TRADEMARK DISPUTES IN CYBERSPACE

PATHFINDER
 

DILUTION: Has Your Trademark Been Blurred or Tarnished?

Introduction // Cases // Articles // Cyberarticles // Web Sites// Books and Treatises






Introduction:
 

Dilution is a type of trademark injury that is distinguishable from trademark infringement. Trademark infringement occurs when a business uses a mark that is the same or confusingly similar to an existing trademark. When arguing a claim for trademark infringement, proving a reasonable likelihood of consumer confusion is the key to establishing liability. Liability for trademark dilution, however, arises regardless of whether consumer confusion exists or not.
 

Trademark dilution has been defined as the lessening of the capacity of a trademark to identify and distinguish its goods or services. This is a somewhat confusing theory of trademark injury. In order to understand this concept, trademark dilution must be divided into two separate subcategories before it can truly be defined. The two types of trademark dilution are dilution due to the blurring of a famous mark and dilution due to the tarnishment of a trademark by placing it in an unsavory or unwholesome context.
 

Dilution by blurring threatens a trademark's distinctive characteristics by chipping away at the ability of the mark to instantly identify its product. For example, when you see the mark "Kodak", you immediately think of film for your camera. However, if a series of unrelated products were to be identified by the same mark, such as Kodak tires, Kodak crayons and Kodak beer, that instant association you once conjured up would be eroded.

Use of a famous mark on dissimilar products would lessen the capacity of the term "Kodak" to draw an instant association with film. Dilution by tarnishment occurs when a trademark is linked to products of poor quality or portrayed in an unwholesome, often pornographic, context. For example, Pillsbury sued Screw Magazine when it featured the famous doughboy "Poppin' Fresh" performing a variety of lewd sexual acts on its cover. Pornographic web sites are infamous for incorporating well known trademarks and trade names in their domain names.
 

Until passage of the Federal Trademark Dilution Act in January of 1996, lawsuits claiming injury arising from trademark dilution were not actionable under Federal law. The Federal Trademark Dilution Act provides trademark owners with a strong remedy against dilution of their mark by either blurring or tarnishment. The novelty of this new federal cause of action has been embraced as a favored cause of action in equally novel Internet related trademark lawsuits. The Federal Trademark Dilution Act can be found at http://www4.law.cornell.edu/uscode/15/1125
 
 

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Cases

Dilution is a hot new topic for Internet users and there appears to be quite a few cases involving blurring by using another's trademark as their domain name.  I found these cases under both Westlaw and Lexis-Nexis.  On Westlaw, I recommend going into information by area of topic, then to Intellectual property and then to case law and using natural language to pull up cases.  Keywords are the the various topic headings: dilution and Federal Trademark Act.

Blurring
 

  • Intermatic Inc. v. Toeppen , 947 F. Supp. 1227 (N.D. Ill. 1996) Panasonic International LP v. Toeppen, 40 USPQ 2d 1996 (N.D. Cal. 1996).

  •  

     
     
     

    I placed these two cases together because they involve similar situations. Dennis Toeppen, an individual known as the founding cybersquatter, had registered over 200 domain names that incorporated famous trademarks. Toeppen sat on these sites until companies attempted to put up a web site and then he tried to extort money from them in order to get the domain name. Intermatic and Panavision sued for trademark dilution and won. His attempted exploitation of these famous marks was held to dilute the marks and his attempt to sell the domain names was considered commercial activity for the purposes of the Federal Dilution Act.



     
  • Actmedia Inc. v. Active Media Intl., Inc., 1996 WL 466527 (N.D. Ill. 1996).

  •  

     
     
     

    The court held that defendant's reservation of the domain name constituted trademark dilution since Actmedia was a strong and distinctive source identifier.



     
     
  • Planned Parenthood Fed. Of America Inc. v. Bucci., 42 USPQ2d 1430 (SDNY 1997).

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    Planned Parenthood for family planning services was diluted by anti-abortion site using same title.



     
  • TeleTech Customer Care Management Inc. v. Tele-Tech .com, 42 USPQ2d 1913 (C.D. Cal. 1997).

  •  

     
     
     

    Trademark dilution found due to blurring.



