Legal Dispute Over Olympic Trademarks: Prime Hydration vs. the USOC

The United States Olympic and Paralympic Committee (USOC) has granted the beverage company Coca-Cola the exclusive rights to use Olympic brands, including the terms 'Olympic' and 'Team USA,' for beverages in the United States. However, shortly before the start of the 2024 Olympic Games, the committee has accused Prime Hydration, founded by YouTube stars Logan Paul and KSI, of unauthorized use of these protected terms to promote a sports drink. On Friday, the USOC filed a lawsuit in the district court of the state of Colorado, where the committee is headquartered, accusing Prime Hydration of 'willful' and 'flagrant' trademark infringement. The lawsuit aims to claim all profits that Prime derived from the affected products, as well as seek damages amounting to millions, to be determined in court. The focus of the lawsuit is a Prime Hydration drink featuring Kevin Durant, the star forward of the Phoenix Suns, as the promotional face. Durant is aiming for his fourth gold medal in basketball at this summer’s Olympic Games. According to the lawsuit, packaging, online ads, and promotions for the Durant drink use terms such as Olympic, Olympian, Team USA, and Going for Gold, all of which are protected trademarks of the USOC. An attorney for the Olympic committee alerted Prime Hydration on July 10 to cease using these trademarks, but the company continued to market the drink and promote it on LinkedIn despite this warning, the lawsuit claims. Prime Hydration has not yet commented on the allegations. The committee emphasizes that Coca-Cola has made a 'significant financial contribution' for the exclusive rights and that the value of this sponsorship deal, which helps fund the U.S. Olympic team, is threatened by the unlawful use of the trademarks by other companies. Prime Hydration was founded in 2022 by Logan Paul, a YouTube influencer who has also ventured into boxing and wrestling, and by KSI (Olajide Olayinka Williams Olatunji), another YouTube star, both of whom gained additional fame through their boxing matches against each other. Last year, Prime was criticized by doctors and lawmakers for the high caffeine content in its Prime Energy drink, which could be harmful to children. Senator Chuck Schumer of New York, the Senate Majority Leader, urged the Food and Drug Administration (F.D.A) to investigate the high-caffeine version of Prime, stating that it contained as much caffeine as six 12-ounce cans of cola. Prime clarified that every can of its energy drink indicates that the beverage is not intended for individuals under 18 years old. Furthermore, the company emphasized that its caffeine levels are comparable to those of other leading energy drinks and compliant with F.D.A. regulations.