Case 1:19-cv-01043-UNA Document 1 Filed 06/05/19 Page 1 of 17 PageID #: 1

UNITED STATES DISTRICT COURT

DISTRICT OF DELAWARE

OWNUM, LLC, an Ohio limited liability )

company, ) C.A. NO.
)
Plaintiff, )
)
vs. ) JURY TRIAL DEMANDED
)
OWNUM, INC., a Delaware corporation, )
)
Defendant. )

COMPLAINT

Plaintiff Ownum, LLC (“Ownum, LLC”), by and through undersigned counsel, brings

this action against Defendant Ownum, Inc. (“Defendant”) for its improper use of Ownum, LLC’s

trademarks and in support thereof avers as follows:

NATURE OF THE ACTION

1. This is a civil action arising under the laws of the United States and the laws of

the State of Ohio. Ownum, LLC seeks monetary damages and injunctive relief as provided in,

inter alia, 15 U.S.C. §§ 1116, 1117, and 1125 and Ohio Rev. Code Ann. § 4165.02 based upon

Defendant’s improper and impermissible use of Ownum, LLC’s trademarks as set forth herein.

THE PARTIES

2. Ownum, LLC is a limited liability company organized under the laws of the State

of Ohio, having a principal place of business at 13930 Brookpark Road, Cleveland, Ohio, 44135.

3. Upon information and belief, Defendant is a corporation organized under the laws

of the State of Delaware and may be served via its registered agent, The Incorporating Company,

LLC, at 42 Reads Way, New Castle, Delaware, 19720.

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JURISDICTION AND VENUE

4. This action arises, in part, under 15 U.S.C. § 1125.

5. This Court has subject matter jurisdiction over the claims set forth herein pursuant

to federal question jurisdiction as set forth in 28 U.S.C. § 1331(a) because various of the claims

set forth herein arise under 15 U.S.C. § 1125(a). The Court has jurisdiction over the remainder

of the claims set forth herein under the doctrine of ancillary jurisdiction.

6. This Court has personal jurisdiction over Defendant because Defendant is

incorporated under the laws of the State of Delaware.

7. Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391(b)-(c)

because Defendant is incorporated under the laws of the State of Delaware and therefore

“resides” in this judicial district.

FACTS

8. Ownum, LLC is a technology company in the business of developing software

products and services based on distributed ledger technologies, also known as blockchain

technologies. Ownum, LLC has and is developing products and services for managing motor

vehicle, boat, trailer, recreational vehicle, and personal watercraft titles, birth and death records

and other healthcare related records, license plates and related information, and transferrable tax

credits.

9. Ownum, LLC has been using the name “Ownum” and the “OWNUM” mark in

commerce since May 2018 and has invested heavily in publicizing both.

10. On May 11, 2018, Ownum, LLC, which had initially been named Champ Titles,

LLC, changed its company name to Ownum, LLC.

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11. In May 2018, Bernie Moreno, the Chairman of Ownum, LLC, updated his

Linkedin profile to describe “Ownum” as “a technology software incubator that develops game

changing, blockchain based businesses that helps government agencies achieve substantial

efficiencies and build revenue opportunities.” See https://www.linkedin.com/in/bernie-moreno-

4251884.

12. On May 29, 2018, Ownum, LLC filed to register “OWNUM” as a trademark with

the United States Patent and Trademark Office. On January 15, 2019, the USPTO issued a

Notice of Allowance for the OWNUM mark, thereby recognizing it as a distinctive mark. The

goods and services to which the mark will apply are described as:

Software as a service (SAAS) featuring software employing

blockchain technology with smart contracts to support business
and government operations, in the field of state motor vehicle,
boat, trailer, recreational vehicle, and personal watercraft titling;
Platform as a service (PAAS) featuring software employing
blockchain technology with smart contracts to support business
and government operations, in the field of state motor vehicle,
boat, trailer, recreational vehicle, and personal watercraft titling.

13. In July 2018, Bo Shim was hired as the Chief Technology Officer of Ownum,

LLC. Mr. Shim subsequently updated his Linkedin profile to indicate that “Ownum is a

blockchain technology company focused on unlocking business growth and making government

more efficient.” See https://www.linkedin.com/in/boshim.

14. On July 19, 2018, Mr. Moreno and Mr. Shim, among others, met with

representatives of the Ohio Bureau of Motor Vehicles to discuss Ownum, LLC’s planned

products and services. In that meeting, Ownum, LLC was described as a blockchain technology

company whose products and services would promote business growth and make government

more efficient.

