$175 million award is one of the largest-ever monetary judgments for trademark infringement
IRVINE, CALIF., July 1, 2022 – Today, the U.S. District Court for the Central District of California confirmed a $175 million arbitration award on behalf of Orange Bang Inc. and Monster Energy Company in a trademark infringement case against rival drink maker Vital Pharmaceuticals Inc. A team from Knobbe Martens represented Orange Bang Inc. in the matter, securing both the award and its confirmation by the Court.
The award ranks among the largest-ever U.S. trademark verdicts. In addition to the $175 million award, the arbitrator awarded Orange Bang and Monster 5% future royalties on Vital Pharmaceuticals’ Bang-related sales.
The arbitrator found that Vital Pharmaceuticals, which creates and distributes sports drinks and supplements under the name “VPX” and “BANG”, breached its more than a decade-old trademark infringement settlement with Orange Bang. In that settlement, VPX agreed only to use the “BANG” mark on creatine-based sports beverages or noncreatine-based sports beverages if they are sold through vitamin shops, gyms, health clubs, or vitamin and dietary supplement sections of grocery stores.
In securing the arbitration award, Orange Bang and Monster demonstrated that "super creatine"-dubbed Bang Energy, which VPX launched in 2015 and is among the best-selling energy drinks in the United States, did not meet the settlement’s requirements. Monster, which is embroiled in its own dispute with VPX, agreed to help Orange Bang defend its trademark rights.
“We are very pleased that the arbitrator ruled VPX infringed Orange Bang’s trademarks and breached its previous settlement with Orange Bang,” said Knobbe Martens Managing Partner Steven Nataupsky, who led the team representing Orange Bang. “We are gratified by today’s decision by the Court, and I am particularly proud of the work of our team that ensured VPX was held accountable for its actions.”
The case is Vital Pharmaceuticals Inc. et al. v. Orange Bang Inc. et al., No. 5:20-cv-01464 (C.D. Calif.). A copy of Judge Dale Fischer’s order granting the confirmation of the arbitration award may be found here.