James Packer's Crown Resorts versus Iwan Sunito's Crown Group in billion dollar trademark battle, by Jessica Gardner - 9th February 2015

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James Packer's Crown Resorts has claimed that Mr Sunito's Crown Group and its subsidiaries have breached a number of its trademarks including its logos and suite of brand names. Photo: Reuters

James Packer's Crown Resorts is seeking a legal order to stop property developer Iwan Sunito from trading under the name Crown Group Holdings, claiming the apartment developer is cashing in on the $10 billion casino operator's brand.

In a court case that is sure to provide some moments of confusion, Mr Packer's Crown Resorts has claimed that Mr Sunito's Crown Group and its subsidiaries have breached a number of its trademarks including its logos and suite of brand names.

Documents filed in the Federal Court of Australia by Crown Resorts allege that the property developer is misleading consumers by making them think its luxury apartments are associated with the casino company and its hospitality brand.

It might seem like a straightforward intellectual property stoush at first glance, but it is set to be a battle for the Sydney skyline in which only one Crown will get to be king. The case has ramifications for billions of dollars worth of projects by both companies.

Mr Sunito's Crown Group, which he founded 17 years ago in partnership with Paul Sathio, who is also named in the action, has $3.5 billion worth of residential developments in its Australian project pipeline. The projects are mostly in Sydney and target affluent Chinese property buyers looking for investment properties.

Mr Packer is also making his first foray into apartment development, in a $2 billion hotel and casino planned for the waterfront Barangaroo development precinct.

The billionaire told Fairfax Media last week his proposed 275-metre skyscraper will have 80 apartments. Strong sales of these luxury residences, which will no doubt also target the Chinese market too, are needed by Crown to bring down the net cost of the development and give the company a better chance of delivering a return on the ambitious project.

A Crown Resorts spokesman said the company had asked the court to restrain Crown Group from infringing its trademarks, and was also seeking damages.

"Crown Resorts has been left with no choice but to take this action to protect its hard-won reputation," he said.

"Crown Resorts has become increasingly concerned that Crown International Group is taking advantage of Crown Resorts' brands and reputation in its offerings of residential apartments, serviced apartments, hotel rooms and retail shopping."

A spokeswoman for Crown Group declined to comment, other than to confirm the company's lawyers were looking into the matter.

In its statement of claim Crown Resorts, and its subsidiary Crown Melbourne, outline 16 different trademarks that Crown Group has allegedly infringed. These include Crown Apartments, Crown Towers and Crown Resort. It also outlines three pending trademarks it alleges the property developer is also infringing.

"Each of the Respondents' Marks is substantially identical with, or deceptively similar to, one or more of the Crown trademarks," Crown Resorts said in its claim.

Although it is not referred to in the documents, the pending trademarks applications lodged by Crown Resorts were opposed in December by Crown Group. These were Crown Resorts, Crown Sydney and the Crown Resorts logo – a black square with a gold illustrated crown.

At the same time Crown Group lodged 10 new trademarks applications including its own black and gold logos and the brands Crown Group, Crown Residences and Sydney By Crown. The latter refers to the property developer's luxury inner-city skyscraper on Clarence Street. The property is still under development but in one day last November 95 per cent of its apartments were sold off the plan, including all four penthouses, for about $170 million.

Last week Mr Packer revealed that Crown Sydney is running behind schedule and the casino is unlikely to be ready in time to begin operating by November 2019, which is when rival Echo Entertainment Group's period of exclusivity over its licence to run flagship casino The Star ends.
In addition to its apartments the development will also have 350 rooms in its six-star hotel, which Mr Packer last week said represented about $4.5 million per 'key'.

"There's nothing more important for me than Sydney," he said.

Mr Sunito was born on the Indonesian side of the island Borneo and moved to Australia as a teenager. After originally working as an architect, he established Crown Group with Mr Sathio.
Mr Sunito is the pastor of the Sydney Christian Worship Centre, an affiliation that upset some buyers of apartments in the Crown Viking development at Green Square.

In 2013 after a number of investors had bought apartments off the plan, the development application was altered so a ground floor space originally slated for retail was modified to house a "place of worship". The City of Sydney rejected the change, after considering complaints from buyers and others in the community.

The court action will be presented to Justice John Griffiths in a first directions hearing in February.

(The Sydney Morning Herald)