LegalZoom is an online legal documents company that is suing their rival Rocket Lawyer Inc. over violations of Federal Trade Commission guidelines. LegalZoom is claiming that Rocket Lawyer is using unfair business tactics for “the purpose of injuring LegalZoom.”
?We think the claims are completely frivolous,? stated Rocket Lawyer’s founder and executive chairman Charley Moore. ?It?s simply an attack on their fastest-growing competitor.?
The lawsuit was filed in federal court in California. LegalZoom wants Rocket Lawyer to stop misusing the term “free” in their ads and promotions because it “is bad for consumers. and bad for the industry.”
LegalZoom is also accusing Rocket Lawyer of trademark infringement and unfair competition because Rocket Lawyer allegedly registered domain names like legalzoomgadget.com. LegalZoom said that this is confusingly similar to their trademarks.
LegalZoom started 12 years ago and they sell personalized legal documents like wills, trademark registrations, and government filing fees.
LegalZoom recently filed for a $120 million IPO and they have been the subject of lawsuits themselves. LegalZoom charges a minimum of $69 for wills and $169 for trademark registrations. RocketLawyer started in 2008 and they are selling pre-paid legal plans for between $9.99 to $39.95 per month.