Twin Brothers in Legal Battle Over Texas Self-Storage Brands

Twin brothers David and Michael Postar are in a legal battle over their competing Texas self-storage brands, Affordable Storage and A-Plus Storage. The lawsuit, originally filed by Michael Postar, has reached the U.S. District Court for the Northern District of Texas. He alleges trademark infringement, breach of fiduciary duty and violations of a mediated settlement agreement. David Postar has counter-filed a forceful defense, according to the source.

The brothers owned a chain of self-storage facilities together in West Texas. They split the business in 2017, dividing their assets and trademarks under a Rule 11 Mediated Settlement Agreement (MSA).

The dispute centers on the use of “Smiley Guy,” a smiley face with arms and legs that sometimes wears a crown, which is used alongside the Affordable Storage logo. In the MSA, Michael was granted exclusive rights to use the trademarks in Lubbock County. David secured the right to use them in Midland and Tom Green County in which he operates three facilities.

Michael Postar alleges that unauthorized derivations of the Smiley Guy are being used in signage at facilities and on company vehicles in Lubbock County, a violation of the MSA, the Postar IP LLC Co. agreement and a series of arbitration awards. The action has caused confusion for customers and diluted the value of the trademarks, the lawsuit claims. In his defense, David Postar argues that his brother’s claims are excluded due to the passage of time and prior knowledge and consent from Michael Postar regarding the use of the trademarks.

Michael Postar is seeking damages, a permanent injunction against David Postar’s use of the Smiley Guy logo in Lubbock County, and a declaratory judgment affirming his exclusive rights to use it in the county. Michael Postar is also accusing his brother of breaching fiduciary duties owed to Postar IP, which holds the registered marks. David Postar is a partner of the company.

David Postar is asking the court to dismiss the case, claiming the dispute has been resolved through prior arbitration. He also contends the court lacks jurisdiction due to an ongoing arbitration initiated by his brother. He contends his use of the trademarks was lawful and consistent with previous arbitration rulings that allow for intermittent use under specific conditions, the source reported.

David Postar also claims that his brother has initiated aggressive business tactics by developing new sites near David Postar’s existing ones. David Postar also operates Discount Storage in Lubbock, which sports a “Box Smiley” brand logo that’s similar to “Smiley Guy.” Rather than a circle, the body of the character is a box.

Affordable Storage operates three facilities in Hutto, Texas, and 17 in Lubbock. A-Plus Storage has seven locations in Lubbock. Discount operates three facilities in Lubbock and one in Wolfforth, Texas.

Source: Sanangelo Live, Twin Brothers at War Over Popular Self-Storage Brand