In federal suit, Dallas startup 5miles accuses eBay of trademark violation

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Feb 26, 2016, 07:36 ET

DALLAS, Feb. 26, 2016 /PRNewswire/ -- 5miles, one of the country's most popular and fastest-growing marketplace apps, has sued an eBay company, saying its strikingly similar name and logo have caused widespread consumer confusion.

The suit, which the parent company of the Dallas-based startup filed Thursday in U.S. District Court in Dallas, says that eBay-owned Close5 has infringed on 5miles' trademark and should be barred from using that name and logo.

EBay's Close5 provides similar online shopping services and its "unauthorized use" of 5miles' trademark has damaged the "significant investment of time and resources" that 5miles used to create its brand and the "goodwill that now surrounds it," the suit says.

The legal dispute between the two tech companies is the latest in a number of court cases related to the increasingly crowded and competitive ecommerce business, especially among mobile-first, classified listings apps.

The U.S. Patent and Trademark Office granted 5miles' parent company the trademark registration on Tuesday, clearing the way for the federal suit against eBay and two of its affiliates.

5miles, which launched in mid-2014 and entered the Dallas market in January 2015, allows users to buy and sell goods and services on their phones, with a seamless, easy-to-use mobile interface, safer identity verification capabilities and hyper-local curation of offerings, as the company says in its slogan, "all within 5 miles."

The suit says 5miles' parent company filed an intent-to-use trademark application for 5miles with the U.S. Patent and Trademark Office in May 2014, the same month it registered the domain name, 5milesapp.com. EBay did not file an intent-to-use trademark application for Close5 until September 2014, months later. The 5miles app first was made available in August 2014.

"EBay has infringed on our trademarks with their continued use of the Close5 name, app icon and its 'Everything within 5 miles' tagline, and we intend to vigorously enforce our rights," said Rick Cantu, 5miles' general manager. "EBay's use of Close5 has caused repeated instances of confusion in our marketplace. Our hope is that, as we continue expanding our presence in markets across the U.S., this action will protect not only the significant startup investment in our 5miles brand, but also members of the public who want the advantages of our 5miles app."

The 5miles' logo features a stylized numeral 5, in white, on an orange background; the Close5 logo also uses numeral 5, in white, on a red background.

The lawsuit seeks a court order that prohibits eBay from using "any mark that is the same as or confusingly similar to the 5miles" name, logo and slogan.

About 5miles

With more than 5 million registered users total, and upwards of 500,000 just in the Dallas-Fort Worth area, the 5miles company is revolutionizing the hyperlocal, mobile marketplace. The app has facilitated $1 billion in local transactions in its first year. It also is the first app of its kind to include services, housing and jobs, in addition to second-hand trading. Putting a premium on safety and security, 5miles does not permit personal information on an item description, offering instead a proprietary messaging system that keeps contact information private. For more information, visit 5milesapp.com.