Idaho CU Asks Judge to End Trademark Lawsuit From Kansas Bank

A Meridian, Idaho-based credit union is asking a judge to end a dispute with a Kansas-based bank over the credit union’s use of the term “CapEd,” according to a complaint filed last week in an Idaho District Court.

According to the document, Capital Educators Federal Credit Union wants the court to declare that the credit union, which generally serves members in Idaho, is not infringing on a trademark held by Capitol Federal Savings Bank, which operates 54 branches in Kansas and Missouri. The bank has trademarked “CAPFED” and has demanded that the credit union stop using “CapEd,” according to the complaint.

The credit union claimed the bank has been demanding since 2016 that it stop using “CapEd.” The bank also allegedly filed a petition with the Trademark Trial and Appeal Board to cancel the credit union’s “CapEd” trademark, according to the complaint.

Earlier this year, the bank also allegedly demanded that the credit union transfer all of its website domain names containing “CapEd.”

“In light of defendant’s threats and allegations, plaintiff is in need of, and is entitled to, a judicial determination that (a) there is no likelihood of confusion between plaintiff’s use of ‘CapEd’ on the one hand, and defendant’s CAPFED mark on the other; (b) plaintiff’s use of ‘CapEd’ does not infringe any federal trademark rights owned by defendant and does not constitute unfair competition under federal or state law; and (c) plaintiff is entitled to continue its use of ‘CapEd’ in all geographic areas of use prior to defendant’s application to register its CAPFED mark,” the complaint said.

The credit union claimed that it began using the “CapEd” trademark more than two years before the bank applied for registration of its CAPFED trademark, according to the complaint.

“Plaintiff has been known as Capital Educators Federal Credit Union, doing business under that name, since 1972. Plaintiff’s customers had been referring to it informally as ‘Cap Ed Credit Union’ since at least the early 1980s. Plaintiff formally adopted the ‘CapEd’ name in 2008 and has been doing business under that name continuously since at least that time,” the credit union said in its filing.

Capital Educators has $711 million in assets and about 77,000 members. Capitol Federal Savings Bank had $9.6 billion in assets as of March 31, according to the FDIC.

Capitol Federal Savings Bank has not responded to a request for comment.