1-800 CONTACTS, INC. v. WhenU. Com

309 F. Supp. 2d 467, 195 A.L.R. Fed. 641, 69 U.S.P.Q. 2d (BNA) 1337, 2003 U.S. Dist. LEXIS 22932, 2003 WL 22999270
CourtDistrict Court, S.D. New York
DecidedDecember 22, 2003
Docket02 Civ. 8043(DAB)
StatusPublished
Cited by14 cases

This text of 309 F. Supp. 2d 467 (1-800 CONTACTS, INC. v. WhenU. Com) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
1-800 CONTACTS, INC. v. WhenU. Com, 309 F. Supp. 2d 467, 195 A.L.R. Fed. 641, 69 U.S.P.Q. 2d (BNA) 1337, 2003 U.S. Dist. LEXIS 22932, 2003 WL 22999270 (S.D.N.Y. 2003).

Opinion

Opinion

BATTS, District Judge.

Before the Court is a Motion for a Preliminary Injunction by Plaintiff 1-800 Contacts (“1-800 Contacts” or- “Plaintiff’) to enjoin Defendants from delivering to computer users competitive “pop-up” Internet advertisements, in violation of federal and state copyright, trademark, and unfair competition laws. For the reasons set forth herein, Plaintiffs motion is GRANTED in part.

*472 I. BACKGROUND

A. Procedural Background

On October 9, 2002, Plaintiff filed this action with ten claims for relief. 1 With its Complaint, Plaintiff also filed a Motion for Preliminary Injunction, 2 to enjoin Defendants from: 1.) Placing, or causing any other entity to place, advertisements of any kind on any copy of Plaintiffs website, without the express consent of thé Plaintiff; 2.) Altering or modifying, of causing any other entity to alter or modify, any copy of Plaintiffs website in any way, including its appearance or how it is displayed; 3.) Infringing, or causing any other entity to infringe, Plaintiffs copyright; 4.) Making any designations of origin, descriptions, representations or suggestions that Plaintiff is the source, sponsor or in any way affiliated with Defendant Vision Direct’s website and services; 5.) Acting in any manner that causes Defendants’ products, services, websites, or advertisements to be in any way associated with Plaintiffs products, services, or website, ipcluding, but not limited to, any means of marketing advertising, or agreements with third parties likely to induce the belief that Defendants or Defendants’ websites, advertisements, products or services are in any way associated connected, or affiliated with, or licensed or authorized by Plaintiff; 6.) Infringing, or causing any other entity tp infringe, Plaintiffs trademarks and/or service marks rights; 7.) Unfairly designating the origin of Defendant Vision Direct’s website and services, or otherwise creating confusion regarding the origin of Defendant Vision Direct’s website and services; 8.) Unfairly competing with Plaintiff in any manner; 9.) Acting, or causing another entity to act, in any manner likely to dilute; tarnish, or blur the distinctiveness of the 1-800 CONTACTS marks; 10.) Causing a likelihood of confusion or injuries to Plaintiffs business reputation; 11.) Interfering with Plaintiffs reasonable business expectations. (Plaintiffs Proposed Order, filed October 9, 2002.)

On October 22, 2002, the Court held a conference call with the parties,' during which the parties agreed to cease the allegedly offending “pbp-up” advertising conduct until a preliminary injunction hearing. The parties agreed to allow Defendants sufficient time to conduct a consumer survey to rebut Plaintiffs survey evidence and scheduled a Preliminary Injunction hearing for February 7, 2003. 3

*473 On January 7, 2003, the Court ordered, by memo-endorsement of a letter request from Defendant WhenU.com (“WhenU” or “WhenU.com”), an adjournment of the Preliminary Injunction Hearing in this case to March 18, 2003. (Memo-Endorsement of Def. Jan. 6, 2003.) On January 31, 2003, Defendant WhenU.com filed its Memorandum of Law in Opposition to Plaintiffs Motion for a Preliminary Injunction (“WhenU.com Jan. 31, 2003”), 4 and Defendant Vision Direct filed its Memorandum in Opposition as well (“Vision Direct Jan. 31, 2003”). 5

On February 28, 2003, Plaintiff filed its Memorandum of Law in Reply to Defendant WhenU.com’s Opposition and its Memorandum of Law in Reply to Defendant Vision Direct’s Opposition (“PI. Feb. 28, 2003”).

