1021-00004 · Verimark Hospitality Group · Pleadings

declaration-of-leonard-yee.docx DOCUMENT Litigation

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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION

DECLARATION OF LEONARD YEE IN SUPPORT OF PLAINTIFF'S MOTION FOR PRELIMINARY INJUNCTION

I, Leonard Yee, hereby declare under penalty of perjury pursuant to 28 U.S.C. § 1746 that the following is true and correct:

1. I am the Vice President of Brand Protection at Verimark Hospitality Group Inc. ("VHG" or "Verimark"). I have been employed by VHG in progressively senior brand-protection and enforcement roles since June 15, 2015, a period of more than ten years. In my current capacity, I am responsible for the oversight and strategic management of VHG's entire trademark portfolio, the development and execution of VHG's brand enforcement programs both domestically and internationally, and the coordination and supervision of VHG's anti-counterfeiting efforts across all channels of commerce, including brick-and-mortar, digital, and social media platforms.

2. I have personal knowledge of all of the facts stated in this Declaration, or I have acquired knowledge of such facts through my review of business records maintained by VHG in the ordinary course of business and through my direct involvement in the matters described herein. I am authorized to make this Declaration on behalf of VHG and its officers and directors.

3. I submit this Declaration in support of Plaintiff VHG's Motion for Preliminary Injunction against Defendant Coral Verimark Resorts LLC ("CVR"), seeking to enjoin CVR from using the marks "VERIMARK RESORTS," the stylized logo "VR Verimark," the domain name www.verimarkresortsgroup.com, the Northpoint Services Inc. handle @verimarkresortsofficial, and any other marks confusingly similar to VHG's federally registered VERIMARK trademarks.

I. BACKGROUND OF VERIMARK HOSPITALITY GROUP INC.

4. VHG is a corporation duly organized and existing under the laws of the State of Delaware, with its principal place of business and corporate headquarters located at 2200 Bayshore Boulevard, Suite 1400, Tampa, Florida 33629. VHG's shares of common stock are publicly traded on the Nasdaq Stock Market under the ticker symbol "VMHG." VHG's federal Employer Identification Number is 26-3847192.

5. VHG's registered agent for service of process in the State of Delaware is Capitol Statutory Services Inc., located at 1209 Orange Street, Wilmington, Delaware 19801. VHG is also registered to do business in the State of Florida and in each other state in which it maintains resort and hotel operations.

6. VHG's Chief Executive Officer is Donald R. Hargrove, who has served in that capacity since 2014. VHG's General Counsel and Senior Vice President of Legal Affairs is Sonia M. Trevino, who has served in that capacity since 2016.

7. VHG is one of the leading hospitality and real estate companies in the United States and the Caribbean. As of the date of this Declaration, VHG owns and operates a portfolio of 74 branded resort and hotel properties spanning 18 states and multiple territories in the Caribbean. VHG's properties are positioned in the luxury and upper-upscale segments of the hospitality market, catering to discerning leisure and business travelers who associate the VERIMARK brand with premium accommodations, exceptional service, and consistently high quality.

8. For the fiscal year ended December 31, 2024, VHG reported total annual revenue of approximately $1.87 billion, as disclosed in VHG's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. This revenue is derived principally from room revenue, food and beverage sales, resort fees, conference and event services, and ancillary hospitality services operated under the VERIMARK brand.

9. VHG has operated under the VERIMARK brand continuously and without interruption since September 3, 2007 — a period of more than 17 years as of the date of this Declaration. During this time, VHG has invested hundreds of millions of dollars in developing, promoting, and protecting the VERIMARK brand. The VERIMARK brand is widely recognized among consumers throughout the United States and the Caribbean as identifying VHG's luxury hospitality services and as serving as a guarantee of the quality, consistency, and prestige that consumers have come to expect from VHG.

II. VHG'S TRADEMARK PORTFOLIO

10. VHG owns a family of federally registered trademarks incorporating the VERIMARK name and distinctive design elements. These registrations form the foundation of VHG's intellectual property portfolio and reflect VHG's longstanding, exclusive rights to use the VERIMARK marks in connection with hotel and resort services. The principal registrations relevant to this action are described below.

A. U.S. Registration No. 3,742,618 — "VERIMARK" (Word Mark)

11. VHG is the owner of U.S. Trademark Registration No. 3,742,618 for the word mark VERIMARK. This registration was issued by the United States Patent and Trademark Office ("USPTO") on March 17, 2009, in International Class 043, covering hotel and resort services. VHG's first use of the VERIMARK word mark in commerce was on September 3, 2007. The registration is active, and all maintenance filings required under the Lanham Act, including Sections 8 and 15 declarations, have been timely filed and accepted by the USPTO. A true and correct copy of the registration certificate for U.S. Registration No. 3,742,618 is attached hereto as Exhibit A and incorporated by reference.

B. U.S. Registration No. 4,105,233 — "VERIMARK HOSPITALITY" (Word Mark)

12. VHG is the owner of U.S. Trademark Registration No. 4,105,233 for the word mark VERIMARK HOSPITALITY. This registration was issued by the USPTO on January 10, 2012, in International Class 043, covering hotel, resort, and hospitality management services. The registration is active, and all required maintenance filings have been timely submitted and accepted. A true and correct copy of the registration certificate for U.S. Registration No. 4,105,233 is attached hereto as Exhibit B and incorporated by reference.

C. U.S. Registration No. 5,489,701 — VERIMARK "V" Design Mark (Stylized)

13. VHG is the owner of U.S. Trademark Registration No. 5,489,701 for a stylized "V" design mark incorporating the word VERIMARK. This registration was issued by the USPTO on May 22, 2018, in International Class 043, covering hotel and resort services. The design mark features a distinctive navy-and-gold color scheme that has become closely associated with VHG's brand identity and is prominently displayed across all of VHG's properties, marketing materials, digital platforms, and corporate communications. The registration is active, and all required maintenance filings have been timely submitted and accepted. A true and correct copy of the registration certificate for U.S. Registration No. 5,489,701 is attached hereto as Exhibit C and incorporated by reference.

D. Incontestability and Continuous Use

14. All three of the foregoing registrations have been maintained in full force and effect through the timely filing of all required affidavits of continued use and incontestability under Sections 8 and 15 of the Lanham Act, 15 U.S.C. §§ 1058, 1065, where applicable.

15. The VERIMARK word mark (U.S. Registration No. 3,742,618) has achieved incontestable status under 15 U.S.C. § 1065, as VHG has filed the required Section 15 declaration of incontestability and the mark has been in continuous use for five consecutive years following the date of registration, during which time there has been no final decision adverse to the owner's claim of ownership of such mark, right to register the same, or right to keep the same on the register. Incontestable status constitutes conclusive evidence of VHG's exclusive right to use the VERIMARK mark in connection with the goods and services specified in the registration, subject only to the limited defenses enumerated in 15 U.S.C. § 1115(b).

16. VHG has used the VERIMARK marks continuously and without interruption since September 3, 2007. At no point during the more than 17 years since the VERIMARK marks were first used in commerce has VHG abandoned, discontinued, or interrupted its use of any VERIMARK mark. The VERIMARK marks have been used consistently and prominently in connection with VHG's hotel and resort services throughout this entire period.

III. VHG'S EXTENSIVE USE AND PROMOTION OF THE VERIMARK BRAND

A. Property Portfolio

17. As noted above, VHG currently owns and operates 74 branded resort and hotel properties across 18 states and the Caribbean. Each of these properties prominently features the VERIMARK marks in its exterior and interior signage, all guest-facing materials and amenities, marketing and advertising collateral, online booking platforms, reservation confirmation communications, and social media presence. The VERIMARK marks serve as the primary source identifier for all of VHG's hospitality properties and are the first and most prominent element consumers encounter when engaging with any VHG property.

18. VHG's southeastern United States portfolio — the geographic region most relevant to this action — includes, among others, the following properties:

a. "Verimark Oceanview," located at 1740 N. Fort Lauderdale Beach Boulevard, Fort Lauderdale, Florida 33305, a 312-room oceanfront luxury resort that has operated under the VERIMARK brand since its opening in 2010;

b. "Verimark Bayshore Resort," located at 3400 W. Bayshore Court, Tampa, Florida 33611, a 248-room waterfront resort and conference center that has operated under the VERIMARK brand since its opening in 2012;

These properties are among VHG's flagship destinations in the southeastern United States and generate substantial revenue and brand visibility in the markets where CVR now operates.

