Harlem Wizards Entertainment Basketball, Inc. v. NBA Properties, Inc.

Harlem Wizards Entertainment Basketball, Inc. (Harlem Wizards) (plaintiff), founded in 1962, was an exhibition comedy basketball team. The Harlem Wizards mostly participated in mock competitions at school, camp, or charity events and did not compete in professional leagues or against professional teams. The Harlem Wizards marketed directly to event organizers and only sold merchandise at events. The Washington Bullets (defendant) were a professional competitive basketball team and member of the National Basketball Association (NBA) (defendant). Washington Bullets merchandise was sold through NBA Properties, Inc. (defendant) in retail stores nationwide and always carried the NBA logo. The Washington Bullets marketed directly to professional basketball fans. In 1996, after conducting a trademark search and consulting with trademark counsel, the Washington Bullets planned to change the team’s name to the Washington Wizards. The Harlem Wizards sued the Washington Bullets for trademark infringement, arguing that the name change would cause reverse confusion and undermine the value of the Harlem Wizard’s trademark. At trial, the Harlem Wizards submitted limited, weak testimony from select individuals, mostly children, indicating confusion between the two teams. Both the Harlem Wizards and the Washington Bullets commissioned and submitted consumer surveys, neither of which showed evidence of widespread confusion or widespread recognition of the Harlem Wizards’ brand. The Washington Bullets moved to dismiss.