Contract analysis

1. This is an action for federal trademark infringement under Section 32(1) of the Lanham Act, 15 U.S.C. § 1114(1); federal unfair competition and false designation of origin under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); federal trademark dilution under Section 43(c) of the Lanham Act, 15 U.S.C. § 1125(c); Florida common law trademark infringement; and violation of the Florida Deceptive and Unfair Trade

2. CVR's unauthorized adoption and use of marks incorporating the term "VERIMARK" — the distinctive and famous house mark of Plaintiff — for identical hospitality services in overlapping geographic markets and trade channels is likely to cause, and has in fact already caused, consumer confusion, mistake, and deception as to the source, origin, sponsorship, and affiliation of CVR's services.

3. VHG retained Broadleaf Investigations Inc. ("Broadleaf"), a nationally recognized private investigation firm, to conduct a marketplace investigation between March 2024 and June 2025. Broadleaf's investigation included mystery shopping at CVR's resort properties, domain and web traffic analysis, social media monitoring, and review of consumer correspondence and online travel agency listings. Through this investigat

4. Despite receiving two cease-and-desist demands — the first dated May 14, 2024, and the second dated August 12, 2024 — CVR has refused to cease its infringing use of the VERIMARK marks, has continued to expand its operations, and has affirmatively sought federal trademark registration for the infringing mark "VERIMARK RESORTS." CVR's deliberate and continued use of marks confusingly similar to VHG's famous VERIMARK

II. THE PARTIES A. Plaintiff Verimark Hospitality Group Inc.

5. Plaintiff Verimark Hospitality Group Inc. is a corporation duly organized and existing under the laws of the State of Delaware. VHG is publicly traded on the Nasdaq Global Select Market under the ticker symbol "VMHG."

6. VHG maintains its principal corporate headquarters at 2200 Bayshore Boulevard, Suite 1400, Tampa, Florida 33629. VHG's registered agent in the State of Delaware is Capitol Statutory Services Inc., located at 1209 Orange Street, Wilmington, Delaware 19801. VHG's Employer Identification Number is 26-3847192.

7. VHG operates in the hospitality and real estate industry and is one of the leading branded resort and hotel operators in the United States and the Caribbean. VHG owns, manages, and operates a portfolio of seventy-four (74) branded resort and hotel properties across eighteen (18) states and the Caribbean, all of which operate under the VERIMARK family of marks.

8. VHG's annual revenue for fiscal year 2024 was approximately $1.87 billion, substantially all of which was derived from services provided under the VERIMARK marks. During fiscal year 2024, VHG invested approximately $142 million in marketing and advertising (representing approximately 7.6% of total revenue), promoting the VERIMARK marks through a comprehensive, multi-channel marketing program encompassing national

9. VHG's Chief Executive Officer is Donald R. Hargrove. VHG's General Counsel is Sonia M. Trevino. VHG's Vice President of Brand Protection is Leonard Yee, who is responsible for the protection and enforcement of VHG's trademark portfolio worldwide. B. Defendant Coral Verimark Resorts LLC

10. Defendant Coral Verimark Resorts LLC is a limited liability company organized under the laws of the State of Florida. CVR was formed on January 8, 2024, with the Florida Secretary of State, Division of Corporations. A copy of CVR's Florida Secretary of State filings is attached hereto as Exhibit L.

11. CVR maintains its principal office at 6810 Ocean Drive, Unit 3, Fort Lauderdale, Florida 33308. CVR's registered agent in the State of Florida is Suncoast Filing Services LLC, located at 100 S.E. 3rd Avenue, Suite 210, Fort Lauderdale, Florida 33301. CVR's Employer Identification Number is 93-1568240.

12. CVR operates in the boutique luxury coastal resort industry. Upon information and belief, CVR's estimated annual revenue for calendar year 2024, which was a partial year encompassing approximately nine and one-half (9.5) months of operations (from approximately March 15, 2024, through December 31, 2024), was approximately $4.3 million. Upon information and belief, CVR's projected gross revenue for calendar year 2

13. CVR currently operates two resort properties: (a) "Verimark Resorts Fort Lauderdale," located at 6810 Ocean Drive, Fort Lauderdale, Florida 33308, which opened on or about March 15, 2024; and (b) "Verimark Resorts Harborline Enterprises Head," located at 44 Lighthouse Road, Harborline Enterprises Head Island, South Carolina 29928, which opened on or about June 1, 2024. Upon information and belief, CVR is in the p

14. CVR's Managing Member and Founder is Rafael J. Medina. CVR's Co-Member and Operations Director is Gabriela N. Serrano. Upon information and belief, Mr. Medina and Ms. Serrano are the sole members of CVR and exercise day-to-day control over CVR's operations, including all decisions relating to CVR's branding, marketing, and use of the infringing marks.

