A trademark dispute between the nation's largest homebuyer and a media giant could get ugly.
HomeVestors of America, the firm behind the ubiquitous "We Buy Ugly Houses" trademark, is accusing Warner Bros. Discovery of trademark infringement, among three other counts, over its HGTV show "Ugliest House in America." The Dallas-based HomeVestors claims to hold over 30 trademarks around the "Ugly" phrasing, according to the complaint filed last week in the U.S. District Court for the District of Delaware.
"Most of the shows center around little more than making fun of homes and home design," said HomeVestors in a press release last week. "The nature of this television show does not align with HomeVestors' values or brand identity."
The media conglomerate earlier this year refused to address HomeVestors' concerns about confusion between the entities, prompting HomeVestors' lawsuit seeking a permanent injunction. A representative for Warner Bros. Discovery didn't return a request for comment.
HomeVestors, founded in 1996, claims to be the nation's largest professional home buying franchise with over 125,000 homes purchased. Its 1,100 franchises in 176 markets make cash purchases, rehabilitate, sell and hold residential property, much like the thriving investor cohort did during the market's recent boom. The company has spent over $500 million in the past 10 years advertising and promoting its "Ugly" trademarks featured on billboards, internet and other media advertising, it said.
Since 2007, HomeVestors has also held an annual "The Ugliest House of the Year" home renovation contest, showcasing one its franchises' home makeovers as voted on by the public. Warner Bros. Discovery's show, which features a similar renovation contest, comes into conflict with HomeVestors' efforts, according to the suit.
Representatives from production company Big Fish Entertainment initially approached HomeVestors in June and July 2020, the suit claims, suggesting a collaboration. In August, the representatives put the discussion on hold, citing shifting circumstances in development. Big Fish Entertainment allegedly told HomeVestors it would reengage in discussions if the show had a "clear direction" moving forward.
In January, "Ugliest House in America" premiered on HGTV, hosted by a comedian traveling the nation to tour properties nominated as ugliest. The show also featured a $5,000 "Ugliest" giveaway, the suit said. A link to that contest on HGTV's website no longer exists.
"Defendant's attempt to turn poor housing design into a comedy show reflects poorly on the homeowners and on the concept of home remodeling," wrote attorney Kelly Farnan of Wilmington, Delaware-based Richards, Layton & Finger, P.A. on behalf of HomeVestors. "This runs counter to HomeVestors' brand image, which focuses on helping rehab homes that have fallen into disrepair and helping homeowners out of 'ugly situations.'"
HomeVestors contacted Warner Bros. Discovery in January and February and asked it to stop using the "Ugliest House in America" trademark, but the media company took no steps to provide a disclaimer or change its name, the suit said. The television station this week promoted the upcoming premiere of the third season of the show.
"Defendant's show relies heavily on use of the words UGLY and UGLIEST in connection with HOUSE and HOUSES, even though there are many synonyms for both words that Defendant could have chosen to use," wrote Farnan.
Warner Bros. Discovery has a Jan. 3 deadline to respond to the lawsuit, according to court records.
Trademark disputes aren't as rampant in the real estate industry as other litigation, but such lawsuits still periodically arise between competitors. Ohio-based Rapid Mortgage Company last week filed a complaint against Michigan-based Rapid Mortgage Funding in an Ohio federal court, alleging the company formerly known as J&D Funding, Inc. began marketing itself in 2020 as "Rapid Mortgage." Rapid Mortgage Co. alleges RMF's advertising, marketing and sales is harming the value of its trademark and is likely to mislead consumers into believing the competitor's services are affiliated or approved by Rapid Mortgage Co.