     
  • Playboy Enterprises Inc. v. Calvin Designer Labe,. 44 USPQ 2d 1156 (N.D. Cal. 1997).

  •  

     
     
     

    Playboy proved that defendant's use of Playboyxxx.com as a domain name was likely to dilute the famous mark.


    Gateway 2000 Inc. v. Gateway.Com Inc.Oppendahl Larson v. Advanced Concepts, 1997 Lexis 2144 (VI. D. N.C. 1997)

    Claim for trademark infringement due to blurring denied because plaintiff was unable to prove that the mark was famous when the defendant registered its domain name.



     
  • Avon Products, Inc. v. Lew, Civ.Act. No. 96 -1213 (SAS) (S.D. N.Y. Filed Feb. 20, 1996).

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    After Avon found out that the domain name Avon.com had been registered by an unrelated third party, it filed a Federal lawsuit under the Federal Trademark Dilution Act and convinced NSI to terminate defendant's domain name account.


    Tarnishment
     

  • Hasbro, Inc. v. Internet Entertainment Group, Limited. Civ.Act. No. C96-130 WD (W.D. Feb., 1996).

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    Hasbro, Inc., the originator of the famous Candyland board game for children, successfully obtained a preliminary injunction against defendants for using the domain name candyland.com in connection with a sexually explicit web site. Hasbro obtained the injunction based on a theory of tarnishment of trademark.



     
  • Toys "R" Us, Inc. v. Akkaoui, Civ. Act. No. C96-3381 CW (N.D. Cal. Oct. 29, 1996).

  •  

     
     
     
     
     

    Plaintiff successfully enjoined defendant's further use of ADULTRUS.COM domain name due to likely dilution of the plaintiff's famous mark.

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    Articles

    There are a few articles dealing directly with the issue of trademark dilution on the Internet.  Trademark dilution is a concept that has often been used by trademark owners to prevent the use of domain names as is illustrated in the preceding cases.  The most helpful search vehicles for articles were Westlaw, Lexis-Nexis and Legaltrac.  Legaltrac is an online version of the index to legal periodicals.  Searches can be done by typing in an author or a subject matter topic.  Legaltrac provided many articles on Cyberlaw generally.  Westlaw and Lexis-Nexis: legal online databases provided full text searches.  In Westlaw, I used Topics by area of practice, hit the Intellectual Property icon and used natural language to locate law reviews and trade journals concerning these novel issues of trademark infringement on the Internet.  Key terms were "dilution" "cyberlaw" and "internet".   The best source for information on Westlaw was the The Practicing Law Institute for Patent, Copyright, Trademarks, & Literary Property.  It provided all kinds of current and relevant information pertaining to Internet related trademark disputes.  Many of the articles it provides are used in Computer Law and Intellectual Property Seminars, Symposiums and ad sections in Handbooks.



    This article is an excellent resource to begin one's research of dilution because it contains a short primer on the Federal Trademark Dilution Act and how this form of legal injury differs from tademark infringement.  It also provides good definitions of the two types of dilution: blurring and tarnishment.



     


    This article provides a history of Internet-related dilution  and lists and describes ten reported cases involving dilution claims against Internet based uses.



     


    This provides a brief historical background of trademark law and the tension between trademark protection and competition.  It also comments on the legislative expansion of protection for trademarks in the Federal Trademark Dilution Act of 1996.



      This is well written and an insightful review of Trademark Issues in Cyberspace.  I found this fairly useful for providing a good review.



    This is a handy resource because unlike many of the other articles, it focuses solely on trademark issues on the Internet.  It also is a good reference for those interested in domain name disputes.


    Using the search term "Cyberlaw",   I found many good general sources and book reviews addressing legal implications of Internet commerce.
     

