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Richmond, VA--Capri Jewelers has won an injunction against Diamonds Direct USA, a Charlotte, NC-based jeweler owned by an Israeli consortium. Diamonds Direct had planned to open a store in Richmond’s popular Short Pump area, under the name “Diamonds Direct,” but Capri Jewelers, which used the theme in its advertising, learned of the plans and registered it as a Virginia service mark.

Diamonds Direct answered with a lawsuit claiming it, not Capri, had the superior right to use the name in advertising. Capri answered with a counter-suit showing evidence that Diamonds Direct did not have the right to use the name in Virginia. Indeed, court documents obtained by The Centurion confirm that Diamonds Direct advertising clearly targeted consumers in Charlotte and Raleigh, NC, and Birmingham, AL, but not in Virigina, and that a review of its customer database revealed only about 1% of its customers claim a Virginia address. The firm's website also shows Austin, TX as a location.

Capri Jewelers has been using the term "Diamonds Direct" in its marketing, as seen on its website here. The store filed its application to register the mark on January 19, 2012. But it was granted a certificate of registration on January 26, with a claimed "first use" of the trademark on January 14, 2012. A temporary court injunction in September maintains that the store has the right to the name, but suggests the ruling will be final in the October 30 trial.

At a hearing on September 19, the court awarded an injunction to Capri Jewelers and against Diamonds Direct. The effect of the injunction is that the Charlotte company cannot use the term “Diamonds Direct” in connection with any Virginia operation. Although the injunction is temporary and will last only until a scheduled October 30 trial, the court held that the chances that Diamonds Direct could win at trial are “remote.”  

Separately, Capri Jewelers also hit Diamonds Direct and its president, Itay Berger, with a $6.6 million cyber-piracy suit on September 21, alleging the company bought up domain names that include the name “Capri” as part of a scheme to divert searchers away from Capri and to sites controlled by Diamonds Direct. A ruling has not been reached.