Klutch Sports Files Trademark Lawsuit Against Klutch Cannabis
Klutch Sports Group, the high-profile sports agency founded by Rich Paul, has filed a federal trademark infringement lawsuit against an Ohio-based cannabis company operating under the name ‘Klutch Cannabis.’
The complaint, filed March 16 in Ohio federal court, accuses the cannabis company of adopting a name, logo, and visual branding that are “nearly identical” to Klutch Sports’ trademarks.
The agency claims the similarities are not coincidental, but rather a deliberate attempt to capitalize on the recognition and goodwill Klutch Sports has built since its founding in 2012. Especially as Klutch Cannabis operates in Ohio, the same region where Klutch Sports was founded and where its brand remains closely associated.
Klutch Sports, which represents many of the world’s most prominent professional athletes, described itself in the filing as one of the most influential sports agencies globally, noting its inclusion on Time magazine’s list of the 100 most influential companies.
The lawsuit includes side-by-side comparisons of the companies’ logos and alleges that the cannabis brand incorporates similar stylistic elements, including a crown motif. The agency points out that one of its most well-known clients is LeBron James, often referred to as “King James.”
Klutch Sports argues that the overlap in branding, combined with broader market trends, creates a strong likelihood of consumer confusion. The company notes that professional athletes and sports figures have increasingly invested in or endorsed cannabis-related ventures, blurring the lines between sports and cannabis in the public eye.
The complaint further alleges that Klutch Cannabis markets and sells its products through channels that overlap with those used by Klutch Sports, targeting similar consumer audiences. As a result, Klutch Sports contends that consumers may reasonably believe the cannabis company is affiliated with, endorsed by, or connected to the agency.
Klutch Sports is seeking an injunction to prevent the cannabis company from continuing to use the “Klutch” name or related branding. It is also requesting that all infringing products be surrendered for destruction or donation, along with monetary damages, including profits earned by the cannabis company, attorneys’ fees, and treble damages.
Does Klutch Sports have a strong case?
I’ll say this plainly: this case should be a layup (pun intended).
Trademark infringement ultimately comes down to one question: whether consumers are likely to believe that two brands are connected.
And here, the answer is likely yes.
You’ve got the same name, not just phonetically similar, but spelled the same way with a “K.” You’ve got similar logos and visual branding. You’ve got geographic overlap in Ohio. And you’ve got a market reality where athletes and cannabis brands increasingly intersect.
That last point matters more than people realize. It’s no longer far-fetched for a consumer to assume a sports agency, especially one representing high-profile athletes, might have a stake in a cannabis brand.
The complaint even points to evidence of actual confusion in the marketplace. That’s the kind of fact that can make a judge or jury’s job very easy.
Example from the Lawsuit of Actual Consumer Confusion in the Marketplace
There’s also a broader pattern here. Cannabis companies, for whatever reason, have a habit of borrowing heavily from established brands. Sometimes they tweak the spelling or branding just enough to try to stay out of trouble, but it rarely works.
In 2021, candy maker Wm. Wrigley filed a series of lawsuits against multiple cannabis companies that were imitating the branding for its Skittles, Starbursts, and LifeSavers candies. Wrigley ultimately prevailed in these cases, forcing the cannabis companies to change their branding.
Ferrara Candy Company, the maker of Nerds, has faced similar issues. In one notable case, Ferrara sued Reroot Chicago LLC over product packaging that lifted its branding, and won.
In this case, the Klutch Cannabis trademark is too similar to the trademarks owned by Klutch Sports Group. If the company had used a “C” instead of a “K” and a different logo, this might be a closer case. Not a guaranteed win, but at least a fair fight. Instead, the combination of identical spelling, similar logos, and overlapping markets makes this case look more like a knockout on the first punch.
That all said, it is worth noting that Klutch Cannabis appears to have six locations in Ohio and has been operating since 2020. This means they will be able to raise a laches or estoppel defense. In other words, a judge or jury could find that Klutch Sports simply slept on their rights too long. Trademark law in the United States requires companies to actively monitor and police the marketplace. Failure to do so can result in a waiver of rights.
The bottom line: a laches or estoppel defense can be tricky in trademark matters. I ultimately expect Klutch Sports to prevail, either through a court ruling or a settlement that forces a rebrand.
Josh Gerben, Esq.
Josh Gerben, Esq. is a nationally recognized trademark attorney and the founder of Gerben IP. Since launching the firm in 2008, he has overseen the registration of over 10,000 trademarks and handled over 1,500 trademark disputes. Josh's practice focuses on building and defending global trademark portfolios for clients. These clients include entrepreneurs, private equity-backed businesses, athletes, celebrities, and public companies. Frequently quoted by major media outlets like CNBC, CNN, The New York Times, and The Wall Street Journal, Josh is widely regarded as a leading authority in trademark law.
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