    The definitive course in cyberlaw: if your school doesn't have one, here's an outline to get one started. Richard P. Klau.
      Cyberlaw: What You Need to Know About Doing Business Online. (Review) Mary Hemmings.
    Subjects: Books - Reviews/ People/Johnston, David/ Handa, Sunny/ Morgan, Charles.
      The law develops slowly but surely. (cyberlaw) Mark Grossman.
    Subjects: Internet - Laws, regulations, etc/Computers - Laws, regulations, etc.
      Academic posts. (cyberlaw scholarship)(Cyber Esq.) Stuart Biegel.
    Subjects:Information law - Bibliography
      Cyberlaw: you've surely heard of it. Mark Grossman.
    Subjects:Information law - Interpretation and construction/
      CyberLaw: The Law of the Internet. (book reviews) Lynden Griggs.
    Subjects: Books - Reviews/People/ Rosenoer, Jonathan
     


    Cyberlaw: legal malpractice in the age of online lawyers. Natacha D.Steimer.
    Subjects:Computers - Laws, regulations, etc./ Attorneys - Malpractice
     
     

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    Cyberarticles

    There are many new current online articles about these newest forms of cyberspace infringement.  The best search engines are Infoseek, Alta Vista, and Nestcape.  I recommend simply typing in Federal Trademark Dilution.  There are a few online articles dealing with this issue.  For dilution issues, the New York Law Journal, BitLaw and the National Law Journal have the most prolific and current articles.  Good searching!  I have included the search engines where I found the cyberarticles.



    Covers marks that are protected under the Act; proving dilution of a mark;
    Remedies under the Act; and the Relationship of federal Act to state dilution acts.



     


    Advice from the law firm of Jones and Askew.  Adresses issues of Trademark Dilution.



     


     Applications On Unrelated, Non-Competing Products May Now Be Grounds For Injunction.  By Jeffrey R. McFadden and Donna Ray Berkelhammer  Published in Carolina Business, June, 1996. Used by permission.



    Written: May 12, 1998: The 9th Circuit Court of Appeals has sent a strong message to "cyber-pirates" who steal the trademarks of others for use on the Internet, Panavision International, L.P. v. Dennis Toeppen, Docket No. 97-55467, D.C. No. CV-96-03284-DDP-JRx. This is the first decision by a Court of Appeals to apply the rules of personal jurisdiction and
    trademark rights to conduct that occurred in cyberspace; the decision will have far reaching implications.



    Courts have ruled that owners of famous marks are entitled to those marks in domain names. By Andrew Baum and Mark Epstein. SPECIAL TO THE NATIONAL LAW JOURNAL. The National Law Journal (p. C03)
    Monday, January 27, 1997.



     


    The New York Law Journal: April 3, 1997. BY DOMINIC BENCIVENGA



     


    By: Robert C. Scheinfeld and Parker H. Bagley. New York Law Journal, March 25, 1998. [Ed.: The following is an excerpt from the article published in the New York Law Journal]  This provides good insight into the two years following enactment of the Federal Trademark Dilution Act.



     


    There are similarities and significant differences between the Federal Act and the Model Act of 1964. Most states still use a
    version of the Model Act of 1964, so that law retains its vitality and importance. This article highlights of some of the
    important features of state and Federal Anti-Dilution laws:.
     
     

    Introduction // Cases // Articles // Cyberarticles // Web Sites// Books and Treatises

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    Web Sites

    The Internet is obviously an important resource tool for up-to-the minute information regarding legal disputes on this innovative medium.  There are a plethora of good web sites for all areas of Internet related legal issues.  I have included the most helpful resources for my topic.  Many organizations also have their own sites such as the Patent and Trademark Office.  These organizations and live numbers are under the "Organizations" link located on the home page of this site.  If you have questions concerning these type of issues, I suggest typing "Cyberlaw" and keywords from your specific issue on search engines such as Infoseek, Netscape and Alta Vista.  Also many of the sites listed below have pages of links recommending certain sites on any particular topic.


    This is excellent web site to begin to search Intellectual Property issues on the Internet. It has its own search engine so you can type in the legal issue that you are interested in and it pulls up not only its own information but a list of links related to the requested search item. This is how I began my search. I got lucky because it eliminated a lot of search time by directing me to handy links on metatag, hyperlink and framing issues.



     


    I found this to be the most useful and current web site for my pathfinder: Here's the introduction to the Website:
    Welcome! Most visitors to Search Engine Watch fall into one of two groups. There are webmasters, web marketers and others involved with creating and promoting web sites. Then there are search engine users, everyone from researchers, librarians and general web surfers who want to know how to find things better using search engines.