III. JURISDICTION AND VENUE A. Subject Matter Jurisdiction

15. This Court has original subject matter jurisdiction over Counts I through III of this Verified Complaint pursuant to 28 U.S.C. §§ 1331 and 1338(a) because those claims arise under the Trademark Act of 1946, as amended (the Lanham Act), 15 U.S.C. §§ 1051 et seq., which is an Act of Congress relating to trademarks, unfair competition, and false designation of origin.

16. This Court has supplemental jurisdiction over the state law claims asserted in Counts IV and V of this Verified Complaint pursuant to 28 U.S.C. § 1367(a) because those claims are so related to the federal claims within the original jurisdiction of this Court that they form part of the same case or controversy under Article III of the United States Constitution. Specifically, the state law claims arise from the sa

17. This Court has personal jurisdiction over CVR because CVR is a Florida limited liability company organized under the laws of the State of Florida, with its principal office located at 6810 Ocean Drive, Unit 3, Fort Lauderdale, Florida 33308, which is within the Southern District of Florida, Miami Division. CVR is thus a resident of the State of Florida and is subject to the general jurisdiction of the courts of t

18. In addition, this Court has specific personal jurisdiction over CVR because CVR conducts substantial and continuous business within this judicial district, including, without limitation: (a) operating a resort property at 6810 Ocean Drive, Fort Lauderdale, Florida 33308; (b) marketing and promoting its services to consumers within this judicial district through the website www.verimarkresortsgroup.com, the Northp

19. Venue is proper in the Southern District of Florida pursuant to 28 U.S.C. § 1391(b)(1) and (b)(2) because: (a) CVR is a resident of this district within the meaning of 28 U.S.C. § 1391(c)(2), as its principal place of business is located in Fort Lauderdale, Florida, which is within this judicial district; (b) a substantial part of the events or omissions giving rise to VHG's claims occurred in this district, incl

IV. FACTUAL ALLEGATIONS A. VHG's VERIMARK Marks and Trademark Registrations

20. VHG is the owner of the VERIMARK family of marks (collectively, the "VERIMARK Marks"), which it has used continuously in interstate commerce in connection with hotel, resort, and hospitality services since September 3, 2007 — a period of more than seventeen (17) years.

21. VHG owns the following federal trademark registrations on the Principal Register of the United States Patent and Trademark Office ("USPTO"), all of which are valid, subsisting, and in full force and effect: (a) U.S. Registration No. 3,742,618 — VERIMARK (standard character/word mark), registered March 17, 2009, for services in International Class 043, including hotel and resort services, resort lodging services,

22. VHG's earliest registration, U.S. Registration No. 3,742,618 for the VERIMARK word mark, has been registered on the Principal Register of the USPTO for over sixteen (16) years. As a federally registered trademark on the Principal Register, this registration is entitled to all statutory presumptions afforded under 15 U.S.C. § 1057(b), including presumptions of validity, ownership, and the exclusive right to use th

23. Upon information and belief, U.S. Registration No. 3,742,618 (registered March 17, 2009) and U.S. Registration No. 4,105,233 (registered January 10, 2012) have achieved incontestable status under 15 U.S.C. § 1065, as VHG has filed the requisite declarations of continued use and incontestability with the USPTO and the marks have been in continuous use in commerce for more than five consecutive years following thei

24. VHG has duly maintained all of its VERIMARK mark registrations by timely filing all required renewal applications and declarations of continued use with the USPTO, including the declarations required under Sections 8 and 9 of the Lanham Act, 15 U.S.C. §§ 1058 and 1059. B. VHG's Extensive Use, Promotion, and Fame of the VERIMARK Marks

25. VHG has used the VERIMARK Marks continuously and exclusively for over seventeen (17) years in connection with a broad range of hospitality services, including, without limitation: luxury hotel and resort accommodations; conference, meeting, and event planning and hosting services; food and beverage services, including branded restaurants, bars, and in-room dining; spa, wellness, and fitness services; concierge an

26. As set forth above, VHG operates a portfolio of seventy-four (74) branded resort and hotel properties across eighteen (18) states and the Caribbean, all of which bear the VERIMARK Marks prominently on signage, building facades, guest room amenities, staff uniforms, marketing materials, and digital properties. VHG's resort and hotel properties include luxury beachfront resorts, urban boutique hotels, and destinati

27. VHG's annual revenue for fiscal year 2024 was approximately $1.87 billion, substantially all of which is directly attributable to services provided under the VERIMARK Marks. VHG has experienced consistent revenue growth over the past decade, reflecting the increasing strength and consumer recognition of the VERIMARK brand.

