A Legal Matter Developing Between Talon and Grandesign?
A Legal Matter Developing Between
Talon and Grandesign?
by Will Farmer
Media and Communications Manager
There is a case developing between Talon and Grandesign. Our Will Farmer, soon to be matriculated law student, examined the legal documents and filed this report.
The parties’ agreement called for a purchase price of $7,900,000 as well as an Earnout Payment, dependent on the gross profit generated by Grandesign in 2019. The Agreement prohibited Talon from using the Grandesign tradename without consent.
The Earnout Payment totaled $3,500,000. Talon paid an interim payment of $1,000,000 but nothing further. Grandesign filed a Complaint against both Talon US and Talon Outdoor (claiming each is the alter ego of the other) on April 15, 2020 in the Southern District of California.
Grandesign’s complaint contains various breach of contract claims and alleges Talon’s improper use of Grandesign’s tradename, causing confusion in the marketplace and forcing Grandesign to change its name to GDX Studios. Grandesign argues this is trademark infringement and a “Lannham Act violation” allowing them to take Talon US’s profits associated with Talon’s improper use of Grandesign’s name. An initial motion to dismiss filed by Talon to dismiss the trademark claims was denied by the U.S. District Court for the Southern District of California on March 1st, 2021.
Talon’s answer denies any wrongdoing and asserts counterclaims against both Grandesign and Aaron Gaeir, current CEO of GDX Studios, alleging breach of contract, fraud in the inducement of the purchase agreement, negligent misrepresentation, breach of Aaron Gaeir’s employment agreement, breach of fiduciary duty and intentional interference with contractual relations. Additionally, a second Motion to Dismiss for lack of jurisdiction was filed by Talon and remains pending.
We sent emails to both parties for comment. We did not hear back from Aaron Gaeir. A Talon North America spokesperson said the company doesn’t comment on pending legal matters.
We’ll keep monitoring for further developments.