    Danny Sulllivan is the expert in this field.  He is a master at current Internet related IP litigation.  He also breaks down current cases and describes not only the issues but the legal significance of these decisions and/or settlements. In his feature entitled
    "Lawsuit Over Metatag Keywords", Sullivan made a chart of all the metatag lawsuits, their outcomes and their legal significance in an easy to read and understand manner. (article address listed above). I can't say enough about this web site. Sadly, I read that Danny Sullivan is going to be an expert in a recent case involving Playboy and will not be able to comment any longer on certain issues.



      This internationally acclaimed IP resourceWebsite, the creation of Professor Jon Cavicchi, JD, MIP, and  Bill Shaw, JD, MIP, of  Sitesurfer Publishing LLC, links to a unique collection of  intellectual property resources served up by the Franklin Pierce Law Center (U.S. News & World Report - top ranked IP law school in the country three years running), as well as others on the Internet.  It is intended to offer "one stop shopping" for intellectual property professionals in academia, business and science, as well as for inventors and entrepreneurs.

     This institute has made a name for itself in the Intellectual Property arena. If you are interested in attending summer school to learn about IP issues, this site provides online applications for attending its summer institute classes.



     


    This site provides interesting industry watch information as well as a more global perspective.  It does seem to be under a little bit of construction for the time being.



     


    A continually-updated website designed to be the most comprehensive resource available on the Internet for information related to technology law, especially including intellectual property law (patent,copyright, and trademark law) for software, electronic, and telecommunication products and services.



    An excellent Resource Guide providing links to all  types of  organizational, university and other web sites devoted to Cyberlaw
    Including:

    1.   Chicago-Kent

    2.   Cyberlaw.com

    3.   Cyberlaw Encyclopedia

    4.    Internet/Cyberlaw
     



    This individual is a wonderful source of information. He has written several articles online including "Trademark Law for Webmasters". Walton offers legal insight to the current Internet related trademark debates in a comprehensive and well written manner. He can also be reached at : info.netatty.com.



    This government site provides information about its services, trial and appeal board and how to search the United States trademark database. I was unable to find any statement about recent Internet related trademark issues.
     
     




    Introduction // Cases // Articles // Cyberarticles // Web Sites// Books and Treatises






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    Books & Treatises

    It is important to remember that since trademark disputes in cyberspace are such current topics, more information is available online than in paper format. Many of the cases and events described in this pathfinder have occurred in the last three years. I did find some books addressing cyberlaw generally on barnesandnoble.com  and Amazon.com.  These books are often practical guides for users interested in setting up shop on the internet.  I also found several books at the Franklin Pierce Library (phone number and information is included on the main page).  As for Sabio, I went into the multi-search databank that pulls up books and articles at the same time.  The Keywords I entered were "Trademark Dilution" and "Internet."

    McCarthy, J. Thomas. 3 McCarthy on Trademarks and Unfair Competition, (4th Ed.), Clark Boardman Callaghan, a division of Thomson Information Services, Inc., 1997.

    McCarthy adresses trademark infringement in Cyberspace in his latest edition. This treatise is a useful resource to read before ingesting many of the web articles and sites dealing with these issues. MCCarthy has a way of explaining the current disputes and jargon in a clear and understandable language. I highly recommend this treatise.


    Rosenoer, Jonathon. Cyberlaw: the Law of the Internet, Springer-Verlag New York, Inc., Jan. 1997.

    Rosenoer is an expert in the field. His book provides a comprehensive guide to trademark issues on the Internet, discusses relevant case law and implications for further legal developments. However, chronology of significant legal events stops in early 1996, before some of the more recent trademark issues had evolved.


    Brinson, J. Dianne & Radcliffe, Mark F. Multimedia Law and Business Handbook, Ladera Press, 1997.

    This book is written for nonlawyers and offers a practical guide for protecting one's Internet and multi-media product. The book states that for less than an hour of an attorney's time, this book will save you thousands of dollars in legal fees and help you to avoid potential legal disputes. The book also includes twenty-one sample contracts in both print and electronic form for Internet agreements as well as other types of contracts.