28. During fiscal year 2024, VHG invested approximately $142 million in marketing and advertising (representing approximately 7.6% of total revenue), promoting the VERIMARK Marks through an integrated, multi-channel marketing program that includes: (a) national and regional television advertising campaigns, including placements on major broadcast and cable networks; (b) digital advertising and search engine marketing

29. VHG operates the website www.verimark.com, which serves as its primary digital storefront and receives millions of unique visitors annually. VHG also maintains an active and widely followed social media presence across all major social media platforms, including its Northpoint Services Inc. account @verimarkhospitality, which has approximately 1.4 million followers. Representative screenshots of VHG's website and

30. The VERIMARK Marks have been the subject of extensive unsolicited media coverage, including features in major national publications and prominent travel industry media. VHG has received numerous industry awards and recognitions, further enhancing the fame and prestige of the VERIMARK brand.

31. As a result of VHG's long, continuous, and extensive use of the VERIMARK Marks in commerce; its massive and sustained advertising and promotional expenditures; the consistently high quality of its services; the volume of its business; the breadth of its geographic reach; the widespread unsolicited media coverage of its brand; and the strong recognition of the VERIMARK Marks among consumers, travel industry profes

32. The southeastern United States is a core geographic market for VHG's VERIMARK-branded hospitality services. VHG operates multiple resort and hotel properties in the southeastern United States, including, among others: (a) "Verimark Oceanview" — located at 1740 N. Fort Lauderdale Beach Boulevard, Fort Lauderdale, Florida 33305. This property is a luxury beachfront resort with 312 guest rooms and suites, multiple r

33. In addition to the properties specifically identified above, VHG operates additional VERIMARK-branded properties in Florida, Georgia, South Carolina, and North Carolina, as well as in the Caribbean. VHG's southeastern U.S. properties are among its highest-performing and most visible resort locations and are a core component of VHG's brand identity and consumer recognition. The southeastern U.S. market generates a

34. On or about January 8, 2024, Defendant CVR was formed as a Florida limited liability company by filing Articles of Organization with the Florida Secretary of State, Division of Corporations. CVR was formed by Rafael J. Medina (Managing Member and Founder) and Gabriela N. Serrano (Co-Member and Operations Director). A copy of CVR's Florida Secretary of State filing is attached hereto as Exhibit L.

35. On or about January 12, 2024, just four days after its formation, CVR registered the domain name www.verimarkresortsgroup.com through domain registrar NetLedger Domains Inc. Domain registration records for www.verimarkresortsgroup.com are attached hereto as Exhibit E.

36. On or about January 20, 2024, CVR created the Northpoint Services Inc. handle @verimarkresortsofficial.

37. On or about March 1, 2024, CVR commenced use in commerce of the marks "VERIMARK RESORTS" (word mark) and "VR Verimark" (stylized logo) in connection with luxury coastal resort services, including through its website, social media accounts, online travel agency listings, and at its Fort Lauderdale property.

38. CVR's first use in commerce of marks incorporating "VERIMARK" occurred on or about March 1, 2024 — more than sixteen (16) years after VHG's first use in commerce of the VERIMARK mark on September 3, 2007, and more than fourteen (14) years after VHG obtained its earliest federal trademark registration (U.S. Registration No. 3,742,618, registered March 17, 2009). CVR thus had actual or constructive knowledge of VHG

39. Upon information and belief, prior to forming CVR and adopting the "VERIMARK RESORTS" and "VR Verimark" marks, Rafael J. Medina and Gabriela N. Serrano were aware of VHG and its VERIMARK-branded hospitality services. VHG's VERIMARK Marks are famous throughout the United States, particularly in the southeastern United States hospitality market, and it is not plausible that individuals forming a new luxury resort c

40. CVR currently operates two resort properties under the infringing marks "VERIMARK RESORTS" and "VR Verimark": (a) "Verimark Resorts Fort Lauderdale" — located at 6810 Ocean Drive, Fort Lauderdale, Florida 33308. This property opened on or about March 15, 2024. Upon information and belief, the Verimark Resorts Fort Lauderdale property is a boutique luxury coastal resort offering guest room accommodations, dining s

41. Upon information and belief, CVR is in the process of developing a third resort property under the infringing marks, located at 1025 Emerald Coast Parkway, Destin, Florida 32541. If CVR is permitted to open this third location under the infringing marks, the scope and severity of consumer confusion will only increase, as VHG also operates branded properties in the Florida Panhandle region.