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15. On July 24, 2018, Mr. Moreno travelled to Washington, D.C. to have multiple

meetings with various government officials on behalf of Ownum, LLC. Among others, Mr.

Moreno met with Congressman Warren Davidson; Darien Flowers, the Special Assistant to the

Undersecretary in the Department of Transportation; Al Patel in the Office of Management and

Budget; and Shane Tews with the American Enterprise Institute. In those meetings, Ownum,

LLC was described as a blockchain technology company whose products and services would

promote business growth and make government more efficient.

16. On August 2, 2018, Mr. Moreno met with representatives of Deloitte to discuss

Ownum, LLC. In that meeting, Ownum, LLC was described as a blockchain technology

company whose products and services would promote business growth and make government

more efficient.

17. On August 16, 2018, Destination Cleveland (the convention and visitor bureau for

the Greater Cleveland, Ohio area) issued a press release in which it identified Ownum, LLC as

one of the sponsors of the Blockland Solutions Conference to be held in Cleveland, Ohio in

December 2018. In this press release, Ownum, LLC was described as “a game changing,

blockchain based business that helps government agencies achieve substantial efficiencies and

build revenue opportunities.”

18. In a press release dated September 6, 2018, Destination Cleveland once again

identified Ownum, LLC as a sponsor of the Blockland Solutions Conference. The press release

contained a hyperlink to the Ownum, LLC webpage.

19. On October 8, 2018, Mr. Moreno made a presentation at the Greater Cleveland

Middle Market Forum, where he was introduced as the founder of “Ownum, an idea accelerator

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for other blockchain startups, such as a company to put car titles on the blockchain.” See

https://clevelandmagazine.com/in-the-cle/the-read/articles/chain-reaction.

20. On October 18, 2018, Mr. Moreno participated in a panel discussion at Cleveland

Marshall Law School where he was introduced as the “Chair of the innovative blockchain

business-based company, Ownum…” See

https://www.law.csuohio.edu/newsevents/events/2018101818005037.

21. From December 2 to December 4, 2018, Mr. Moreno participated in several

presentations and discussions with third parties at the Blockland Solutions Conference in

Cleveland, Ohio at which he was introduced as the founder of Ownum, LLC. In addition,

Ownum, LLC had a booth at the conference at which its products and services were discussed

publicly with individuals and companies from across the United States. The Blockland Solutions

Conference was attended by over 1,600 individuals from around the country, and included 151

speakers such as Mark Hurd, the CEO of Oracle; Jerry Cuomo, the Vice President of Blockchain

Technology for IBM; John Donovan, the CEO of AT&T Communications; Joseph Lubin, the co-

founder of Ethereum; Beth Mooney, the CEO of KeyCorp; and Larry Sanger, the co-founder of

Wikipedia.

22. On December 4, 2018, Shane Bigelow, Ownum, LLC’s CEO, participated in a

panel discussion at the Blockland Solutions Conference, at which he was introduced as the CEO

of Ownum, LLC and at which he discussed the types of blockchain solutions being developed at

Ownum, LLC to solve challenges facing the government sector at the county and state-level.

23. On January 22, 2019, Mr. Bigelow spoke at John Carroll University, where he

was introduced as the “CEO of Ownum, a company focused on making government and business

more efficient through blockchain.” See https://www.jcuea.org/EventApp.php.

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24. On March 6 and 7, 2019, the District of Columbia’s Chamber of Commerce

hosted its Fourth Annual Blockchain Conference at Georgetown University. Both Mr. Moreno

and Mr. Bigelow spoke at the conference. In fact, Mr. Bigelow participated in the keynote

presentation with Arun Ghosh, the US Blockchain leader for KPMG. The following is the

advertisement for their presentation:

See also https://www.youtube.com/watch?v=BFstTwTWeUw

25. The following is a screen shot from Mr. Moreno’s presentation in which the

OWNUM mark appears in two separate locations in front of the audience:

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See https://www.youtube.com/watch?v=V-

JFni0mqOY&list=PL1KsqBGyjG4hT9IJ2tyS3Z5ANBfBfi3-H&index=10.

