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Hotels Hit With Loyalty Program Patent Demand Letters

A number of hotels in Texas and around the U.S. are receiving alleged patent infringement demand letters related to hotel loyalty (rewards) programs. The demand letters were created by the organization “JBSHBM, LLC.,” and relate to allegations that a hotel is violating JBSHBM’s patent rights by participating in hotel brand loyalty programs. See a sample demand letter here.

This Florida-based company has sent out an array of demand letters to various hotels across the United States seeking compensation in exchange for a promise not to be sued: make a one-time payment to JBSHBM of $5,000, and then pay annual fees of $500 to JBSHBM.

We recommend that you do not respond to JBSHBM before consulting with your hotel brand’s representative and/or your legal counsel.

If you receive such a letter, please let us know immediately (email jbragiel@texaslodging.com). We also suggest that you make contact with your hotel brand representative.

If you have questions about a demand letter, THLA has attorneys on staff who can walk you through what options are available. Call us at 512-474-2996, or email us at news@texaslodging.com.

Justin Bragiel

Justin R. Bragiel is General Counsel for the Texas Hotel & Lodging Association. Justin handles a diverse array of legal and legislative issues, including local and state hotel occupancy tax, hospitality law, regulatory issues, contract law, employment issues, and more.

Justin joined the Texas Hotel & Lodging Association in February 2008. A member of the Texas Bar, Justin earned a Juris Doctor from Texas Wesleyan University School of Law in 2007, and holds a Bachelor of Arts from the University of Texas at Austin.

Based in Austin, THLA is the largest state lodging association in the United States, serving over 2,500 member businesses by providing operational, technical, educational, marketing and communications services, in addition to governmental affairs representation.

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