42. CVR's "VR Verimark" stylized logo utilizes a serif typeface and a blue-and-gold color palette that closely mirrors the overall look and feel of VHG's registered VERIMARK "V" Design Mark (U.S. Registration No. 5,489,701), which features a prominent stylized letter "V" rendered in a navy-and-gold color scheme. The visual similarities between the two logos extend beyond the shared use of the dominant term "VERIMARK"

43. CVR promotes its resort services through the website www.verimarkresortsgroup.com and the Northpoint Services Inc. handle @verimarkresortsofficial, both of which prominently feature the "VERIMARK RESORTS" and "VR Verimark" marks. Representative screenshots of CVR's website and Northpoint Services Inc. account are attached hereto as Exhibit C. The domain www.verimarkresortsgroup.com incorporates VHG's VERIMARK mar

44. The services offered by CVR under the infringing marks — luxury coastal resort accommodations, dining services, concierge services, and related hospitality services — are identical to the services offered by VHG under the VERIMARK Marks. The identity of services is a significant factor weighing in favor of a finding of likelihood of confusion.

45. CVR's services are offered to the same class of consumers as VHG's services — namely, leisure and business travelers seeking luxury resort accommodations in the southeastern United States and the coastal regions thereof. CVR markets and distributes its services through the same or substantially overlapping trade channels as VHG, including: (a) direct online booking through its own website; (b) online travel agenc

46. CVR's resort operations are concentrated in VHG's core southeastern United States geographic market. CVR's Fort Lauderdale property is in direct geographic proximity — approximately four miles — from VHG's flagship Verimark Oceanview resort in Fort Lauderdale. CVR's Harborline Enterprises Head Island property is located in a region where VHG also maintains a significant brand presence. The geographic overlap betw

47. On or about April 15, 2024, CVR filed U.S. Trademark Application Serial No. 98/432,117 with the USPTO, seeking registration of the mark "VERIMARK RESORTS" in International Class 043 for hotel and resort services. A copy of CVR's trademark application is attached hereto as Exhibit F.

48. CVR's trademark application was examined by the USPTO and published for opposition in the Official Gazette on November 5, 2024.

49. On December 3, 2024, VHG timely filed a Notice of Opposition before the Trademark Trial and Appeal Board ("TTAB"), opposing CVR's application under TTAB Opposition No. 91/287,456. A copy of VHG's Notice of Opposition is attached hereto as Exhibit M.

50. By stipulation of the parties and order of the TTAB dated February 18, 2025, the TTAB opposition proceeding has been suspended pending the outcome of this district court action. A copy of the TTAB's suspension order is attached hereto as Exhibit N.

51. CVR's attempt to register the mark "VERIMARK RESORTS" with the USPTO further demonstrates CVR's intent to continue and expand its use of marks confusingly similar to VHG's VERIMARK Marks and underscores the need for judicial intervention. G. Actual Consumer Confusion

52. VHG retained Broadleaf Investigations Inc. ("Broadleaf"), a nationally recognized private investigation firm with extensive experience in trademark enforcement and marketplace investigations, to conduct a comprehensive marketplace investigation regarding the impact of CVR's use of the infringing marks. Broadleaf conducted its investigation over a period of approximately fifteen (15) months, from March 2024 throug

53. Through its investigation, Broadleaf documented twenty-three (23) discrete instances of actual consumer confusion between March 2024 and June 2025, including, but not limited to, the following categories of confusion: (a) Misdirected Reservation Inquiries: Consumers intending to make reservations at CVR resort properties contacted VHG's central reservation system, and conversely, consumers intending to book at VH

54. A detailed summary of all twenty-three (23) documented instances of actual consumer confusion, compiled by Broadleaf, is attached hereto as Exhibit K. The summary includes, for each instance, the date of the incident, the nature of the confusion, the platform or channel on which the confusion occurred, and a description of the relevant consumer communication or content.

55. These documented instances of actual consumer confusion constitute powerful evidence that consumers in the marketplace are unable to distinguish between VHG's VERIMARK Marks and CVR's "VERIMARK RESORTS" and "VR Verimark" marks. Actual confusion is the best evidence of likelihood of confusion, and the substantial number of documented instances here — twenty-three (23) over a fifteen-month period — demonstrates tha

56. On May 14, 2024, VHG's General Counsel, Sonia M. Trevino, sent a cease-and-desist letter to CVR at its principal office address, 6810 Ocean Drive, Unit 3, Fort Lauderdale, Florida 33308, directed to the attention of Rafael J. Medina, Managing Member. The letter identified VHG's federal trademark registrations and longstanding prior rights in the VERIMARK Marks, informed CVR that its use of "VERIMARK RESORTS" and