Grupo Control sues night club for trademark infringement

BROWNSVILLE, Texas (ValleyCentral) — Grupo Control has filed a lawsuit against Centenario Night Club LLC. and others, according to documents obtained by ValleyCentral.

According to the lawsuit, Grupo Control is accusing Centenario Night Club LLC of trademark infringement, false designation, unfair competition under Texas common law, tortious interference, and defamation, following the unauthorized use of the registered trademarks "Grupo Control" and "Control" in connection with live musical performances and entertainment services.

The plaintiffs in this case are labeled in the lawsuit as Sergio Degollado and Geraldine Degollado doing business as Grupo Control. Throughout this article, the plaintiffs will be addressed as Grupo Control.

The defendants listed in the lawsuit are Jose Guadalupe Degollado, doing business as Control, Grupo Control, Lupe Degollado y Sus Reyes de Control, CTL and Control de Lupe Degollado; Jorge F. Ochoa Prado doing business as Ochoa Promotions; Juan Navarro doing business as J&J Promociones; Jose Martinez doing business as Hyphy Music Inc.; Saul Ramirez doing business as Racha Music Inc.; Guadalupe Chavez, Jesus Guerra, Centenario Night Club LLC and John Does 1-50.

In the lawsuit, Grupo Control claims that the defendants used the registered trademarks to advertise, promote, and perform musical services, confusing consumers, which harmed the band's business and reputation.

"Defendants have engaged in false advertising, defamatory statements, and tortious interference with Plaintiffs’ contractual relationships and business expectations that further damage Plaintiffs’ business interests," the lawsuit states.

The lawsuit states, the out-of-state nightclub has "purposefully" directed its activities in Texas and booked at least 27 performances in Texas using Grupo Control's marks between 2019 to 2024 in various venues in the state.

These performances are believed to generate over $500,000 in revenue.

According to the information gathered in the lawsuit, the defendants had regularly advertised their performances in Texas through various sources of media, including radio, social media, and print ads, which targeted Texas residents, particularly in the South Texas border.

According to the lawsuit, each venue had received a notice of infringing conduct, which includes the following:

• A formal cease and desist letter was sent on Dec. 20, 2019, March 13, 2023, April 10, 2023, and July 12, 2023; however, the lawsuit claims the nightclub continued hosting infringing performances.
• Received a written notice regarding the use of unauthorized HYPHY Music album release containing Grupo Control's copyrighted work.

Additionally, the nightclub was specifically informed of the following:

• Prior booking history with authentic Grupo Control from 2015 to 2018
• Prior booking history with authentic Grupo Control from 2015 to 2019
• Written cease and desist notice on April 10, 2023
• Direct communication with Grupo Control's booking agent in June 2023 and proceeded to host multiple infringing performances throughout 2023 to 2024

According to the lawsuit, the band owns the trademarks "Grupo Control" and Control" for entertainment services of live Tejano and Norteño musical performances, which have continuously been used and re-registered since 1999.

Grupo Control's representation is demanding a trial by jury and the following in restitution:

• Destroy all materials bearing the infringing marks
• Publish retractions of false and misleading statements about their relationship to Plaintiffs and Grupo Control
• Immediately surrender for impounding all physical and digital materials bearing the infringing marks
• Fund a corrective advertising campaign
• All profits received by Defendants from their infringing activities
• All damages sustained by Plaintiffs as a result of Defendants’ infringing activities
• The costs of corrective advertising necessary to address consumer confusion