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SALT LAKE CITY — Sodalicious has filed a counterclaim against Swig in the ongoing legal battle between the two soda shops, contending Swig's initial lawsuit was filed in "bad faith" and demanding that its trademark of the term "dirty" be canceled, according to recently filed court documents.
The counterclaim, submitted in U.S. District Court on Aug. 12, alleges that Swig's trademark of the word "dirty" to describe sodas altered with sugary additions should be revoked. "Dirty" is a generic term used to describe altered drinks, Sodalicious claims.
Swig first sued Sodalicious in April 2015 over the "dirty" trademark, saying Sodalicious was illegally copying the term, as well as other aspects of Swig's business and marketing, such as the logo.
Swig attorneys also said in the initial lawsuit that Sodalicious' practices and designs represented "a near exact knockoff" of Swig. In May, Swig added Sodalicious' five co-owners as individual defendants in the case.
Sodalicious' counterclaim addresses those arguments by saying Swig is merely trying to use intimidation tactics to gain an advantage over competitors.
"Swig's actions are malicious in that Swig seeks to destroy a competitor through frivolous litigation and seeks to intimidate other small-business owners from expanding into the market share, seeks to discourage competition from businesses other than Sodalicious, and seeks to discourage new businesses from entering the marketplace," the counterclaim states.
Sodalicious is also seeking punitive damages against Swig for "harm and damages" suffered by the company as a result of the lawsuit, which it claims was made in "bad faith." Sodalicious is additionally seeking to be reimbursed for attorney's fees incurred in the case.
The counterclaim alleges Swig's trademarked term of "dirty" is used generically "across the country and internationally" to denote soda add-ins. The document claims Swig made multiple misrepresentations in its application to trademark the term.
The ongoing lawsuit is currently scheduled for a jury trial in August 2017.
