In case of Ariel v. Ariel, the little Ariel triumphs

RIA that was sued by asset manager wins case on appeal
FEB 02, 2018

A federal appeals court in Illinois has reversed a lower court's decision that Florida-based RIA Ariel Capital Advisors had infringed on the trademarks of Chicago-based Ariel Investments, an asset manager. In March, a federal court in Chicago imposed a fine on Ariel Capital and ruled that its owner, Christopher Bray, would have to pick a new name for the business because his firm likely would be confused with the larger, nationwide Ariel Investments, which has held trademarks on its name since as early as 1984. The advisory firm, which Mr. Bray says was named after his daughter, is now known as Bray Capital Advisors and is based in Naples, Fla. A three-judge panel in the U.S. 7th Circuit Court of Appeals that reversed the ruling based their decision on an interpretation of the Lanham Act, which governs trademarks, saying that jurisdiction under the law depends on state statutes. Since Ariel Capital has no property or clients in Illinois, or advertised there, the panel found that the smaller firm was not "acting" in Illinois. "Knowing about a potential for harm in a particular state is not the same as acting in that state — and it takes the latter to permit personal jurisdiction under state law," the appeals court wrote. "No matter how one might characterize the relation between Ariel Investments and Ariel Capital, it is easy to describe the relation between Illinois and Ariel Capital: none," the panelists ruled. "That resolves this litigation."

Latest News

Investors win lawsuit against Atlanta B-D over tax shelter investment, potentially a first
Investors win lawsuit against Atlanta B-D over tax shelter investment, potentially a first

InvestmentNews reported in 2017 that the IRS was scrutinizing the tax shelter land deals, called syndication conservation easements.

Pontera unveils non-discretionary advice tools in continued retirement platform buildout
Pontera unveils non-discretionary advice tools in continued retirement platform buildout

Advisors gain a second workflow for 401(k) guidance as the fintech expands beyond bulk rebalancing, backed by new policy research on advice access.

HSA balances hit record high, but are clients using them wrong?
HSA balances hit record high, but are clients using them wrong?

New data shows most people do not have enough saved to cover costs and are not fully utilizing their accounts.

Advisor moves: LPL, Cetera, Raymond James, NewEdge Wealth
Advisor moves: LPL, Cetera, Raymond James, NewEdge Wealth

Firms announce new recruits this week, with teams overseeing hundreds of millions in client assets switching affiliations.

Stratos Wealth adds $400M with RPI Financial Life Planners
Stratos Wealth adds $400M with RPI Financial Life Planners

It’s the 12th deal for Stratos since SEI's investment and follows 11 acquisitions worth $4.8B in 2025.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income