Antimicrobial wiping table surface

Legal battle alert Oura Inc vs Oura Health who will keep the name

By James Wan

What you need to know (in a nutshell)

  1. Oura Inc., a company offering antimicrobial products, is engaged in a legal battle with Finnish startup Oura Health, valued at $2.5 billion and known for its fitness-tracking Oura Ring, over trademark claims.
  2. Oura Health filed to cancel Oura Inc.’s US trademark, arguing it would dilute its brand presence and confuse consumers. If successful, Oura Inc. would have to change its namesake branding or face significant consequences.
  3. Legal battles like this are common in the industry, often involving larger companies expanding their portfolios and inadvertently conflicting with smaller entities. The costs of such legal proceedings can be financially burdensome for smaller startups.

Full Article

Legal disputes over trademark claims frequently pit large businesses against smaller ones, often resulting in costly proceedings and necessitating alterations to a company’s name and marketing approach. Oura Inc., a company offering antimicrobial products such as hats, towels, and aprons, finds itself in such a struggle against Finnish startup Oura Health. The latter, valued at a remarkable $2.5 billion, owes its success to the widely popular fitness-tracking Oura Ring, donned by celebrities and Olympic athletes.

In March last year, Oura Health sought to cancel Oura Inc.’s US trademark, contending that it would dilute its brand presence and bewilder consumers. If Oura Health emerges victorious, Oura Inc. may be forced to change its namesake branding or face severe repercussions, a prospect that the company deems unacceptable. Keane Veran, Oura Inc.’s founder, stated, “They essentially demanded we give up our name & trademarks for them.”

Michael Cohen from IP Law Group notes that such scenarios are prevalent in various industries when larger corporations, in their quest to expand into more locations or product categories, inadvertently clash with smaller entities occupying those spaces. This is often due to ignorance rather than malicious intent. However, it can still harm pre-existing operations, particularly for smaller startups that may need to be equipped to handle the financial burden and lengthy processes involved. In response, these startups may need to change their names or risk jeopardising their entire operation due to their inability to endure long-term cost pressures.

Although there is potential for counterclaims based on the merits of the arguments presented, the likelihood of success is slim given the vast resources available to corporate giants compared to micro businesses. As a result, those with ample financial reserves often prevail in the end. Keane Veran currently faces this dilemma, reporting that his company has already incurred significant expenses (over $60,000) while fighting back, with the potential for this figure to approach a quarter of a million dollars shortly. Despite the mounting challenges, Veran remains determined to fight for his company, its customers, employees, and the broader community.

The case is now in the discovery phase, where both parties must provide supporting evidence, testimonies, and documentation before proceeding to the pre-trial stage later this year. Following this, a full trial will occur, and much hangs in the balance as the outcome remains uncertain: will Goliath triumph over David? Only time will tell.