Skiplagged Trademark Infringement Costs American Airlines $18M.
American Airlines Inc. has filed a lawsuit against airfare search engine Skiplagged Inc., claiming that the company has caused $18 million in damages by misrepresenting itself as an authorized agent of the airline.
Skiplagged Advocates for Its Business Operations
Skiplagged, recognized for its promotion of hidden-city ticketing strategies, contended that consumers are entitled to clear pricing options, regardless of the airlines' opposition to such practices.
During the initial arguments of the trial, Aaron Tobin, representing the search engine, stated, “Skiplagged is engaging in activities that all the airlines disapprove of.”
He emphasized that the company has never claimed to be an official representative of American Airlines, arguing that the use of the airline’s logo does not constitute trademark infringement. American Airlines, headquartered in Fort Worth, Texas, initiated the lawsuit in August 2022, claiming that Skiplagged misled customers by falsely presenting itself as an authorized agent, thereby violating the airline’s terms of service.
American Airlines further alleged that Skiplagged promoted “skiplagging” practices, where travelers book flights with layovers but do not complete the final leg, resulting in empty seats and a loss of revenue for the airline.
Trademark Infringement Issues
Paul Yetter, speaking on behalf of American Airlines, argued that the airline experienced a decline in revenue and that customers encountered confusion due to the actions of Skiplagged. He asserted that Skiplagged intentionally leveraged American's branding for its own financial gain. Defense attorney Aaron Tobin from Condon Tobin in Dallas informed the jurors that his client charges travelers a maximum of $35 for its services.
He countered allegations that Skiplagged operates as a freeloader, emphasizing that the fare information available on the site is freely accessible for customers to use when booking independently elsewhere. Tobin elaborated on how Skiplagged began as a complimentary website aimed at offering comprehensive fare information for travelers.
He also noted that the founder, Aktarer Zaman, 31, left his position as a software engineer at Amazon to dedicate himself fully to the growth of Skiplagged.
Defense Attorney Tobin added: "This case is simply about freedom of choice, even choices that big powerful airlines don't want you to see, choices that they created." Tobin told jurors United's lawsuit backfired on the airline, resulting in increased traffic to Skiplagged. He alleged that American Airlines had been contemplating Skiplagged internally for the past eight years and suggested that the delay in filing the lawsuit was due to the airline's greater interest in addressing "hidden" fares rather than safeguarding its trademark.
$18M Cost for American Airlines
The U.S. District Judge Mark Pittman previously determined in July that American Airlines had delayed too long in filing certain contract claims, having been aware of Skiplagged’s operations since 2016. Nevertheless, the judge permitted American’s copyright claim concerning Skiplagged’s unauthorized use of the airline’s flight symbol, which remained in use as recently as 2023.
Additionally, Judge Pittman rejected summary judgment for both parties regarding trademark infringement and unfair competition claims, leaving these matters for the jury to resolve. Following the dismissal of American Airlines’ claim for false designation of origin last week, the trial now focuses on trademark infringement, damages, and the customer confusion stemming from Skiplagged’s business model.
Skiplagged is an airfare search engine for cheap flights, showing hidden-city ticketing trips in addition to what sites like Expedia, KAYAK, and Travelocity, commonly referred to as skiplagging. It was started by Aktarer Zaman in 2013, when he was 20 years old.