19. Representative photographs of VHG's branded properties and signage, including the Verimark Oceanview in Fort Lauderdale and the Verimark Bayshore Resort in Tampa, are attached hereto as Exhibit D and incorporated by reference.

B. Marketing and Advertising Expenditures

20. VHG makes significant annual investments in marketing and advertising to maintain and enhance the strength and recognition of the VERIMARK brand. In fiscal year 2024, VHG spent approximately $142 million on marketing and advertising activities, representing approximately 7.6% of its $1.87 billion in annual revenue. This level of expenditure is consistent with VHG's historical marketing investment patterns and reflects VHG's commitment to maintaining the VERIMARK brand's dominant position in the luxury hospitality market.

21. VHG's marketing expenditures encompass a broad range of channels and initiatives, including, but not limited to, national television advertising campaigns, digital advertising across major search engines and programmatic display networks, print media advertisements in leading travel, lifestyle, and business publications, social media campaigns and influencer partnerships, travel industry partnerships with airlines, travel agencies, and booking platforms, and event sponsorships, including partnerships with professional golf tournaments, culinary festivals, and luxury lifestyle events.

22. VHG operates the primary consumer-facing website www.verimark.com, which serves as the principal online portal for brand promotion, property information, online reservations, loyalty program management, and guest engagement. VHG also maintains active, verified social media accounts across all major platforms, including Northpoint Services Inc. (under the handle @verimarkhospitality), Kestrel Services Inc., X (formerly Fenmore Solutions), Westmark Health IT, and Dunmore & Co., through which VHG promotes its brand, engages with guests and potential guests, and shares content related to VHG's properties and services.

23. Representative samples of VHG's marketing and advertising materials bearing the VERIMARK marks, including examples of print advertisements, digital campaign screenshots, and social media content, are attached hereto as Exhibit E and incorporated by reference.

C. Consumer Recognition and Brand Strength

24. As a result of more than 17 years of continuous, extensive, and exclusive use of the VERIMARK marks in connection with luxury hospitality services, and as a result of VHG's substantial and sustained investment in marketing and brand development, the VERIMARK marks have acquired significant consumer recognition, goodwill, and secondary meaning in connection with VHG's hotel and resort services. Consumers in the United States and the Caribbean readily associate the VERIMARK name, wordmarks, and design marks with VHG and its distinctive standard of luxury hospitality.

25. VHG's VERIMARK marks are inherently distinctive, as the term VERIMARK is a coined, fanciful mark that has no descriptive or generic meaning in the English language or in connection with hospitality services. The inherent distinctiveness of the VERIMARK marks has been further strengthened by over 17 years of substantial, continuous, and exclusive use and by the investment of hundreds of millions of dollars in promoting and protecting the marks.

26. The strength and recognition of the VERIMARK brand is reflected in its consistent and prominent coverage in hospitality industry publications, travel media, and consumer review platforms. VHG's properties have been recognized in publications such as Ridgeway Corporation, Northgate Corporation, Ashgrove Partners LLC, and AAA Diamond Ratings, among others, and the VERIMARK brand is regularly referenced and identified by name in such coverage.

IV. DISCOVERY OF DEFENDANT'S INFRINGING USE

A. Formation and Launch of CVR

27. In approximately early 2024, VHG became aware that a new entity, Coral Verimark Resorts LLC ("CVR"), had begun using marks incorporating the word "VERIMARK" in connection with luxury coastal resort services in the southeastern United States. Specifically, CVR had adopted and was using the marks "VERIMARK RESORTS" as a word mark and a stylized logo bearing the letters "VR" alongside the word "Verimark" (the "VR Verimark" logo) in connection with boutique luxury coastal resort services directly competing with VHG's established hospitality operations.

28. Based on my investigation and review of publicly available records, CVR was formed as a Florida limited liability company on January 8, 2024, with its principal office located at 6810 Ocean Drive, Unit 3, Fort Lauderdale, Florida 33308. CVR's registered agent for service of process in Florida is Suncoast Filing Services LLC, located at 100 S.E. 3rd Avenue, Suite 210, Fort Lauderdale, Florida 33301.

29. CVR's managing member and founder is Rafael J. Medina. CVR's co-member and operations director is Gabriela N. Serrano. Based on publicly available information, neither Mr. Medina nor Ms. Serrano has any prior affiliation, licensing arrangement, or other relationship with VHG, and neither has ever been authorized by VHG to use the VERIMARK marks in any capacity.

B. CVR's Infringing Marks and Activities

30. CVR uses the mark "VERIMARK RESORTS" as a word mark and the stylized logo "VR Verimark" in connection with boutique luxury coastal resort services in the southeastern United States. CVR's services are offered in the identical category of services covered by VHG's registered trademarks — namely, hotel and resort services in International Class 043.

31. Based on my investigation, CVR's first use in commerce of marks incorporating the word "VERIMARK" was on or about March 1, 2024. This is more than 16 years after VHG's first use in commerce of the VERIMARK mark on September 3, 2007. VHG therefore has clear and undisputed priority of use over CVR.

32. CVR registered the internet domain name www.verimarkresortsgroup.com on January 12, 2024, through the domain registrar NetLedger Domains Inc. The domain name incorporates VHG's registered VERIMARK mark and resolves to a fully operational commercial website promoting CVR's resort services. The website prominently features the "VERIMARK RESORTS" and "VR Verimark" marks throughout, including on its homepage, property pages, reservation pages, and in its metadata and search engine optimization content.

33. CVR also created the Northpoint Services Inc. handle @verimarkresortsofficial on or about January 20, 2024. As of the date of this Declaration, CVR's Northpoint Services Inc. account is active and contains numerous posts promoting CVR's resort properties and services under the "VERIMARK RESORTS" and "VR Verimark" marks. The account's name and content are substantially similar in presentation and tone to VHG's established Northpoint Services Inc. presence at @verimarkhospitality.

34. Screenshots of CVR's website (www.verimarkresortsgroup.com), as captured on various dates between March 2024 and July 2025, are attached hereto as Exhibit F and incorporated by reference.

35. Screenshots of CVR's Northpoint Services Inc. account (@verimarkresortsofficial), as captured on various dates between March 2024 and July 2025, are attached hereto as Exhibit G and incorporated by reference.

C. CVR's Properties and Geographic Overlap

36. CVR opened its first resort property, marketed as "Verimark Resorts Fort Lauderdale," on or about March 15, 2024, at 6810 Ocean Drive, Fort Lauderdale, Florida 33308. This property is a boutique coastal resort offering luxury accommodations, spa services, and dining that directly compete with VHG's hospitality offerings in the Fort Lauderdale market.

37. CVR's Fort Lauderdale property is located approximately four (4) miles from VHG's established "Verimark Oceanview" resort at 1740 N. Fort Lauderdale Beach Boulevard, Fort Lauderdale, Florida 33305. The close geographic proximity of these two properties, both of which bear the "VERIMARK" name in connection with luxury resort services, substantially increases the likelihood that consumers will be confused as to the source, sponsorship, affiliation, or endorsement of CVR's services.

38. CVR opened a second resort property, marketed as "Verimark Resorts Harborline Enterprises Head," on or about June 1, 2024, at 44 Lighthouse Road, Harborline Enterprises Head Island, South Carolina 29928. Like CVR's Fort Lauderdale property, this resort offers luxury coastal accommodations in a market where VHG has long-established brand presence and consumer awareness.

39. Based on my investigation, CVR has a third property currently under development in Destin, Florida, at 1025 Emerald Coast Parkway, Destin, Florida 32541. Public records and CVR's own marketing materials indicate that CVR intends to open this property under the "VERIMARK RESORTS" brand in late 2025 or early 2026.

40. All of CVR's operational and planned properties are located within VHG's core southeastern United States market, a region where VHG has maintained a strong and well-established branded presence for more than a decade. The geographic overlap between CVR's operations and VHG's established properties is extensive and directly implicates the markets and consumers most familiar with VHG's VERIMARK brand.