Evidentiary hearings and argument were heard on March 18, March 19, April 8, and April 10, 2003. The Court incorporates herein the record of the evidentiary hearings and argument. Relevant hearing testimony and arguments are set forth in more detail below. 6

B. Factual Background

The undisputed facts in this section, with the legal conclusions and facts found in the Discussion section, infra, constitute the Court’s Findings of Fact and Conclusions of Law for purposes of Rule 52(a).

1. The Parties

Plaintiff 1-800 Contacts, Inc. (“1-800 Contacts”) sells and markets replacement contact lenses and related products through its website, located at http://www.1800Contacts.com, and also through telephone and mail orders. (Declaration of Jason Mathison (“Mathison Dec.”) ¶ 4; Plaintiffs October 9, 2002 Memorandum (“PI. Oct. 9, 2002”) at 3). Plaintiff has registered the ‘WE DELIVER, YOU SAVE” mark with the United States Patent and Trademark Office (“USPTO”), and has filed for registration of the mark “1-800 CONTACTS” and the 1-800 CONTACTS logo. (Complaint (“Compl.”) Ex A-C; Pl. Oct. 9, 2002 at 4.) Plaintiff has expended considerable sums on marketing these marks; in 2001, 1-800 Contacts spent $27,118,000 on marketing. (Mathison Dec. ¶ 7; Pl. Oct. 9, 2002 at 4.) Since the founding of 1-800 Contacts in 1995, Plaintiff has continuously used its service marks to promote and identify its services in the United States and abroad. (Mathison Dec. ¶ 6) Plaintiffs sales have grown from $3,600,000 in 1995 to $169,000,000 in 2001. (Mathison Decl. ¶ 8; Pl. Oct. 9, 2002 at 3.)

Plaintiff is the sole owner of the 1-800Contacts.com website. (Mathison Dec. ¶ 5; Pl. Oct. 9, 2002 at 4.) Plaintiff registered its copyright to the l-800Contacts.com website with the Copyright Office of the United States Library of Congress on October 2, 2000. 7 (Compl., Exh. D.) Over 221,800 people visited Plaintiffs *474 website in the month of September, 2002. 8 (Mathison Dec. ¶ 9; Pl. Oct. 9, 2002 at 4.)

Defendant Vision Direct, Inc. sells and markets replacement contact lenses and related products through its website, located at http://www.visiondirect.com. (Mummery Dec. ¶ 2; Vision Direct Jan. 31, 2002 at 2.) Vision Direct and 1-800 Contacts are competitors. Id. Defendant Vision Direct has registered and maintains a registration in the domain name 9 www.www1800Con-tacts.com. (Barrier Aff. Ex. A.)

Defendant WhenU.com is a software company that has developed and distributes, among other products, the “Save-Now” program, a proprietary software application. (Tr. at 34; Naider Aff. ¶ 22.)

2. The Internet and the Windows Operating Environment

Since Plaintiffs claims arise from alleged anti-competitive and infringing action by Defendants through the Defendants’ use of proprietary software that is distributed to computer users, a brief explanation of the Internet, the computer operating environment and associated terms and definitions is helpful. These facts are not in dispute.

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309 F. Supp. 2d 467, 195 A.L.R. Fed. 641, 69 U.S.P.Q. 2d (BNA) 1337, 2003 U.S. Dist. LEXIS 22932, 2003 WL 22999270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/1-800-contacts-inc-v-whenu-com-nysd-2003.