Brokers Fight Over Re/Max Name

By MANDY JACKSON

San Diego Business Journal

How similar sounding is Re/Max with Emax?

Close enough for Denver-based Re/Max International to file suit in U.S. District Court alleging trademark infringement and unfair competition by Emax Realty International, a real estate company founded in November as a subsidiary of Del Mar-based Equity Max Mortgage Inc., a 9-year-old mortgage lender.

Re/Max short for real estate maximums is a franchiser of Re/Max-branded real estate agencies. It registered the company name with the U.S. Trademark and Patent Office in 1980.

“The main complaint is the defendant’s use of Emax in terms of real estate brokerage is likely to cause confusion,” said Denver attorney John Posthumus, a shareholder in Greenberg Traurig LLP, the law firm representing Re/Max.

Posthumus said Re/Max wants Emax to stop using the name. If a settlement cannot be reached, Re/Max will pursue monetary damages. “We’re trying to amicably resolve it,” Posthumus said.

In a statement regarding the lawsuit, Emax said: “Emax Realty International’s commissions are substantially below the average real estate agent’s fee and a substantial savings to homeowners, and therefore could never be confused with high-priced commission structures of mainstream brokerage firms such as Re/Max.”

Emax also noted that it uses different logos, colors and fonts in its marketing presentation and that it has a different name.

One difference between the two full-service real estate agencies is that home sellers represented by Emax pay a 3.5 percent commission, instead of the traditional 6 percent often charged by Re/Max and other established real estate agencies.