26. On March 22, 2019, Mr. Moreno and Mr. Bigelow conducted a press conference

regarding Ownum, LLC’s products and services; the following is a screen shot of that press

conference prominently displaying the OWNUM mark:

27. In addition to the foregoing examples, Ownum, LLC’s name and the OWNUM

mark have received widespread publicity. See, e.g.:

https://www.ownum.io/
https://www.linkedin.com/company/ownum/
https://www.youtube.com/watch?v=fA9J-Nz4P_8
https://www.crainscleveland.com/technology/cleveland-blockchain-company-ownum-
hires-ohioturnpike-executive-director-randy-cole
https://www.clevescene.com/scene-and-heard/archives/2019/03/22/bernie-moreno-
launcheschamptitle-in-bid-to-disrupt-auto-titling
https://www.cleveland.com/news/2019/03/car-titles-on-blockchain-bernie-morenos-
ownumlaunches-product-that-claims-to-make-it-happen.html

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https://www.govtech.com/biz/Startup-Ownums-First-Product-is-Blockchain-Vehicle-
Titles.html
https://www.zoominfo.com/c/ownum-llc/457992298
https://twitter.com/berniemoreno/status/1083177175304544258?lang=en
https://www.coverager.com/company/ownum/
https://matr.net/news/startup-ownums-first-product-is-blockchain-vehicle-titles/
https://www.globenewswire.com/news-release/2019/03/06/1749001/0/en/Chamber-of-
Digital-Welcomes-Don-Wilson-to-Its-Advisory-Board-Seven-New-Executive-
Committee-Members.html
https://www.blocklandcleveland.com/solutions/speakers/
https://www.ideastream.org/programs/sound-of-ideas/summit-preview-blockchain-
echnologyfront-international-triennial-for-contemporary-art
https://hedgemaven.maven-data.com/news/crypto/car-titles-on-blockchain-bernie-
morenosownum-launches-product-that-claims-to-make-it-happen-clevelandcom
https://newstral.com/en/article/en/1122379321/car-titles-on-blockchain-bernie-moreno-s-
ownumlaunches-product-that-claims-to-make-it-happen
28. From July 19, 2018 through the present, Ownum, LLC engaged in numerous

discussions with governmental and non-governmental entities with respect to the implementation

and deployment of its products and services including, without, limitation, required data

mapping activities necessary for the implementation and deployment of its products and services.

29. As a result of Ownum, LLC’s investment in publicizing its name and its goods

and services and the widespread publicity Ownum, LLC has received, the relevant public has

come to associate the Ownum name and the OWNUM mark with Ownum, LLC as being the

source or origin of its products and services.

30. Ownum, LLC currently has four operating units: CHAMPtitles, Vital Chain,

DigiCredits and Tech Tags, each of which has adopted a unique mark to identify it and the goods

and services that it has or intends to offer. Those marks are as follows:

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31. The foregoing marks are prominently displayed on Ownum, LLC’s website, at

https://www.ownum.io/. Ownum, LLC has also prominently featured those marks in its

promotional efforts as shown above in the screen shot from the March 22, 2019 press

conference. As another example, the following is a screen shot from Mr. Moreno’s presentation

at the 2019 Blockchain Summit in Washington, D.C.

See https://www.youtube.com/watch?v=V-JFni0mqOY.

32. CHAMPtitles also has its own website that is linked to Ownum, LLC’s website.

See https://www.champtitles.com/.

33. As a result of Ownum LLC’’s efforts to publicize the products and services of its

operating units, the consuming public has come to associate the marks of each of these operating

units with both the operating units and Ownum, LLC.

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34. Defendant is a Delaware corporation that was formed on March 7, 2019.

Defendant operates a website using the domain name “ownum.com.” According to this website,

Defendant sells products and utilizes software to manage medications.

35. Defendant has recently begun to display the following mark on its website:

36. A comparison of Defendant’s mark to the CHAMPtitles mark reveals a striking

similarity in design:

37. Defendant’s use of the “ownum.com” domain has and is likely to continue to

cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association

of Defendant with Ownum, LLC.

38. Defendant’s adoption of a mark that has significant design similarities to the

CHAMPtitles mark is likely to cause confusion, or to cause mistake, or to deceive as to the

affiliation, connection, or association of Defendant with Ownum, LLC.

39. Defendant’s use of the “ownum.com” domain has and is likely to continue to

cause confusion, or to cause mistake, or to deceive as to the source of Defendant’s goods,

services, or commercial activities as Ownum, LLC, or as to the sponsorship, or approval of

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Defendant’s goods, services, or commercial activities by Ownum, LLC. For example, in a recent

discussion with a prospective business partner, the prospective business partner inquired about

the goods and services it had seen on Defendant’s website because the prospective business

partner had mistakenly assumed that the ownum.com domain was affiliated with Ownum, LLC.