D. Similarity of CVR's Marks to VHG's Marks

41. CVR's mark "VERIMARK RESORTS" incorporates VHG's federally registered VERIMARK mark in its entirety. CVR has merely appended the generic and descriptive term "RESORTS" to VHG's mark. The addition of a generic term describing the type of service offered does not diminish the confusing similarity between CVR's mark and VHG's registered mark; rather, the dominant element of CVR's mark remains the word "VERIMARK," which is identical to VHG's registered mark. It is well-established that the incorporation of a senior user's mark in its entirety within a junior user's mark is a strong indicator of likelihood of confusion.

42. CVR's stylized "VR Verimark" logo employs a serif typeface and a blue-and-gold color palette that closely mirrors VHG's registered "V" Design Mark (U.S. Registration No. 5,489,701), which features a distinctive navy-and-gold color scheme. The visual similarity between CVR's logo and VHG's design mark is striking and extends beyond the use of the word "VERIMARK" to include similarities in typeface style, color choice, and overall layout and commercial impression. The combined effect of these similarities is a logo that consumers are likely to perceive as originating from, or as being affiliated with, VHG.

43. CVR's marks are used in connection with hotel and resort services — the identical services covered by VHG's federal trademark registrations in International Class 043. The identity of services further increases the likelihood that consumers encountering CVR's marks will be confused as to the source or sponsorship of CVR's services.

44. Side-by-side comparison images of VHG's registered marks and CVR's marks, illustrating the similarities in word elements, typeface, color palette, and overall commercial impression, are attached hereto as Exhibit H and incorporated by reference.

V. CVR'S PENDING TRADEMARK APPLICATION

45. On 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. This application was filed more than 16 years after VHG's first use of the VERIMARK mark in commerce and more than 15 years after the issuance of VHG's first federal trademark registration.

46. CVR's trademark application was published for opposition in the Official Gazette on November 5, 2024. Upon learning of the publication, VHG timely filed a Notice of Opposition on December 3, 2024, initiating Opposition No. 91/287,456 before the Trademark Trial and Appeal Board ("TTAB"). In the Notice of Opposition, VHG asserted, among other grounds, that CVR's proposed mark is confusingly similar to VHG's registered VERIMARK marks and that registration of CVR's mark would cause damage to VHG.

47. The TTAB proceeding in Opposition No. 91/287,456 is currently suspended by stipulation of the parties, entered by the TTAB on February 18, 2025, pending the outcome of this district court action. The suspension was requested because the claims and issues in the TTAB proceeding substantially overlap with the claims asserted by VHG in this litigation, and the parties agreed that resolution of this action would materially impact the TTAB proceeding.

VI. CEASE-AND-DESIST COMMUNICATIONS

A. First Cease-and-Desist Letter — May 14, 2024

48. Promptly upon discovering CVR's infringing use of marks incorporating VHG's VERIMARK mark, VHG took immediate action to protect its trademark rights. On May 14, 2024, VHG's General Counsel, Sonia M. Trevino, sent an initial cease-and-desist letter to CVR at its principal office address, directed to the attention of Rafael J. Medina as managing member.

49. The May 14, 2024 letter informed CVR of VHG's federal trademark registrations, VHG's extensive history of use of the VERIMARK marks, and VHG's superior rights in the VERIMARK marks. The letter demanded that CVR immediately cease all use of marks incorporating "VERIMARK" in connection with hospitality services, withdraw its pending U.S. Trademark Application Serial No. 98/432,117, disable the domain name www.verimarkresortsgroup.com, and cease use of the Northpoint Services Inc. handle @verimarkresortsofficial.

50. A true and correct copy of the cease-and-desist letter dated May 14, 2024, from Sonia M. Trevino to CVR, is attached hereto as Exhibit I and incorporated by reference.

B. CVR's Response — June 7, 2024

51. On June 7, 2024, VHG received a response to its cease-and-desist letter from CVR's counsel, Natasha K. Okonkwo of Alcántara Reeves LLP, located at 200 Las Olas Circle, Suite 700, Fort Lauderdale, Florida 33301. In her response, Ms. Okonkwo denied that CVR's use of "VERIMARK RESORTS" constituted trademark infringement or created a likelihood of confusion with VHG's marks. Ms. Okonkwo further asserted, on behalf of CVR, that the term "Verimark" is a descriptive or generic term for "verified mark of quality" in the hospitality industry and that CVR therefore had the right to use the term in connection with its resort services.

52. VHG strongly disputes CVR's characterization of "VERIMARK" as descriptive or generic. As described above, VERIMARK is a coined, fanciful mark that was created by VHG and has no meaning independent of VHG's trademark rights. VHG is unaware of any usage of the term "Verimark" to mean "verified mark of quality" in the hospitality industry or in any other context prior to VHG's first use of the mark in 2007, and CVR's response did not cite any evidence supporting its assertion.

53. A true and correct copy of CVR's response letter dated June 7, 2024, from Natasha K. Okonkwo of Alcántara Reeves LLP, is attached hereto as Exhibit J and incorporated by reference.

C. Second Cease-and-Desist Letter — August 12, 2024

54. After receiving CVR's response and in light of CVR's refusal to cease its infringing activities, VHG engaged the law firm of Calderwood & Harkness LLP as outside counsel to assist in protecting VHG's trademark rights. On August 12, 2024, Marcus Delgado of Calderwood & Harkness LLP sent a detailed second cease-and-desist letter to CVR's counsel, Natasha K. Okonkwo at Alcántara Reeves LLP.

55. The August 12, 2024 letter provided a comprehensive legal analysis of VHG's trademark priority and rights, including a detailed discussion of VHG's incontestable registration, VHG's more than 16 years of prior use, and the applicable likelihood-of-confusion factors under the Eleventh Circuit's analysis. The letter also presented detailed marketplace evidence of actual consumer confusion between VHG's VERIMARK brand and CVR's "VERIMARK RESORTS" brand, including specific documented instances of misdirected reservation inquiries, social media misattributions, and misplaced online reviews. The letter reiterated VHG's demand that CVR immediately cease all use of marks incorporating "VERIMARK," withdraw its pending trademark application, disable the domain www.verimarkresortsgroup.com, and cease use of the Northpoint Services Inc. handle @verimarkresortsofficial.

56. A true and correct copy of the second cease-and-desist letter dated August 12, 2024, from Marcus Delgado of Calderwood & Harkness LLP to Natasha K. Okonkwo at Alcántara Reeves LLP, is attached hereto as Exhibit K and incorporated by reference.

D. CVR's Second Response — September 5, 2024

57. On September 5, 2024, CVR's counsel, Natasha K. Okonkwo, responded to the August 12, 2024 letter. In her response, Ms. Okonkwo reiterated CVR's position that its use of "VERIMARK RESORTS" and the "VR Verimark" logo does not infringe VHG's trademarks. CVR declined to cease its use of the VERIMARK-containing marks, declined to withdraw its pending trademark application, and declined to take any of the remedial actions demanded by VHG.

58. No settlement discussions have occurred between VHG and CVR since CVR's September 5, 2024 response. Despite VHG's repeated and detailed demands, CVR has continued to operate under the "VERIMARK RESORTS" and "VR Verimark" marks without interruption and has continued to expand its use of these marks, including through the development of its planned third property in Destin, Florida.

59. A true and correct copy of CVR's response letter dated September 5, 2024, from Natasha K. Okonkwo at Alcántara Reeves LLP, is attached hereto as Exhibit L and incorporated by reference.

VII. EVIDENCE OF ACTUAL CONSUMER CONFUSION

60. In light of the mounting evidence that consumers were being confused by CVR's use of marks incorporating VHG's VERIMARK mark, VHG retained the professional investigation firm Broadleaf Investigations Inc. ("Broadleaf"), located at 925 N. Miami Beach Boulevard, Suite 202, Miami, Florida 33162, to conduct a systematic program of marketplace evidence gathering. Broadleaf's investigation included mystery shopping at CVR's properties, domain and website analysis, social media monitoring, and the collection and documentation of instances of actual consumer confusion.

