News Corp. Settles Lawsuit Against IMG Worldwide Over Rights to Daily Name

A unit of News Corp. (NWSA), which introduced a tablet computer news publication called The Daily, settled a lawsuit against IMG Worldwide Inc. over rights to the name The Daily.

“We reached a settlement and we’re pleased,” Jack Horner, a spokesman for New York-based News Corp., said today in a telephone interview. He declined to disclose terms of the agreement.

The Daily Holdings Inc., the News Corp. unit, dismissed the lawsuit filed in December, according to a filing today in U.S. District Court in Manhattan that didn’t give a reason. The company said in court papers that IMG had claimed common-law trademark rights to the name The Daily.

News Corp. introduced The Daily, a subscription newspaper for users of Apple Inc. (AAPL)’s iPad tablet computer, in February. IMG Worldwide published a fashion-industry publication called The Daily Front Row.

IMG sold The Daily Front Row in early January and had no comment on the lawsuit, Jim Gallagher, a spokesman for IMG, said in an e-mail.

The Daily Front Row was sold to its editor, Brandusa Niro, and a company called DFR, according to an amended complaint filed in February by the News Corp. unit. IMG transferred the trademark rights to the new owner, News Corp. said.

Niro didn’t immediately return a message seeking comment.

‘Simple Proposition’

IMG contacted News Corp. in November after it heard of plans to introduce the tablet newspaper and said it owned the rights to The Daily, News Corp. said in the complaint. The complaint was filed because News Corp. anticipated a lawsuit from IMG.

“This case is brought to confirm the simple proposition that nobody can own the words ‘The Daily’ when used in the name of a media outlet,” lawyers for Daily Holdings said in the amended complaint.

News Corp.’s digital Daily newspaper features general news, sports, arts and opinion.

News Corp. owns the Fox Television Network, the Twentieth Century Fox film studio and The Wall Street Journal. IMG Worldwide produces and distributes sports programming and represents people in the sports, entertainment and fashion industries.

The case is The Daily Holdings Inc. v. IMG Worldwide Inc., 10-9204, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net.

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net

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