40. Defendant’s adoption of a mark that has significant design similarities to the

CHAMPtitles mark is likely to cause confusion, or to cause mistake, or to deceive as to the

source of Defendant’s goods, services, or commercial activities as Ownum, LLC, or as to the

sponsorship, or approval of Defendant’s goods, services, or commercial activities by Ownum,

LLC.

41. Ownum, LLC believes that it has been and is likely to continue to be damaged by

Defendant’s conduct.

42. In April 2019, Ownum, LLC contacted Defendant in an effort to amicably resolve

the confusion caused by Defendant’s use of the ownum.com domain and to put Defendant on

notice of Ownum, LLC’s rights in and to the Ownum name. Ownum, LLC received no reply to

that communication.

43. In early May, 2019, Ownum, LLC again contacted Defendant in an attempt to

amicably resolve the potential confusion caused by Defendant’s use of the ownum.com domain.

Defendant responded by demanding that Ownum, LLC pay it $1,000,000.00 for the ownum.com

domain. Despite repeated attempts by Ownum, LLC to resolve the matter amicably, Defendant

refused to engage in any meaningful discussions and continued to insist that it be paid

$1,000,000.00 for the ownum.com domain.

44. Defendant’s use of the “ownum.com” domain and its adoption of a mark that has

significant design similarities to the CHAMPtitles mark is a violation of 15 U.S.C. §1125(a).

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45. Pursuant to 15 U.S.C. §§1116 and 1117 Ownum, LLC is entitled to injunctive

relief, Defendant’s profits, any damages sustained by Ownum, LLC and the costs of this action.

46. Because Defendant has continued to use the ownum.com domain despite being

put on notice of Ownum, LLC’s rights, and because Defendant adopted a mark that is intended to

mimic the marks utilized by Ownum, LLC and its subsidiaries, this is an exceptional case

entitling Ownum, LLC to recover its legal fees pursuant to 15 U.S.C §1117.

COUNT I
(VIOLATION OF 15 U.S.C. § 1125(d))

47. Ownum, LLC incorporates by reference paragraphs 1 through 46 of this

Complaint.

48. The following graph shows that the .com Top Level Domain is used by almost

half of all websites in the world (as of November 2018, 46.9 percent of all global websites used a

.com top-level domain):

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49. Members of the relevant public who become familiar with Ownum, LLC, will

likely first visit the ownum.com domain in an attempt to learn more information about Ownum,

LLC. Upon visiting that site, they will be presented with products and related software that are

being marketed by Defendant to assist patients to manage their medications. Members of the

relevant public have been and will likely be misled into believing that Ownum, LLC has

expanded its products and services to also sell products and use software to assist patients to

manage their medications.

50. Ownum, LLC’s OWNUM mark is distinctive.

51. Defendant’s “ownum.com” domain is confusingly similar to the OWNUM mark.

52. Defendant did not exist until March 2019, so Defendant has no trademark or

intellectual property rights arising from any use of the name “ownum” prior to March 2019.

53. Defendant did not exist until March 2019, so prior to March 2019, Defendant had

not used “Ownum” as its legal name and the “ownum” mark was not otherwise commonly used

to identify Defendant or any entity other than Ownum, LLC.

54. Defendant did not exist until March 2019, so prior to March 2019, Defendant had

not used the “ownum” mark in connection with the bona fide offering of any goods or services.

55. Defendant’s use of the “ownum.com” domain is for commercial purposes and is

not a fair use of Ownum, LLC’s OWNUM mark.

56. As evidenced by Defendant’s demand for $1,000,000.00 to sell the ownum.com

domain to Ownum, LLC, Defendant is aware of Ownum, LLC’s rights in and to the OWNUM

mark and that members of the relevant public are likely to visit the ownum.com domain in their

efforts to learn more about Ownum, LLC. Defendant is relying on that likelihood in an effort to

profit from its use of the domain.

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57. As evidenced by Defendant’s demand for $1,000,000.00 to sell the ownum.com

domain to Ownum, LLC, Defendant acquired the ownum.com domain name with the bad faith

intent to profit from it.

58. As a result of the foregoing conduct, Defendant has violated the

Anticybersquatting Consumer Protection Act, 15 U.S.C. § 1125(d) and, consequently, Ownum,

LLC has been damaged in an amount to be determined at trial.

