Ledo Pizza has reached an undisclosed settlement in a trademark lawsuit against food delivery service Postmates.
Postmates allows consumers to use a website or mobile phone application to order products from local businesses and have them delivered. Postmates charges a fee for the delivery.
In a complaint filed in U.S. District Court in Baltimore last June, Ledo alleged Postmates used the Ledo trademark to advertise for delivery from a Washington, D.C.-area location.
Ledo is not affiliated with Postmates and has not authorized the company to deliver its pizza, according to the lawsuit. In fact, Ledo does not offer delivery because it has “not been able to ensure (its) quality standards will be met with a delivery service.”
Customers have assumed an affiliation between Ledo and Postmates, the lawsuit contends, and complain to Ledo about deliveries, which damages the pizza company’s reputation in the community.
The lawsuit sought an injunction prohibiting Postmates from advertising or otherwise using the Ledo mark as well as monetary damages.
The parties notified the court Monday that a settlement had been reached. Details of the settlement are not publicly available and attorneys for the parties did not respond to requests for comment Tuesday. Ledo Pizza does not appear on the Postmates website for Washington pizza delivery as of Tuesday afternoon.
Ledo is represented by Brent M. Ahalt and Matthew B. Barlow of McNamee, Hosea, Jernigan, Kim, Greenan & Lynch P.A. in Greenbelt. Postmates is represented by Brian P. Donnelly of Nixon Peabody LLP in Washington and Franklin M. Rubenstein of Wilson Sonsini Goodrich and Rosati in Washington.
The case is Ledo Pizza System Inc. et al. v. Postmates Inc., 1:18-cv-01792.
Ledo joined a growing list of restaurants that have sued for trademark infringement when a third-party delivery service uses its logo and menu.
California-based In-N-Out Burger sued DoorDash, a Postmates competitor, in 2015 for trademark infringement. The lawsuit was settled confidentially, according to news reports.