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Sprint Seeking $2 Million per Violation in Trademark Lawsuit

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Sprint acquired Nextel Communications more than ten years ago

Sprint (S) is suing two Florida companies for alleged trademark infringement, according to a Kansas City Business Journal report. Sprint filed lawsuits against Nextel Inc. and Retrobrands USA, accusing the companies of using the Nextel brand without its permission.

Sprint acquired Nextel Communications in 2005. It’s claiming the rights to the Nextel trademark, which features black capital letters against a yellow background. Sprint, which is reportedly exploring a merger with rival T-Mobile (TMUS), is majority owned by SoftBank (SFTBF), a Japanese conglomerate with interests in telecom and technology.

The chart above shows the trendline of Sprint’s quarterly operating expenses.

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Sprint spent over $2 billion on marketing and other activities

In the trademark lawsuit, Sprint is seeking $2.0 million in damages for every violation. Sprint invested more than $2.1 billion in marketing and administrative work in its fiscal 3Q17 (calendar 4Q17). Sprint’s overall operating expenses exceeded $7.5 billion in fiscal 3Q17. Its revenues reached ~$8.2 billion in the quarter.

At Alibaba (BABA), the Chinese commerce giant that recently sued a Dubai firm over its Alibabacoin trademark, spent $1.3 billion in marketing activities in 4Q17, representing an increase of more than 100% YoY (year-over-year). Marketing expenses increased 35.0% and 36.0% YoY for Alibaba rivals JD.com (JD) and Amazon (AMZN), respectively, in a similar period.

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