COUNT II
(VIOLATION OF OHIO REV. CODE ANN. § 4165.02)

59. Ownum, LLC incorporates by reference paragraphs 1 through 58 of this

Complaint.

60. Defendant’s use of the “ownum.com” domain and its adoption of a mark that has

significant design similarities to the CHAMPtitles mark is a violation of of the Ohio Deceptive

Trade Practices Act, Ohio Rev. Code Ann. §4165.02.

61. Ownum, LLC has been damaged as a result of Defendant’s violation of the Ohio

Deceptive Trade Pracices Act. Under the Ohio Deceptive Trade Practis Act, Ownum, LLC is

entitled to injucntive relief, actual damages and atorneys’ fees in an amount to be determined at

trial.

COUNT III
(VIOLATION OF COMMON LAW TRADEMARK RIGHTS)

62. Ownum, LLC incorporates by reference paragraphs 1 through 61 of this

Complaint.

63. Ownum, LLC has common law trademark rights in the OWNUM mark.

64. Defendant’s use of the “ownum.com” domain is likely to cause confusion as to

the source or origin of its goods and services.

65. Defendant has infringed Ownum, LLC’s common law trademark rights.

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66. Ownum, LLC has been damaged and will be irreparably damaged if Defendant’s

infringement is not stopped.

67. Ownum, LLC is entitled to inunctive relief to prevent further infringement and its

actual damages, including any of Defendant’s profits, in an amount to be determined at trial.

COUNT IV
(VIOLATION OF OHIO TRADEMARK LAW)

68. Ownum, LLC incorporates by reference paragraphs 1 through 67 of this

Complaint.

69. As an alternative to Ownum, LLC’s claims based on confusion as to source or

origin, or confusion of sponsorship, or reverse confusion of sponsorship, this claim is based on

Defendant’s dilution of Ownum, LLC’s trademark rights under Ohio law.

70. Ownum, LLC has a valuable property interest in the OWNUM mark and the

Ownum name.

71. Ownum, LLC’s OWNUM mark is distinctive, both on a national level and in

those geographic markets in which Ownum, LLC has advertised its goods and services,

including, without limitation, Ohio and Washington, D.C.

72. Defendant’s use of the ownum.com domain and the “OWNUM” mark is likely to

cause a gradual diminution in the distinctiveness of Ownum, LLC’s OWNUM mark and thus

dilute its value. Defendant’s conduct is likely to erode Ownum, LLC’s interest in the OWNUM

mark by blurring its product identification or by damaging positive associations that have

attached to it.

73. Ownum, LLC has been and will be damaged as a result of Defendant’s conduct in

an amount to be determined at trial.

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PRAYER FOR RELIEF

WHEREFORE, Ownum, LLC prays for relief as follows:

A. For a preliminary and permanent injunction preventing Defendant from continued

use of the ownum.com domain and from any use of the word “ownum” that is likely to cause

confusion as to the source or origin of goods or services, or any affiliation between Ownum,

LLC and Defendant;

B. For a permanent injunction requiring Defendant to transfer the ownum.com

domain to Ownum, LLC;

C. For an award of all profits earned by Defendant as a result of its use of the

ownum.com domain;

D. For an award of Ownum, LLC’s actual damages arising from Defendant’s use of

the ownum.com domain;

E. For an award to Ownum, LLC of its legal fees and other litigation costs incurred

in connection with this litigation;

F. For such other and further relief as this Court deems just.

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JURY DEMAND

In accordance with Rule 38 of the Federal Rules of Civil Procedure and Local Rule 38.1,

Ownum, LLC respectfully demands a jury trial on all issues triable to a jury in this action.

BENESCH, FRIEDLANDER, COPLAN &

ARONOFF LLP

Dated: June 5, 2019 /s/ Jennifer R. Hoover

JENNIFER R. HOOVER (DE No. 5111)
KATE HARMON (DE No. 5343)
222 Delaware Avenue, Suite 801
Wilmington, Delaware 19801-1611
Telephone: 302.442.7010
Facsimile: 302.442.7012
Email: jhoover@beneschlaw.com
kharmon@beneschlaw.com

Attorneys for Plaintiff Ownum, LLC

FRANTZ WARD LLP

James Niehaus
200 Public Square, Suite 3000
Cleveland, Ohio 44114
Telephone: 216.515.1611
Email: jniehaus@frantzward.com
Pro Hac Vice Admission Pending

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