    Godoftas, Lisa and Elias, Stephen. Patent, Copyright and Trademark Law: a Desk Reference to Intellectual Property Law, Nolo Press, 1997.

    A handy guide that explains key terms and concepts in intellectual property. It has a section on trademark law. Since this second edition was recently revised in 1997, it contains information on web issues and useful sites for further questions.


    Citations I found for other relevant books located at the Franklin Pierce Library:
    Citations I found for other relevant books located at the Franklin Pierce Library:
     

    My Search In Sabio produced this information:
     
     

    2. Source: ABI/Inform (Business) Title: Famous marks have legal protection against poachers
    Author: Retsky, Maxine Lans.From:  ISSN: 0025-3790
    Marketing News Nov 9, 1998 v32n23

    Abstract: McDonald's, Coca-Cola and Nike swoosh all are trademarks that are instantly recognizable by most people.
     These marks are famous marks.  Beyond the satisfaction of world recognition and impressive sales figures, the owners
    of famous marks have the advantage of an alternative avenue of protection beyond traditional trademark law: the Federal
    Trademark Dilution Act (FTDA), which protects the comm rcial value and distinctiveness of famous marks.  Adopted in 1996,
    the FTDA protects trademarks and service marks from being diluted or tarnished by improper commercial use.  The FTDA
    has been used successfully to squash "cybersquatters"   speculators who register famous marks as Internet names
    and then try to sell them to trademark owners - by providing the argument that the use blurs the quality of the mark.

    3. Source: ABI/Inform (Business) Title: The limitations of trademark law in addressing domain
    names disputes Author: Swartz, Danielle Weinberg. From:  ISSN: 0041-5650 UCLA Law Review Jun 1998 v45n5

    Abstract: The enormous popularity of the Internet has led
    to competition between trademark holders and domain name
    registrants for the right to use trademark domain names.
     Traditional trademark law and dilution law fail to resolve
    adequately the limitations of current trademark and dilution
    law and recommends the creation of a new federal cause of
    action.

    4. Source: ABI/Inform (Business)

    Title: Trademark protection for Internet domain names
    Author: Posch, Robert J Jr.
    From:  ISSN: 0012-3188
    Direct Marketing Jul 1998 v61n3

    Abstract: More and more commonplace today, domain name strategy
    is being integrated with a company's trademark strategy.
     On the Internet, they can be one and the same.  The domain
    identifies a host name as comprised of the company's "name,"
    followed by a period and then a "top-level domain name."
    Each domain name is assigned in a hierarchy that starts
    at the right end of the name.  You should do a search on
    the domain, as you would normally do prior to trademark
    testing.  It is essential to protect the company's rights
    under the Federal Trademark Dilution Act whereby a defendant's
    ownership of a registered mark on the principal register
    is an absolute defense.  Recent remedies in Internet domain
    name trademark litigation are also presented.

    5. Source: ABI/Inform (Business)

    Title: One year after dilution's entry into federal trademark
    law
    Author: Serad, Susan L.
    From:  ISSN: 0043-003X
    Wake Forest Law Review Spring 1997 v32n1

    Abstract: On January 16, 1996, the doctrine of trademark
    dilution was introduced into federal law when President
    Clinton signed the Federal Trademark Dilution Act of 1995.
     The Act provides an owner of a famous trademark with a
    federal remedy for dilution.  Dilution occurs when the brand
    recognition that accompanies a famous trademark is diminished
    by another party's use of the mark.  During the past year,
    courts have struggled to incorporate the doctrine of dilution,
    originally a creature of state law, into federal trademark
    law.