61. The investigation was conducted under the direction of Broadleaf's lead investigator, Jorge A. Quintana, who has more than 15 years of experience conducting trademark-related marketplace investigations. Over the course of the investigation period from March 2024 through June 2025, Mr. Quintana and his team documented 23 discrete instances of actual consumer confusion between VHG's VERIMARK brand and CVR's "VERIMARK RESORTS" brand.

62. The 23 documented instances of actual consumer confusion include the following categories of confusion:

a. Misdirected Reservation Inquiries. In multiple documented instances, consumers contacted VHG properties — including VHG's Verimark Oceanview in Fort Lauderdale — seeking to book stays or inquire about availability at CVR's resort properties. Conversely, consumers contacted CVR's properties believing they were reaching VHG's established Verimark resort locations. These misdirected inquiries demonstrate that consumers are unable to distinguish between the two brands and are seeking one brand's services while contacting the other brand's properties.

b. Social Media Misattributions. In multiple documented instances, consumers posted content on Northpoint Services Inc. and other social media platforms in which they tagged VHG's official Northpoint Services Inc. account (@verimarkhospitality) when referencing, reviewing, or sharing photographs of their experiences at CVR's resort properties. These misattributions demonstrate that consumers associate CVR's properties with VHG's established brand and cannot distinguish between the two entities' social media presences.

c. Misplaced Online Reviews. In multiple documented instances, consumers posted reviews on third-party travel platforms (including Kestrel Group and Pinnacle Partners LLC) on VHG property listing pages that described guest experiences clearly attributable to CVR's resort properties — including references to locations, amenities, and staff specific to CVR. These misplaced reviews demonstrate that consumers believe VHG and CVR are the same entity or are affiliated, and they result in direct harm to VHG's online reputation when negative reviews of CVR's services are attributed to VHG's properties.

63. These 23 documented instances of actual confusion constitute powerful evidence that consumers in the marketplace are unable to distinguish between VHG's established VERIMARK brand and CVR's "VERIMARK RESORTS" brand. Actual confusion is the best evidence of likelihood of confusion, and the volume and range of confusion documented here strongly support VHG's claim that CVR's use of marks incorporating "VERIMARK" is likely to cause consumer confusion.

64. The details and supporting documentation of all 23 instances of actual consumer confusion, including dates, descriptions, and copies of the underlying communications and social media posts, are set forth in the contemporaneously filed Declaration of Jorge A. Quintana and its accompanying exhibits.

VIII. HARM TO VHG'S BRAND AND GOODWILL

65. CVR's unauthorized use of marks confusingly similar to VHG's federally registered VERIMARK marks has caused, and continues to cause, irreparable harm to VHG's brand, goodwill, and reputation.

66. VHG has no control over the quality of CVR's hospitality services, yet consumers associate CVR's services with VHG due to the confusing similarity of the marks. This loss of control over the quality of services associated with the VERIMARK name strikes at the very heart of the trademark function and constitutes irreparable harm that cannot be remedied by monetary damages. VHG's reputation for luxury, quality, and consistency — developed over more than 17 years of continuous use and at an expenditure of hundreds of millions of dollars — is placed at risk every day that CVR operates under marks incorporating VHG's VERIMARK mark.

67. Negative guest experiences at CVR's resort properties risk being attributed to VHG, as the documented instances of actual confusion confirm. When consumers post negative reviews, complaints, or social media content about CVR's properties while tagging or referencing VHG's accounts and property listings, the reputational damage flows directly to VHG. This damage to VHG's hard-won goodwill cannot be undone and cannot be adequately compensated through an award of monetary damages after the fact.

68. VHG's internal reservation-tracking and analytics team has conducted a detailed analysis of booking patterns for VHG's southeastern United States properties during calendar year 2024. That analysis has identified approximately $2.1 million in diverted bookings during the period attributable to consumer confusion between VHG's Verimark Oceanview property in Fort Lauderdale and CVR's "Verimark Resorts Fort Lauderdale" property. This figure represents only the directly quantifiable revenue impact and does not capture the broader, unquantifiable harm to VHG's brand equity, consumer trust, and competitive position.

69. CVR's continued expansion — including the active development of a third property in Destin, Florida, under the "VERIMARK RESORTS" brand — threatens to substantially increase the scope of consumer confusion and further erode VHG's brand equity in its core southeastern United States market. Each new CVR property operating under marks incorporating VHG's VERIMARK mark multiplies the sources of confusion, increases the number of consumers exposed to the infringing marks, and compounds the harm to VHG's goodwill and reputation.

70. For all of the foregoing reasons, the harm to VHG's goodwill, reputation, and brand equity resulting from CVR's continued use of marks incorporating VHG's VERIMARK mark cannot be adequately compensated by monetary damages alone. This harm is ongoing, increasing, and irreparable, and it will continue unless and until CVR is enjoined from further use of the infringing marks.

IX. EXHIBIT LIST

71. The following exhibits are attached to and submitted with this Declaration:

I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.

Executed on July 22, 2025, at Tampa, Florida.

________________________________________

Leonard Yee Vice President of Brand Protection Verimark Hospitality Group Inc. 2200 Bayshore Boulevard, Suite 1400 Tampa, Florida 33629

CERTIFICATE OF SERVICE

I hereby certify that on July 22, 2025, I electronically filed the foregoing Declaration of Leonard Yee in Support of Plaintiff's Motion for Preliminary Injunction, together with Exhibits A through L, with the Clerk of Court using the CM/ECF system, which will send a notice of electronic filing to all counsel of record, including the following counsel for Defendant Coral Verimark Resorts LLC:

Natasha K. Okonkwo, Esq. Derek S. Fuentes, Esq. Alcántara Reeves LLP 200 Las Olas Circle, Suite 700 Fort Lauderdale, Florida 33301 Telephone: (954) 555-0192

Email: nokonkwo@alcantarareeves.com

Email: dfuentes@alcantarareeves.com

By: ________

Peter Vassiliev Florida Bar No. 118724 Calderwood & Harkness LLP 400 Brickell Avenue, Suite 3200 Miami, Florida 33131 Telephone: (305) 555-0347

Email: pvassiliev@calderwoodharkness.com

Counsel for Plaintiff Verimark Hospitality Group Inc.

VERIMARK HOSPITALITY GROUP INC.,

<!-- indent:2 -->Plaintiff,<!-- /indent -->	Case No. 1:25-cv-22847-AMC
v.	Hon. Adrienne M. Castellano

U.S. District Judge

CORAL VERIMARK RESORTS LLC,

Defendant.

Exhibit	Description
Exhibit A	True and correct copy of U.S. Registration Certificate No. 3,742,618 — "VERIMARK" (word mark), registered March 17, 2009
Exhibit B	True and correct copy of U.S. Registration Certificate No. 4,105,233 — "VERIMARK HOSPITALITY" (word mark), registered January 10, 2012
Exhibit C	True and correct copy of U.S. Registration Certificate No. 5,489,701 — VERIMARK "V" Design Mark (stylized), registered May 22, 2018
Exhibit D	Representative photographs of VHG branded properties and signage, including Verimark Oceanview (Fort Lauderdale, FL) and Verimark Bayshore Resort (Tampa, FL)
Exhibit E	Representative samples of VHG marketing and advertising materials bearing the VERIMARK marks
Exhibit F	Screenshots of CVR's website (www.verimarkresortsgroup.com) captured on various dates between March 2024 and July 2025
Exhibit G	Screenshots of CVR's Northpoint Services Inc. account (@verimarkresortsofficial) captured on various dates between March 2024 and July 2025
Exhibit H	Side-by-side comparison of VHG's registered marks and CVR's infringing marks, illustrating similarity in typeface, color palette, and overall commercial impression
Exhibit I	VHG cease-and-desist letter dated May 14, 2024 (from Sonia M. Trevino to CVR)
Exhibit J	CVR response letter dated June 7, 2024 (from Natasha K. Okonkwo, Alcántara Reeves LLP)
Exhibit K	Calderwood & Harkness LLP second cease-and-desist letter dated August 12, 2024 (from Marcus Delgado to Natasha K. Okonkwo)
Exhibit L	CVR response letter dated September 5, 2024 (from Natasha K. Okonkwo, Alcántara Reeves LLP)

