Tag Archives: trademark

Sponsored listing trademark action survives motion to dismiss

T.D.I. Intern., Inc. v. Golf Preservations, Inc., (Slip Op.) 2008 WL 294531 (E.D.Ky. January 31, 2008)

Plaintiffs T.D.I. International and XGD Systems sued their former employee Samson Bailey and his company Golf Preservations for, among other things, violation of the Lanham Act, 15 U.S.C. §1051 et seq. Plaintiffs alleged that defendants’ purchase of plaintiffs’ trademarks to trigger competitive advertising on Google and Yahoo was trademark infringement and unfair competition.

Defendants moved pursuant to Fed. R. Civ. P. 12(b)(6) to dismiss the complaint, but the court denied the motion. It found that under the Twombly standard, plaintiffs had alleged facts sufficient to state a claim to relief that was plausible on its face.

Predictably, defendants had argued that the purchase of plaintiffs’ marks as keywords did not constitute a “use” of the marks as provided in the Lanham Act at 15 U.S.C. § 1127. They relied heavily on Interactive Products Corp. v. a2z Mobile Office Solutions, Inc., 326 F.3d 687, 695 (6th Cir.2003) (a case involving the appearance of a mark in the post-domain path of a URL), and 1-800 Contacts, Inc. v. When U.com, Inc., 414 F.3d 400 (2d Cir.2005) (involving pop-up advertisements triggered by page content and user activities).

Plaintiffs relied on a number of cases to argue that the purchase of keywords was a use as defined in the Lanham Act, and also (correctly) asserted that the scenario of buying keywords to trigger advertising is notably different from use in a post-domain URL (as in Interactive Products) and unseen triggering of pop-up advertisements (as in 1-800 Contacts). Given the split of authority and the corresponding “uncertain state of the law on the specific issue presented in [the] case,” the Court sided with plaintiffs and found that defendants’ arguments were not sufficient to warrant dismissal.

Personal name must have trademark significance for protection under ACPA

Salle v. Meadows, No. 07-1089, 2007 WL 4463920 (M.D. Fla. December 17, 2007)

Defendant Meadows thought that Plaintiff Salle owed him about $9,500.  He was apparently having some trouble getting paid, so he registered the plaintiff’s personal name as a domain name – briansalle.com.  He then tried to sell it to Salle for the amount of the purported debt.  Being uninterested in the purchase, Salle filed a cybersquatting complaint against Meadows in federal court.

Salle asserted claims under both 15 U.S.C. §1125(d) and 15 U.S.C. §1129. Both parties moved for summary judgment. It was a mixed ruling, but largely a win for Salle.

The court addressed the §1129 claim first.  That portion of the Lanham Act provides:

Any person who registers a domain name that consists of the name of another living person, or a name substantially and confusingly similar thereto, without that person’s consent, with the specific intent to profit from such name by selling the domain name for financial gain to that person or any third party, shall be liable in a civil action by such person.

Meadows argued that in trying to sell the domain name and thus recover money owed to him, he was not trying to profit, and therefore not liable under §1129.  Despite some dispute over whether the debt was actually owed and to whom, the court ruled in Salle’s favor.  “[C]yber-extortion is not a permissible way to recover a debt,” the court warned.

As for the §1125(d) claim, the court ruled in Meadows’s favor.  Section 1125(d) provides, among other things, that a person shall be liable to the “owner of a mark, including a personal name which is protected as a mark under [§1125]” if that person has a bad faith intent to profit from that mark. 

Salle argued that §1125 provides that all personal names are subject to trademark protection. Meadows, on the other hand, argued that a personal name must have some sort of trademark significance, e.g., acquired distinctiveness, in order to fall with the protection of §1125. Agreeing with Meadows’s interpretation of the section, the court found that Salle failed to present enough evidence to survive summary judgment on the question of whether he had protectible trademark rights in his personal name.

Filter maker says Apple’s trademark threats a bunch of hot air

“Lowest perceptive capabilities.” Is that code for “a moron in a hurry“?

Chicago-based BlueAir, Inc. has apparently been getting some threats from Apple over BlueAir’s pending trademark registration for the mark AIRPOD, to be used in connection with desk top air purifiers. Apple says AIRPOD will infringe on the IPOD mark.

BlueAir has gone on the offensive, asking the U.S. District Court for the Northern District of Illinois to enter a declaratory judgment of no infringement.

The heart of BlueAir’s allegations are as follows:

“There is no reasonable likelihood of confusion, mistake, or error in the marketplace for persons of even the lowest perceptive capabilities who are seeking an iPod music player considering or buying an AIRPOD desktop air cleaner instead.”

This dispute has been going on for a few months, and it is interesting to see suit filed now, to essentially coincide with the introduction of the MacBook Air.

BlueAir, Inc. v. Apple, Inc., No. 08-427 (N.D. Ill. filed January 18, 2007)
[Download the Complaint]

Ownership of domain name grounds for civil contempt and award of attorney’s fees

But mere ownership of domain name, without “use,” was not enough to give rise to infringement.

Careylicensing, Inc. v. Erlich, No. 05-1194, 2007 WL 3146559 (E.D. Mo. October 25, 2007)

Plaintiff Carey International and defendant International Chauffeured Services are competitors in the limousine industry. Carey sued International back in 2005 for trademark infringement, and the parties settled the case. They entered into a consent judgment, which is, essentially, like a contract between the parties that was made an order of the court. The consent judgment prohibited, among other things, the defendant from owning any domain name containing the word “Carey.”

In February 2007, the plaintiff noticed that the defendant owned a domain name careylimousine.net. The plaintiff eventually went back into court, asking that the defendant be held in contempt for violating the consent judgment and, pursuant to the terms of the consent judgment, be awarded attorneys fees and “liquidated damages,” for breaching the agreement.

The court found that ownership of the domain name by the defendant warranted a contempt citation. It also found that that ownership was a breach that made an award of attorney’s fees proper. But the court declined to award liquidated damages.

The consent judgment provided that liquidated damages be awarded for any “infringement” of the plaintiff’s mark. But in this case, there was no infringement. The court found that merely owning the domain name, without having an active site there, was not a “use” in commerce as required by the Lanham Act. Without the requisite element of use, there could be no infringement.