    6. Source: ABI/Inform (Business)

    Title: Name game poses legal risks
    Author: Roberts, Charley.
    From:  ISSN: 0013-094X
    Editor & Publisher Dec 14, 1996 v129n50

    Abstract: Media lawyers and law professors say that newspaper
    publishers, editors and general counsel should be increasingly
    mindful of trademarks, not only to guard against being sued
    but also to protect their own distinctive names, logos and
    features.  According to Ina Risman, head of intellectual
    property practice at Pillsbury, Madison & Sutro, there
    is a vast increase in people recognizing the value of their
    marks, and there will be an increase in litigation in every
    field, including publishing.  In addition to being sued
    for infringement by a competitor, there is also potential
    for litigation arising form what is referred to as trademark
    dilution.  This involves using a famous trademark, such
    as Rolex, as the name of a car.  There is no competition
    between watches and automobiles, and little likelihood of
    confusion, but using this famous mark as the name of a car
    may dilute its value to the watch manufacturer.
    Subject: Newspapers.Trademarks.Infringement.Litigation.(9190)
    United States;.(8690) Publishing industry;.(4330) Litigation;.
    WORD
    COUNT:  01885
    COPYRIGHT:  Copyright Editor & Publisher Inc 1996
    NAMED COMPANY 1:  Wall Street Journal
    NAMED COMPANY 2:   California Journal
    Language: English
    ISSN: 0013-094X
    Database No.: 99-95733
     
     

    7. Source: ABI/Inform (Business)

    Title: Famous marks now federally protected against dilution
    Author:  Samuels, Linda B;Samuels Jeffery M.
    From:  ISSN: 0743-9156
    Journal of Public Policy & Marketing Fall 1996 v15n2

    Abstract: The Federal Trademark Dilution Act of 1995 provides
    the owners of famous marks with a new, valuable weapon against
    uses that dilute their distinctive quality.  Companies with
    famous marks now will be able to stop other firms from using
    their mark on unrelated products even when there is no confusion
    as to source.  The new federal dilution statute represents
    a major deviation from the historical roots of trademark
    law.  Although trademark protection heretofore has been
    justified by the need to prevent consumers from being confused
    and deceived, dilution considers trademarks as a property
    right that can be owned, thereby viewing trademark infringement
    as a form of trespass.

    8. Source: ABI/Inform (Business)

    Title: Avon traps Internet infringer in pioneering case
    Author: Anonymous.
    From:  ISSN: 0960-5002
    Managing Intellectual Property May 1996 n59

    Abstract: In one of the first cases to be decided by the
    Internet regulator, Avon Products has managed to stop a
    New York woman, Carnetta Wong, from using the Internet domain
    name "avon.com." However, a court decision over
    the damages that Avon is demanding from Wong for trademark
    dilution and infringement is still pending.

    10. Source: University of Arizona Library Catalog

    Title: Trademark dilution / Tony Martino.
    Authors etc.: Martino, Tony.
    Publication: Oxford : Clarendon Press ; New York : Oxford
    University Press, 1996.

    Contents: 1. Introduction -- 2. An Alien is Born -- 3. Life
    During Schechter -- 4. Desperately Seeking a Rationale --
    5. Schechter's Radical Exegesis -- 6. From Theory to Revelation
    -- 7. The First Generation on Trial -- 8. Inauspicious Dawning
    -- 9. Dilution as Genericide and Tarnishment: Another Fine
    Mess -- 10. An Emerging Consensus -- 11. A 'Merely Reasonable'
    Justification of Dilution -- 12. Mirror Mirror on the Wall,
    What's the Meaning of It All? -- 13. The Last Word Goes
    to Schechter.
    Subject Headings: Trademarks -- Great Britain. Trademarks
    -- European Union countries.

    ISBN: 0198260717 (acid-free paper)
    Holdings:  Main
    Call No: KD1439 .M37 1996
    Public Note: IN LIBRARY
     
     
     

    13. Source: Arizona State University Library Catalog

    Title: Federal Trademark Dilution Act of 1995 : report (to
    accompany H.R. 1295).
    Publication: [Washington, D.C.? : U.S. G.P.O., 1995]
    Physical Description: 10 p. ; 24 cm.
    Subject Headings: Trademarks -- United States. Commercial
    products -- United States.

    Other Notes: Caption title. Distributed to some depository
    libraries in microfiche. Shipping list no.: 96-0094-P. "November
    30, 1995." Includes bibliographical references.
     
     



    Introduction // History // Statutes // Metatags // Linking and Framing
     Dilution // Definitions // Organizations and Contacts
    General Guidance for Domain Name Disputes


     


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