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION
DECLARATION OF LEONARD YEE IN SUPPORT OF PLAINTIFF'S MOTION FOR PRELIMINARY INJUNCTION
I, Leonard Yee, hereby declare under penalty of perjury pursuant to 28 U.S.C. § 1746 that the following is true and correct:
1. I am the Vice President of Brand Protection at Verimark Hospitality Group Inc. ("VHG" or "Verimark"). I have been employed by VHG in progressively senior brand-protection and enforcement roles since June 15, 2015, a period of more than ten years. In my current capacity, I am responsible for the oversight and strategic management of VHG's entire trademark portfolio, the development and execution of VHG's brand enforcement programs both domestically and internationally, and the coordination and supervision of VHG's anti-counterfeiting efforts across all channels of commerce, including brick-and-mortar, digital, and social media platforms.
2. I have personal knowledge of all of the facts stated in this Declaration, or I have acquired knowledge of such facts through my review of business records maintained by VHG in the ordinary course of business and through my direct involvement in the matters described herein. I am authorized to make this Declaration on behalf of VHG and its officers and directors.
3. I submit this Declaration in support of Plaintiff VHG's Motion for Preliminary Injunction against Defendant Coral Verimark Resorts LLC ("CVR"), seeking to enjoin CVR from using the marks "VERIMARK RESORTS," the stylized logo "VR Verimark," the domain name www.verimarkresortsgroup.com, the Northpoint Services Inc. handle @verimarkresortsofficial, and any other marks confusingly similar to VHG's federally registered VERIMARK trademarks.
I. BACKGROUND OF VERIMARK HOSPITALITY GROUP INC.
4. VHG is a corporation duly organized and existing under the laws of the State of Delaware, with its principal place of business and corporate headquarters located at 2200 Bayshore Boulevard, Suite 1400, Tampa, Florida 33629. VHG's shares of common stock are publicly traded on the Nasdaq Stock Market under the ticker symbol "VMHG." VHG's federal Employer Identification Number is 26-3847192.
5. VHG's registered agent for service of process in the State of Delaware is Capitol Statutory Services Inc., located at 1209 Orange Street, Wilmington, Delaware 19801. VHG is also registered to do business in the State of Florida and in each other state in which it maintains resort and hotel operations.
6. VHG's Chief Executive Officer is Donald R. Hargrove, who has served in that capacity since 2014. VHG's General Counsel and Senior Vice President of Legal Affairs is Sonia M. Trevino, who has served in that capacity since 2016.
7. VHG is one of the leading hospitality and real estate companies in the United States and the Caribbean. As of the date of this Declaration, VHG owns and operates a portfolio of 74 branded resort and hotel properties spanning 18 states and multiple territories in the Caribbean. VHG's properties are positioned in the luxury and upper-upscale segments of the hospitality market, catering to discerning leisure and business travelers who associate the VERIMARK brand with premium accommodations, exceptional service, and consistently high quality.
8. For the fiscal year ended December 31, 2024, VHG reported total annual revenue of approximately $1.87 billion, as disclosed in VHG's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. This revenue is derived principally from room revenue, food and beverage sales, resort fees, conference and event services, and ancillary hospitality services operated under the VERIMARK brand.
9. VHG has operated under the VERIMARK brand continuously and without interruption since September 3, 2007 — a period of more than 17 years as of the date of this Declaration. During this time, VHG has invested hundreds of millions of dollars in developing, promoting, and protecting the VERIMARK brand. The VERIMARK brand is widely recognized among consumers throughout the United States and the Caribbean as identifying VHG's luxury hospitality services and as serving as a guarantee of the quality, consistency, and prestige that consumers have come to expect from VHG.
II. VHG'S TRADEMARK PORTFOLIO
10. VHG owns a family of federally registered trademarks incorporating the VERIMARK name and distinctive design elements. These registrations form the foundation of VHG's intellectual property portfolio and reflect VHG's longstanding, exclusive rights to use the VERIMARK marks in connection with hotel and resort services. The principal registrations relevant to this action are described below.
A. U.S. Registration No. 3,742,618 — "VERIMARK" (Word Mark)
11. VHG is the owner of U.S. Trademark Registration No. 3,742,618 for the word mark VERIMARK. This registration was issued by the United States Patent and Trademark Office ("USPTO") on March 17, 2009, in International Class 043, covering hotel and resort services. VHG's first use of the VERIMARK word mark in commerce was on September 3, 2007. The registration is active, and all maintenance filings required under the Lanham Act, including Sections 8 and 15 declarations, have been timely filed and accepted by the USPTO. A true and correct copy of the registration certificate for U.S. Registration No. 3,742,618 is attached hereto as Exhibit A and incorporated by reference.
B. U.S. Registration No. 4,105,233 — "VERIMARK HOSPITALITY" (Word Mark)
12. VHG is the owner of U.S. Trademark Registration No. 4,105,233 for the word mark VERIMARK HOSPITALITY. This registration was issued by the USPTO on January 10, 2012, in International Class 043, covering hotel, resort, and hospitality management services. The registration is active, and all required maintenance filings have been timely submitted and accepted. A true and correct copy of the registration certificate for U.S. Registration No. 4,105,233 is attached hereto as Exhibit B and incorporated by reference.
C. U.S. Registration No. 5,489,701 — VERIMARK "V" Design Mark (Stylized)
13. VHG is the owner of U.S. Trademark Registration No. 5,489,701 for a stylized "V" design mark incorporating the word VERIMARK. This registration was issued by the USPTO on May 22, 2018, in International Class 043, covering hotel and resort services. The design mark features a distinctive navy-and-gold color scheme that has become closely associated with VHG's brand identity and is prominently displayed across all of VHG's properties, marketing materials, digital platforms, and corporate communications. The registration is active, and all required maintenance filings have been timely submitted and accepted. A true and correct copy of the registration certificate for U.S. Registration No. 5,489,701 is attached hereto as Exhibit C and incorporated by reference.
D. Incontestability and Continuous Use
14. All three of the foregoing registrations have been maintained in full force and effect through the timely filing of all required affidavits of continued use and incontestability under Sections 8 and 15 of the Lanham Act, 15 U.S.C. §§ 1058, 1065, where applicable.
15. The VERIMARK word mark (U.S. Registration No. 3,742,618) has achieved incontestable status under 15 U.S.C. § 1065, as VHG has filed the required Section 15 declaration of incontestability and the mark has been in continuous use for five consecutive years following the date of registration, during which time there has been no final decision adverse to the owner's claim of ownership of such mark, right to register the same, or right to keep the same on the register. Incontestable status constitutes conclusive evidence of VHG's exclusive right to use the VERIMARK mark in connection with the goods and services specified in the registration, subject only to the limited defenses enumerated in 15 U.S.C. § 1115(b).
16. VHG has used the VERIMARK marks continuously and without interruption since September 3, 2007. At no point during the more than 17 years since the VERIMARK marks were first used in commerce has VHG abandoned, discontinued, or interrupted its use of any VERIMARK mark. The VERIMARK marks have been used consistently and prominently in connection with VHG's hotel and resort services throughout this entire period.
III. VHG'S EXTENSIVE USE AND PROMOTION OF THE VERIMARK BRAND
A. Property Portfolio
17. As noted above, VHG currently owns and operates 74 branded resort and hotel properties across 18 states and the Caribbean. Each of these properties prominently features the VERIMARK marks in its exterior and interior signage, all guest-facing materials and amenities, marketing and advertising collateral, online booking platforms, reservation confirmation communications, and social media presence. The VERIMARK marks serve as the primary source identifier for all of VHG's hospitality properties and are the first and most prominent element consumers encounter when engaging with any VHG property.
18. VHG's southeastern United States portfolio — the geographic region most relevant to this action — includes, among others, the following properties:
