According to The Dallas Morning News, FremantleMedia cited in its lawsuit that the contest is a trademark violation, and wants to stop the contest at Palazio Men's Club in Austin and to seize its profits. It further said that the 'Stripper Idol' contest could mislead the public to believe that the TV show sponsors the event.
As per the lawsuit, adverts for the contest use a logo with a
'color scheme, design and font' similar to that of the TV show, and
waitresses at the club wear T-shirts emblazoned with the logo,
according to the lawsuit. Palazio says that it has no plans to stop
the competition, which has grown in popularity since the lawsuit
was made public.
"It's shocking. We're just a local company it's not like we're some big threat," the New York Daily News quoted club manager Scott Stevenson as saying.