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AMV Holdings, LLC v. American Vapes, Inc.

United States District Court, W.D. North Carolina, Statesville Division

January 9, 2020

AMV HOLDINGS, LLC f/k/a MADVAPES HOLDINGS, LLC and MADVAPES FRANCHISING, LLC, Plaintiffs,
v.
AMERICAN VAPES, INC., BRYAN HOUGH, individually, CRAIG KINLAW, individually, and WAYNE KINLEY, individually, Defendants.

          William S. Cherry III, Jessica B. Vickers, Manning, Fulton & Skinner, P. Attorney for Plaintiffs

          Jonathan N. Barber, Barber Power Law Group, PLLC Attorneys for Defendants

          ORDER, CONSENT PERMANENT INJUNCTION AND JUDGMENT

          Kenneth D. Bell United States District Judge

         At the request of the Parties as set forth in their Joint Motion for Entry of Consent Permanent Injunction and Final Judgment (Doc. No. 32), the Court enters the following Order, Permanent Injunction and Judgment in this matter:

         FINDINGS OF FACT

         1. Plaintiffs AMV Holdings, LLC and MadVapes Franchising, LLC (collectively “Plaintiffs” or “MadVapes”) is a franchisor in the vaping and e-cigarette business.

         2. Defendant American Vapes, Inc. (“American Vapes”) is a former franchisee and its owners, the individual Defendants Bryan Hough, Craig Kinlaw and Wayne Kinley (the individual Defendants collectively with American Vapes referred to herein as “Defendants”), are guarantors of the franchise agreements and obligations thereunder.

         3. At all relevant times prior to termination of the MadVapes franchise agreements, American Vapes operated eight store locations using MadVapes trademarks at, and in association with, each of the eight locations.

         4. American Vapes now operates vaping and electronic cigarette businesses from each of the same eight locations where it operated as a MadVapes franchisee under its trade name “Mellow Vapes.”

         5. MadVapes Amended Complaint (D.E. 14) identifies six trademarks (the “MADVAPES Trademarks”) which include the “MADVAPES” name and in some cases the signature curving design in the style of a plume of smoke as used in association with the “MADVAPES” name. The Parties agree that the MADVAPES Trademarks are valid and protectable.

         6. MadVapes filed a Preliminary Injunction Motion (D.E. 16) seeking to enjoin Defendants from, among other things, using its trademarks in connection with American Vapes' new Mellow Vapes business.

         7. This Court entered an Order (D.E. 25) granting in part and denying in part MadVapes' Preliminary Injunction Motion.

         8. Subsequent to the Court's entry of the Preliminary Injunction Order, the parties entered into a confidential Settlement Agreement in which they agreed to, among other things, the Permanent Injunction contained herein.

         CONCLUSIONS ...


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