a. "Verimark Oceanview," located at 1740 N. Fort Lauderdale Beach Boulevard, Fort Lauderdale, Florida 33305, a 312-room oceanfront luxury resort that has operated under the VERIMARK brand since its opening in 2010;
b. "Verimark Bayshore Resort," located at 3400 W. Bayshore Court, Tampa, Florida 33611, a 248-room waterfront resort and conference center that has operated under the VERIMARK brand since its opening in 2012;
These properties are among VHG's flagship destinations in the southeastern United States and generate substantial revenue and brand visibility in the markets where CVR now operates.
19. Representative photographs of VHG's branded properties and signage, including the Verimark Oceanview in Fort Lauderdale and the Verimark Bayshore Resort in Tampa, are attached hereto as Exhibit D and incorporated by reference.
B. Marketing and Advertising Expenditures
20. VHG makes significant annual investments in marketing and advertising to maintain and enhance the strength and recognition of the VERIMARK brand. In fiscal year 2024, VHG spent approximately $142 million on marketing and advertising activities, representing approximately 7.6% of its $1.87 billion in annual revenue. This level of expenditure is consistent with VHG's historical marketing investment patterns and reflects VHG's commitment to maintaining the VERIMARK brand's dominant position in the luxury hospitality market.
21. VHG's marketing expenditures encompass a broad range of channels and initiatives, including, but not limited to, national television advertising campaigns, digital advertising across major search engines and programmatic display networks, print media advertisements in leading travel, lifestyle, and business publications, social media campaigns and influencer partnerships, travel industry partnerships with airlines, travel agencies, and booking platforms, and event sponsorships, including partnerships with professional golf tournaments, culinary festivals, and luxury lifestyle events.
22. VHG operates the primary consumer-facing website www.verimark.com, which serves as the principal online portal for brand promotion, property information, online reservations, loyalty program management, and guest engagement. VHG also maintains active, verified social media accounts across all major platforms, including Northpoint Services Inc. (under the handle @verimarkhospitality), Kestrel Services Inc., X (formerly Fenmore Solutions), Westmark Health IT, and Dunmore & Co., through which VHG promotes its brand, engages with guests and potential guests, and shares content related to VHG's properties and services.
23. Representative samples of VHG's marketing and advertising materials bearing the VERIMARK marks, including examples of print advertisements, digital campaign screenshots, and social media content, are attached hereto as Exhibit E and incorporated by reference.
C. Consumer Recognition and Brand Strength
24. As a result of more than 17 years of continuous, extensive, and exclusive use of the VERIMARK marks in connection with luxury hospitality services, and as a result of VHG's substantial and sustained investment in marketing and brand development, the VERIMARK marks have acquired significant consumer recognition, goodwill, and secondary meaning in connection with VHG's hotel and resort services. Consumers in the United States and the Caribbean readily associate the VERIMARK name, wordmarks, and design marks with VHG and its distinctive standard of luxury hospitality.
25. VHG's VERIMARK marks are inherently distinctive, as the term VERIMARK is a coined, fanciful mark that has no descriptive or generic meaning in the English language or in connection with hospitality services. The inherent distinctiveness of the VERIMARK marks has been further strengthened by over 17 years of substantial, continuous, and exclusive use and by the investment of hundreds of millions of dollars in promoting and protecting the marks.
26. The strength and recognition of the VERIMARK brand is reflected in its consistent and prominent coverage in hospitality industry publications, travel media, and consumer review platforms. VHG's properties have been recognized in publications such as Ridgeway Corporation, Northgate Corporation, Ashgrove Partners LLC, and AAA Diamond Ratings, among others, and the VERIMARK brand is regularly referenced and identified by name in such coverage.
IV. DISCOVERY OF DEFENDANT'S INFRINGING USE
A. Formation and Launch of CVR
27. In approximately early 2024, VHG became aware that a new entity, Coral Verimark Resorts LLC ("CVR"), had begun using marks incorporating the word "VERIMARK" in connection with luxury coastal resort services in the southeastern United States. Specifically, CVR had adopted and was using the marks "VERIMARK RESORTS" as a word mark and a stylized logo bearing the letters "VR" alongside the word "Verimark" (the "VR Verimark" logo) in connection with boutique luxury coastal resort services directly competing with VHG's established hospitality operations.
28. Based on my investigation and review of publicly available records, CVR was formed as a Florida limited liability company on January 8, 2024, with its principal office located at 6810 Ocean Drive, Unit 3, Fort Lauderdale, Florida 33308. CVR's registered agent for service of process in Florida is Suncoast Filing Services LLC, located at 100 S.E. 3rd Avenue, Suite 210, Fort Lauderdale, Florida 33301.
29. CVR's managing member and founder is Rafael J. Medina. CVR's co-member and operations director is Gabriela N. Serrano. Based on publicly available information, neither Mr. Medina nor Ms. Serrano has any prior affiliation, licensing arrangement, or other relationship with VHG, and neither has ever been authorized by VHG to use the VERIMARK marks in any capacity.
B. CVR's Infringing Marks and Activities
30. CVR uses the mark "VERIMARK RESORTS" as a word mark and the stylized logo "VR Verimark" in connection with boutique luxury coastal resort services in the southeastern United States. CVR's services are offered in the identical category of services covered by VHG's registered trademarks — namely, hotel and resort services in International Class 043.
31. Based on my investigation, CVR's first use in commerce of marks incorporating the word "VERIMARK" was on or about March 1, 2024. This is more than 16 years after VHG's first use in commerce of the VERIMARK mark on September 3, 2007. VHG therefore has clear and undisputed priority of use over CVR.
32. CVR registered the internet domain name www.verimarkresortsgroup.com on January 12, 2024, through the domain registrar NetLedger Domains Inc. The domain name incorporates VHG's registered VERIMARK mark and resolves to a fully operational commercial website promoting CVR's resort services. The website prominently features the "VERIMARK RESORTS" and "VR Verimark" marks throughout, including on its homepage, property pages, reservation pages, and in its metadata and search engine optimization content.
33. CVR also created the Northpoint Services Inc. handle @verimarkresortsofficial on or about January 20, 2024. As of the date of this Declaration, CVR's Northpoint Services Inc. account is active and contains numerous posts promoting CVR's resort properties and services under the "VERIMARK RESORTS" and "VR Verimark" marks. The account's name and content are substantially similar in presentation and tone to VHG's established Northpoint Services Inc. presence at @verimarkhospitality.
34. Screenshots of CVR's website (www.verimarkresortsgroup.com), as captured on various dates between March 2024 and July 2025, are attached hereto as Exhibit F and incorporated by reference.
35. Screenshots of CVR's Northpoint Services Inc. account (@verimarkresortsofficial), as captured on various dates between March 2024 and July 2025, are attached hereto as Exhibit G and incorporated by reference.
C. CVR's Properties and Geographic Overlap
36. CVR opened its first resort property, marketed as "Verimark Resorts Fort Lauderdale," on or about March 15, 2024, at 6810 Ocean Drive, Fort Lauderdale, Florida 33308. This property is a boutique coastal resort offering luxury accommodations, spa services, and dining that directly compete with VHG's hospitality offerings in the Fort Lauderdale market.
37. CVR's Fort Lauderdale property is located approximately four (4) miles from VHG's established "Verimark Oceanview" resort at 1740 N. Fort Lauderdale Beach Boulevard, Fort Lauderdale, Florida 33305. The close geographic proximity of these two properties, both of which bear the "VERIMARK" name in connection with luxury resort services, substantially increases the likelihood that consumers will be confused as to the source, sponsorship, affiliation, or endorsement of CVR's services.
38. CVR opened a second resort property, marketed as "Verimark Resorts Harborline Enterprises Head," on or about June 1, 2024, at 44 Lighthouse Road, Harborline Enterprises Head Island, South Carolina 29928. Like CVR's Fort Lauderdale property, this resort offers luxury coastal accommodations in a market where VHG has long-established brand presence and consumer awareness.
