TurnKey Internet Sued By HITRUST

Latham, New York datacenter and web host TurnKey Internet sued by the HITRUST Alliance for lying to and misleading consumers by falsely claiming to be certified, abuse of their trademark and dilution of their brand.

Public Docket:
https://iapps.courts.state.ny.us/nyscef/DocumentList?docketId=n4n/0g/qunk72H06by4beA==&display=all

NATURE OF ACTION: This action seeks recovery for (i) Defendant TurnKey
Internet, Inc. (“TurnKey”)’s unauthorized use, infringement and dilution of Plaintiff
HITRUST Services Corp. (“HITRUST”)’s registered trademarks HITRUST®, U.S. Reg.
No. 5320843, and HITRUST CSF®, U.S. Reg. No. 5320844, and certification mark
HITRUST CSF Certified™ in violation of the federal Lanham Act, 15 U.S.C.A. §§ 1114
and 1125, and N.Y. G.B.L. § 360-l;
(ii) TurnKey’s violation of 15 U.S.C.A. § 1125 and
N.Y. G.B.L. §§ 349 and 350 by engaging in deceptive trade practices and false
advertising to the public at large on its website, online advertisements in listing services
and print advertisements distributed to potential customers that Turnkey was “HITRUST
CERTIFIED” (as an example, see Attachment A) when it was not so certified and
misrepresenting in press releases that its data center was complaint with “HITRUST CSF
certification”;
(iii) TurnKey’s unfair competition with authorized users of the certification
mark HITRUST CSF Certified™ by holding itself out as having attained certification
when it was not so certified;
(iii) breach of an agreement with HITRUST to cease use of
the HITRUST’s marks (the “Agreement”); and
(iv) breach of the implied covenant of
good and fair dealing in the Agreement by continuing the use of the HITRUST’s marks
in flagrant violation of the Agreement. TurnKey continued its use of HITRUST’s marks
after receiving successive cease and desist letters and after the Agreement, and, thereby,
its wrongful conduct was willful and knowing warranting treble damages and such
exceptional circumstances warrant the award of attorneys’ fees. TurnKey offers its
services to customers in the New York City region as specifically stated on its website.

HITRUST has been irreparably harmed by TurnKey’s wrongful conduct in
infringing HITRUST’s marks and holding itself out as “HITRUST CERTIFIED” when it
was not. TurnKey’s wrongful conduct also was directed to the public at large by soliciting
new customers for its business via false advertising on its website and in online and print
advertisements. Injunctive relief is necessary because there is no remedy at law.

RELIEF SOUGHT: Plaintiff seeks permanent injunctive relief, monetary
damages in the amount of at least $50,000.00, as well as all other available remedies,
including attorneys’ fees and treble damages arising from TurnKey’s willful and knowing
violations, court costs and/or and any other relief that this Court finds to be just.

Should Defendant fail to appear herein, judgment will be entered by default, and
such judgment shall (i) issue a permanent injunction prohibiting TurnKey’s use of the
mark HITRUST®, HITRUST CSF® and certification mark HITRUST CSF Certified™;
(ii) grant monetary damages in the sum of $50,000.00; (iii) grant treble damages in the
amount of $150,000.00; (iv) award to HITRUST as the prevailing party attorneys’ fees in
an amount to be determined by this Court as provided by U.S.C.A. § 1114 (a) and N.Y.
G.B.L. § 349; (v) award statutory interest from October 15, 2018, the date of the first
cease and desist letter; and (vi) grant court costs.