic and Paralympic Committee. The lawsuit, filed in the District of Colorado, accuses Prime of trademark infringement just days before the 2024 Paris Olympics.

The Olympic Committee’s complaint centers on a special edition of the Prime drink, featuring NBA star and three-time Olympic gold medalist, Kevin Durant. This particular edition allegedly uses trademarked Olympic phrases and symbols without authorization, branding it as the “Olympic Prime Drink” and the “Team USA Kevin Durant Drink.” The committee detests this use, calling it “willful, deliberate, and in bad faith,” claiming no such agreement exists between the two parties.

The committee didn’t mince words in its complaint, stating that Prime’s actions could deceive consumers into believing an official partnership exists. “Prime Hydration has used the following Olympic-related terminology and trademarks on product packaging, Internet advertising and in promotions featuring a Prime Hydration flavor and athlete Kevin Durant,” the lawsuit reveals. The committee argues this unauthorized branding could create confusion about the drink's origins and quality.

The backstory of Prime’s rise adds a layer of complex nuances to the case. Launched in 2022, Prime hit the market with a big bang, thanks to the massive social media followings of its founders, Logan Paul and KSI. The drink boasts notable collaborations, including partnerships with sports giants Arsenal and the LA Dodgers. The hype around Prime was so intense that it led to some shops in the UK limiting the number of bottles customers could buy.

However, this is not the first time Prime has found itself under scrutiny. In July 2023, Senate Majority Leader Chuck Schumer asked the FDA to investigate Prime’s high caffeine content, particularly concerned with its impact on younger consumers. Prime Energy drinks contain 200 milligrams of caffeine per 12-ounce can, about the same as nearly two cans of Red Bull or a six-pack of Coke. Though Prime also offers a caffeine-free hydration line, questions about the Energy line’s safety have raised eyebrows among health experts and lawmakers alike.

Moreover, a California law firm filed a class-action lawsuit against the company, alleging that a now-discontinued flavor of Prime Hydration contained perfluoroalkyl and polyfluoroalkyl substances (PFAS), also known as “forever chemicals.” These substances can linger in the environment and the human body, potentially posing health risks. Paul disputed the claims in a since-removed TikTok video, but the shadow of that lawsuit still hovers over the brand.

According to the Olympic Committee’s lawsuit, they are not only seeking the cessation of any unauthorized trademarks but also demanding “all profits associated with the sale of the allegedly infringing drink” and compensation for any harm to its sponsorship agreements. The committee relies heavily on licensing its trademarks to fund the U.S. Olympic Team, as it does not receive federal government funding. Unauthorized use undermines these crucial partnerships and harms the brand’s goodwill.

Despite the cease-and-desist letter sent to Prime on July 10, the company allegedly continued to sell and market the product, leaving some of its controversial social media posts intact. As of the latest updates, some posts seem to have been removed, and the drink appears to be taken off the company’s website, but the lawsuit contends that Prime’s compliance came too little, too late.

Beyond the legal realm, Logan Paul has another big moment on the horizon. He is set to defend his United States Championship against LA Knight at WWE’s SummerSlam on August 3rd. Known for his undefeated streak at SummerSlam, where he triumphed over The Miz in 2022 and Ricochet in 2023, Paul is riding high on his wrestling accolades. But the looming lawsuit could be a significant distraction, potentially overshadowing his imminent match.

As Logan Paul gears up for both a wrestling bout and a legal battle, it’s clear that Prime’s woes are far from over. With the stakes high and the eyes of the world on the 2024 Paris Olympics, this lawsuit could set a precedent for how aggressively organizations protect their trademarks against rising social media empires.

According to the U.S. Olympic and Paralympic Committee’s complaint, the “damage and irreparable injury” caused by Prime’s alleged infringements are significant. While representatives for Prime have yet to respond to these allegations, and Paul himself remains tight-lipped, the court’s decision could profoundly impact the brand’s future.

Angelaying from NBC News summed it up succinctly: “Prime Hydration’s conduct has been and continues to be willful, deliberate, and in bad faith, with malicious intent to trade on the goodwill of the USOPC and the IOC.” As readers ponder over the eventual court rulings, one thing is crystal clear — the world of energy drinks is bubbling with more than just fizz.