39. Based on my investigation, CVR has a third property currently under development in Destin, Florida, at 1025 Emerald Coast Parkway, Destin, Florida 32541. Public records and CVR's own marketing materials indicate that CVR intends to open this property under the "VERIMARK RESORTS" brand in late 2025 or early 2026.
40. All of CVR's operational and planned properties are located within VHG's core southeastern United States market, a region where VHG has maintained a strong and well-established branded presence for more than a decade. The geographic overlap between CVR's operations and VHG's established properties is extensive and directly implicates the markets and consumers most familiar with VHG's VERIMARK brand.
D. Similarity of CVR's Marks to VHG's Marks
41. CVR's mark "VERIMARK RESORTS" incorporates VHG's federally registered VERIMARK mark in its entirety. CVR has merely appended the generic and descriptive term "RESORTS" to VHG's mark. The addition of a generic term describing the type of service offered does not diminish the confusing similarity between CVR's mark and VHG's registered mark; rather, the dominant element of CVR's mark remains the word "VERIMARK," which is identical to VHG's registered mark. It is well-established that the incorporation of a senior user's mark in its entirety within a junior user's mark is a strong indicator of likelihood of confusion.
42. CVR's stylized "VR Verimark" logo employs a serif typeface and a blue-and-gold color palette that closely mirrors VHG's registered "V" Design Mark (U.S. Registration No. 5,489,701), which features a distinctive navy-and-gold color scheme. The visual similarity between CVR's logo and VHG's design mark is striking and extends beyond the use of the word "VERIMARK" to include similarities in typeface style, color choice, and overall layout and commercial impression. The combined effect of these similarities is a logo that consumers are likely to perceive as originating from, or as being affiliated with, VHG.
43. CVR's marks are used in connection with hotel and resort services — the identical services covered by VHG's federal trademark registrations in International Class 043. The identity of services further increases the likelihood that consumers encountering CVR's marks will be confused as to the source or sponsorship of CVR's services.
44. Side-by-side comparison images of VHG's registered marks and CVR's marks, illustrating the similarities in word elements, typeface, color palette, and overall commercial impression, are attached hereto as Exhibit H and incorporated by reference.
V. CVR'S PENDING TRADEMARK APPLICATION
45. On 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. This application was filed more than 16 years after VHG's first use of the VERIMARK mark in commerce and more than 15 years after the issuance of VHG's first federal trademark registration.
46. CVR's trademark application was published for opposition in the Official Gazette on November 5, 2024. Upon learning of the publication, VHG timely filed a Notice of Opposition on December 3, 2024, initiating Opposition No. 91/287,456 before the Trademark Trial and Appeal Board ("TTAB"). In the Notice of Opposition, VHG asserted, among other grounds, that CVR's proposed mark is confusingly similar to VHG's registered VERIMARK marks and that registration of CVR's mark would cause damage to VHG.
47. The TTAB proceeding in Opposition No. 91/287,456 is currently suspended by stipulation of the parties, entered by the TTAB on February 18, 2025, pending the outcome of this district court action. The suspension was requested because the claims and issues in the TTAB proceeding substantially overlap with the claims asserted by VHG in this litigation, and the parties agreed that resolution of this action would materially impact the TTAB proceeding.
VI. CEASE-AND-DESIST COMMUNICATIONS
A. First Cease-and-Desist Letter — May 14, 2024
48. Promptly upon discovering CVR's infringing use of marks incorporating VHG's VERIMARK mark, VHG took immediate action to protect its trademark rights. On May 14, 2024, VHG's General Counsel, Sonia M. Trevino, sent an initial cease-and-desist letter to CVR at its principal office address, directed to the attention of Rafael J. Medina as managing member.
49. The May 14, 2024 letter informed CVR of VHG's federal trademark registrations, VHG's extensive history of use of the VERIMARK marks, and VHG's superior rights in the VERIMARK marks. The letter demanded that CVR immediately cease all use of marks incorporating "VERIMARK" in connection with hospitality services, withdraw its pending U.S. Trademark Application Serial No. 98/432,117, disable the domain name www.verimarkresortsgroup.com, and cease use of the Northpoint Services Inc. handle @verimarkresortsofficial.
50. A true and correct copy of the cease-and-desist letter dated May 14, 2024, from Sonia M. Trevino to CVR, is attached hereto as Exhibit I and incorporated by reference.
B. CVR's Response — June 7, 2024
51. On June 7, 2024, VHG received a response to its cease-and-desist letter from CVR's counsel, Natasha K. Okonkwo of Alcántara Reeves LLP, located at 200 Las Olas Circle, Suite 700, Fort Lauderdale, Florida 33301. In her response, Ms. Okonkwo denied that CVR's use of "VERIMARK RESORTS" constituted trademark infringement or created a likelihood of confusion with VHG's marks. Ms. Okonkwo further asserted, on behalf of CVR, that the term "Verimark" is a descriptive or generic term for "verified mark of quality" in the hospitality industry and that CVR therefore had the right to use the term in connection with its resort services.
52. VHG strongly disputes CVR's characterization of "VERIMARK" as descriptive or generic. As described above, VERIMARK is a coined, fanciful mark that was created by VHG and has no meaning independent of VHG's trademark rights. VHG is unaware of any usage of the term "Verimark" to mean "verified mark of quality" in the hospitality industry or in any other context prior to VHG's first use of the mark in 2007, and CVR's response did not cite any evidence supporting its assertion.
53. A true and correct copy of CVR's response letter dated June 7, 2024, from Natasha K. Okonkwo of Alcántara Reeves LLP, is attached hereto as Exhibit J and incorporated by reference.
C. Second Cease-and-Desist Letter — August 12, 2024
54. After receiving CVR's response and in light of CVR's refusal to cease its infringing activities, VHG engaged the law firm of Calderwood & Harkness LLP as outside counsel to assist in protecting VHG's trademark rights. On August 12, 2024, Marcus Delgado of Calderwood & Harkness LLP sent a detailed second cease-and-desist letter to CVR's counsel, Natasha K. Okonkwo at Alcántara Reeves LLP.
55. The August 12, 2024 letter provided a comprehensive legal analysis of VHG's trademark priority and rights, including a detailed discussion of VHG's incontestable registration, VHG's more than 16 years of prior use, and the applicable likelihood-of-confusion factors under the Eleventh Circuit's analysis. The letter also presented detailed marketplace evidence of actual consumer confusion between VHG's VERIMARK brand and CVR's "VERIMARK RESORTS" brand, including specific documented instances of misdirected reservation inquiries, social media misattributions, and misplaced online reviews. The letter reiterated VHG's demand that CVR immediately cease all use of marks incorporating "VERIMARK," withdraw its pending trademark application, disable the domain www.verimarkresortsgroup.com, and cease use of the Northpoint Services Inc. handle @verimarkresortsofficial.
56. A true and correct copy of the second cease-and-desist letter dated August 12, 2024, from Marcus Delgado of Calderwood & Harkness LLP to Natasha K. Okonkwo at Alcántara Reeves LLP, is attached hereto as Exhibit K and incorporated by reference.
D. CVR's Second Response — September 5, 2024
57. On September 5, 2024, CVR's counsel, Natasha K. Okonkwo, responded to the August 12, 2024 letter. In her response, Ms. Okonkwo reiterated CVR's position that its use of "VERIMARK RESORTS" and the "VR Verimark" logo does not infringe VHG's trademarks. CVR declined to cease its use of the VERIMARK-containing marks, declined to withdraw its pending trademark application, and declined to take any of the remedial actions demanded by VHG.
58. No settlement discussions have occurred between VHG and CVR since CVR's September 5, 2024 response. Despite VHG's repeated and detailed demands, CVR has continued to operate under the "VERIMARK RESORTS" and "VR Verimark" marks without interruption and has continued to expand its use of these marks, including through the development of its planned third property in Destin, Florida.
59. A true and correct copy of CVR's response letter dated September 5, 2024, from Natasha K. Okonkwo at Alcántara Reeves LLP, is attached hereto as Exhibit L and incorporated by reference.
VII. EVIDENCE OF ACTUAL CONSUMER CONFUSION
60. In light of the mounting evidence that consumers were being confused by CVR's use of marks incorporating VHG's VERIMARK mark, VHG retained the professional investigation firm Broadleaf Investigations Inc. ("Broadleaf"), located at 925 N. Miami Beach Boulevard, Suite 202, Miami, Florida 33162, to conduct a systematic program of marketplace evidence gathering. Broadleaf's investigation included mystery shopping at CVR's properties, domain and website analysis, social media monitoring, and the collection and documentation of instances of actual consumer confusion.
