The Eagles Settle 'Hotel California' Trademark Lawsuit With Mexico Inn

The Eagles ($60 million)
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The legendary rock band previously argued that the hotel had been attempting to capitalize on their 1976 album's success.

The Eagles have settled a lawsuit with a Mexican hotel using the name of the band's famous song "Hotel California." 

A joint dismissal of the group's lawsuit against the hotel in Todos Santos, Baja California Sur, was filed on Wednesday with the U.S. District Court in Los Angeles. The same day, the U.S. Patent and Trademark Office accepted Hotel California Baja's request to permanently abandon its trademark application. 

"This matter has been settled by mutual agreement of the Parties," said Eagles' attorney Tom Jirgal of Loeb & Loeb LLP in a statement. 

In the initial lawsuit filed last year, the iconic rock band argued that the hotel was trying to capitalize on its success. As The Eagles' filing pointed out, the band has become synonymous with the song "Hotel California." As the act's most popular album, Hotel California is said to be "essence of the band itself" and, as such, all sorts of merchandise has been sold with the mark. 

"Through advertising targeted to U.S. consumers, and in-person communications, Defendants lead U.S. consumers to believe that the Todos Santos Hotel is associated with the Eagles and, among other things, served as the inspiration for the lyrics in 'Hotel California,' which is false," wrote attorney Laura Wytsma.

The small hotel originally opened under the name Hotel California in 1950, but went through subsequent ownership and name changes, according to the complaint. The Eagles' song was released in 1976 on the album of the same name, which went on to win the 1977 Grammy for record of the year.

When the hotel's current owners, Debbie and John Stewart, bought the property in 2001, the suit alleged they intended to boost their business by creating a reputation "based at least partially on the hotel's reputed, but false, connection to the Eagles." In so doing, the hotel played The Eagles' music and sold T-shirts referring to then hotel as "legendary," which the band argued would bring consumers to believe "they have visited 'the' Hotel California made famous by the Eagles."

The hotel denied it was trying to mislead guests and argued customers were unlikely to be confused. 

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