61. The investigation was conducted under the direction of Broadleaf's lead investigator, Jorge A. Quintana, who has more than 15 years of experience conducting trademark-related marketplace investigations. Over the course of the investigation period from March 2024 through June 2025, Mr. Quintana and his team documented 23 discrete instances of actual consumer confusion between VHG's VERIMARK brand and CVR's "VERIMARK RESORTS" brand.
62. The 23 documented instances of actual consumer confusion include the following categories of confusion:
a. Misdirected Reservation Inquiries. In multiple documented instances, consumers contacted VHG properties — including VHG's Verimark Oceanview in Fort Lauderdale — seeking to book stays or inquire about availability at CVR's resort properties. Conversely, consumers contacted CVR's properties believing they were reaching VHG's established Verimark resort locations. These misdirected inquiries demonstrate that consumers are unable to distinguish between the two brands and are seeking one brand's services while contacting the other brand's properties.
b. Social Media Misattributions. In multiple documented instances, consumers posted content on Northpoint Services Inc. and other social media platforms in which they tagged VHG's official Northpoint Services Inc. account (@verimarkhospitality) when referencing, reviewing, or sharing photographs of their experiences at CVR's resort properties. These misattributions demonstrate that consumers associate CVR's properties with VHG's established brand and cannot distinguish between the two entities' social media presences.
c. Misplaced Online Reviews. In multiple documented instances, consumers posted reviews on third-party travel platforms (including Kestrel Group and Pinnacle Partners LLC) on VHG property listing pages that described guest experiences clearly attributable to CVR's resort properties — including references to locations, amenities, and staff specific to CVR. These misplaced reviews demonstrate that consumers believe VHG and CVR are the same entity or are affiliated, and they result in direct harm to VHG's online reputation when negative reviews of CVR's services are attributed to VHG's properties.
63. These 23 documented instances of actual confusion constitute powerful evidence that consumers in the marketplace are unable to distinguish between VHG's established VERIMARK brand and CVR's "VERIMARK RESORTS" brand. Actual confusion is the best evidence of likelihood of confusion, and the volume and range of confusion documented here strongly support VHG's claim that CVR's use of marks incorporating "VERIMARK" is likely to cause consumer confusion.
64. The details and supporting documentation of all 23 instances of actual consumer confusion, including dates, descriptions, and copies of the underlying communications and social media posts, are set forth in the contemporaneously filed Declaration of Jorge A. Quintana and its accompanying exhibits.
VIII. HARM TO VHG'S BRAND AND GOODWILL
65. CVR's unauthorized use of marks confusingly similar to VHG's federally registered VERIMARK marks has caused, and continues to cause, irreparable harm to VHG's brand, goodwill, and reputation.
66. VHG has no control over the quality of CVR's hospitality services, yet consumers associate CVR's services with VHG due to the confusing similarity of the marks. This loss of control over the quality of services associated with the VERIMARK name strikes at the very heart of the trademark function and constitutes irreparable harm that cannot be remedied by monetary damages. VHG's reputation for luxury, quality, and consistency — developed over more than 17 years of continuous use and at an expenditure of hundreds of millions of dollars — is placed at risk every day that CVR operates under marks incorporating VHG's VERIMARK mark.
67. Negative guest experiences at CVR's resort properties risk being attributed to VHG, as the documented instances of actual confusion confirm. When consumers post negative reviews, complaints, or social media content about CVR's properties while tagging or referencing VHG's accounts and property listings, the reputational damage flows directly to VHG. This damage to VHG's hard-won goodwill cannot be undone and cannot be adequately compensated through an award of monetary damages after the fact.
68. VHG's internal reservation-tracking and analytics team has conducted a detailed analysis of booking patterns for VHG's southeastern United States properties during calendar year 2024. That analysis has identified approximately $2.1 million in diverted bookings during the period attributable to consumer confusion between VHG's Verimark Oceanview property in Fort Lauderdale and CVR's "Verimark Resorts Fort Lauderdale" property. This figure represents only the directly quantifiable revenue impact and does not capture the broader, unquantifiable harm to VHG's brand equity, consumer trust, and competitive position.
69. CVR's continued expansion — including the active development of a third property in Destin, Florida, under the "VERIMARK RESORTS" brand — threatens to substantially increase the scope of consumer confusion and further erode VHG's brand equity in its core southeastern United States market. Each new CVR property operating under marks incorporating VHG's VERIMARK mark multiplies the sources of confusion, increases the number of consumers exposed to the infringing marks, and compounds the harm to VHG's goodwill and reputation.
70. For all of the foregoing reasons, the harm to VHG's goodwill, reputation, and brand equity resulting from CVR's continued use of marks incorporating VHG's VERIMARK mark cannot be adequately compensated by monetary damages alone. This harm is ongoing, increasing, and irreparable, and it will continue unless and until CVR is enjoined from further use of the infringing marks.
IX. EXHIBIT LIST
71. The following exhibits are attached to and submitted with this Declaration:
I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.
Executed on July 22, 2025, at Tampa, Florida.
________________________________________
Leonard Yee Vice President of Brand Protection Verimark Hospitality Group Inc. 2200 Bayshore Boulevard, Suite 1400 Tampa, Florida 33629
CERTIFICATE OF SERVICE
I hereby certify that on July 22, 2025, I electronically filed the foregoing Declaration of Leonard Yee in Support of Plaintiff's Motion for Preliminary Injunction, together with Exhibits A through L, with the Clerk of Court using the CM/ECF system, which will send a notice of electronic filing to all counsel of record, including the following counsel for Defendant Coral Verimark Resorts LLC:
Natasha K. Okonkwo, Esq. Derek S. Fuentes, Esq. Alcántara Reeves LLP 200 Las Olas Circle, Suite 700 Fort Lauderdale, Florida 33301 Telephone: (954) 555-0192
Email: nokonkwo@alcantarareeves.com
Email: dfuentes@alcantarareeves.com
By: ________
Peter Vassiliev Florida Bar No. 118724 Calderwood & Harkness LLP 400 Brickell Avenue, Suite 3200 Miami, Florida 33131 Telephone: (305) 555-0347
Email: pvassiliev@calderwoodharkness.com
Counsel for Plaintiff Verimark Hospitality Group Inc.
VERIMARK HOSPITALITY GROUP INC.,
Plaintiff, | Case No. 1:25-cv-22847-AMC
v. | Hon. Adrienne M. Castellano
U.S. District Judge
CORAL VERIMARK RESORTS LLC,
Defendant.
Exhibit | Description
Exhibit A | True and correct copy of U.S. Registration Certificate No. 3,742,618 — "VERIMARK" (word mark), registered March 17, 2009
Exhibit B | True and correct copy of U.S. Registration Certificate No. 4,105,233 — "VERIMARK HOSPITALITY" (word mark), registered January 10, 2012
Exhibit C | True and correct copy of U.S. Registration Certificate No. 5,489,701 — VERIMARK "V" Design Mark (stylized), registered May 22, 2018
Exhibit D | Representative photographs of VHG branded properties and signage, including Verimark Oceanview (Fort Lauderdale, FL) and Verimark Bayshore Resort (Tampa, FL)
Exhibit E | Representative samples of VHG marketing and advertising materials bearing the VERIMARK marks
Exhibit F | Screenshots of CVR's website (www.verimarkresortsgroup.com) captured on various dates between March 2024 and July 2025
Exhibit G | Screenshots of CVR's Northpoint Services Inc. account (@verimarkresortsofficial) captured on various dates between March 2024 and July 2025
Exhibit H | Side-by-side comparison of VHG's registered marks and CVR's infringing marks, illustrating similarity in typeface, color palette, and overall commercial impression
Exhibit I | VHG cease-and-desist letter dated May 14, 2024 (from Sonia M. Trevino to CVR)
Exhibit J | CVR response letter dated June 7, 2024 (from Natasha K. Okonkwo, Alcántara Reeves LLP)
Exhibit K | Calderwood & Harkness LLP second cease-and-desist letter dated August 12, 2024 (from Marcus Delgado to Natasha K. Okonkwo)
Exhibit L | CVR response letter dated September 5, 2024 (from Natasha K. Okonkwo, Alcántara Reeves LLP)