Alta Vista Corp., Ltd. v. Digital Equipment Corp.

44 F. Supp. 2d 72, 1998 WL 1029216
CourtDistrict Court, D. Massachusetts
DecidedOctober 16, 1998
DocketCivil Action 98-11468-NG
StatusPublished
Cited by7 cases

This text of 44 F. Supp. 2d 72 (Alta Vista Corp., Ltd. v. Digital Equipment Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alta Vista Corp., Ltd. v. Digital Equipment Corp., 44 F. Supp. 2d 72, 1998 WL 1029216 (D. Mass. 1998).

Opinion

MEMORANDUM AND ORDER

GERTNER, District Judge.

I. INTRODUCTION

This case involves a dispute over the use of nearly identical tráde and service-marks. 1 The Plaintiff, Alta Vista Corporation, Ltd. (“AVC”), is the senior user of the servicemark “Alta Vista” in New York City and Los Angeles, where it started to conduct business in 1993. The Defendant, Digital Equipment Corporation (“Digital”), introduced a nearly identical mark, “Alta-Vista,” across the country in 1995. Digital is therefore the junior user of this closely related family of marks in New York, City and Los Angeles. To prevent confusion to its clients and business contacts, AVC seeks a preliminary injunction to bar Digital from using the name “AltaVista,” in the two areas where AVC is the senior user. For the reasons stated below, AVC’s motion is DENIED.

*74 II. BACKGROUND

The facts in this case are largely uncontested. AVC is a small (three full-time employees), London-based company that “manages) markets, sells and exploits intellectual property assets,” such as books, films, and television shows. In effect, it is a specialized literary services agency, providing labor-intensive representation and management to its clients, mostly writers seeking to publish books, or produce films or television shows.

AVC began using the servicemark “ALTA VISTA” in New York City and Los Angeles in 1993, but did not seek to have a more general presence in the United States until 1997. In January of that year it took out its first advertisement in an American publication; in April it created a Web page, 2 giving Americans an easy way to find out about their services; and in September of that year its trademark on “Alta Vista” was issued. 3

Digital is a large corporation, involved in a variety of “high tech” and media enterprises. In December 1995, it launched its AltaVista Internet search engine. 4 Through it, Digital provides one of the leading Internet search services. 5

Digital was not aware of AVC or its use of the name “Alta Vista” when naming its search engine. It chose the name in a brainstorming session because it means “high view” in Spanish, which seemed apt for a Web site that would offer a view of the entire Web. Nonetheless, it has been using a name almost identical to AVC’s name for over two and a half years.

After launching the search engine, Digital introduced an array of Internet-related computer software, starting in May 1996. It markets the software under numerous “AltaVista” names, including AltaVista Directory, AltaVista Mail, AltaVista Forum, and AltaVista Firewall.

More recently, Digital announced an agreement with Amazon.com, one of the leading booksellers on the Web. According to the agreement, Amazon.com is prominently advertised on the AltaVista site, and- a search done on the AltaVista search engine can also be done with the click of a mouse button in Amazon.com’s database. Furthermore, Digital gets a commission of 2.5% of the purchase price of every book bought on Amazon.com prompted by an initial search on the AltaVista search engine.

In January 1998, Digital announced an agreement with'- OneZeró Media, Inc. (“OZM”) to create a partnership between the AltaVista search engine and OZM’s national TV series, Wild Wild Web.’ According to Digital’s press release, “the companies will co-produce an entertainment area on AltaVista, based on programming from the Wild Wild Web.’ AltaVista users will gain access to a wide variety of content about pop culture, music, film, sports, entertainment news and events, TV, comedy, radio, games and literature.”

AVC contends that by making these agreements with OZM, Amazon.com, and *75 others, Digital has “expanded its AltaVista business into a full-fledged media company, which develops and promotes many forms of intellectual property.” In so doing, it brings its trademark into competition with AVC’s senior mark in the areas of New York City and Los Angeles. The result, AVC claims, is that it is suffering “reverse confusion,” a condition in which a less well-known senior user’s goodwill and identity are overwhelmed by a more well-known junior user’s use of a confusingly similar mark. Claiming that this reverse confusion results from a violation of Section 43(a) of the Lanham Act, 15 Ú.S.C. § 1125(a), AVC seeks a preliminary injunction enjoining Digital from using the disputed mark in New York City and Los Angeles.

Digital responds that there is no substantial likelihood of confusion between the marks of the two parties. It acknowledges that the marks are similar, but claims that they make different impressions in their respective commercial contexts. More importantly, it claims that it is not “a full fledged media company,” and that it has not expanded into “media development, publicity and promotion servicés.” In addition, it claims that any confusion AVC has to deal with is de minimus, while the cost of changing the name of Digital’s Al-taVista search engine would be very high, significantly higher than even the proportional cost to the much smaller AVC of clarifying any confusion that may arise from the similar marks.

III. ANALYSIS

A. Preliminary Injunction Standard

Having recently addressed this topic in Digital Equipment Corp. v. AltaVista Technology, Inc., 960 F.Supp. 456, 472 (D.Mass.1997), I quote myself at length (internal square brackets omitted):

The granting of a preliminary injunction in actions for trademark infringement under § 43(a) of the Lanham Act requires a showing that: (1) the plaintiff may suffer irreparable injury absent an injunction; (2) equitable balancing weighs in favor of plaintiff when measuring the harm the injunction would do to defendants; (3) plaintiff is likely to succeed on the merits; and (4) public interest favors granting the preliminary injunction. See, e.g., Camel Hair and Cashmere Institute of America, Inc. v. Associated Dry Goods Corp., 799 F.2d 6, 12 (1st Cir.1986).
In the context of trademark infringement, if [AVC] can show it is likely to prevail on the merits of its infringement claims ..., two consequences follow. First, there is a presumption that [AVC] will suffer irreparable injury absent an injunction. See id. at 14-15. Second, the preliminary injunction will be held to be beneficial, and in the public interest, “given the societal value of full disclosure and fair competition, together with the policy of the law to provide at least minimal protection to established trade names.... ” Hypertherm, Inc. v. Precision Products, Inc., 832 F.2d 697, 700 (1st Cir.1987);

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Bluebook (online)
44 F. Supp. 2d 72, 1998 WL 1029216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alta-vista-corp-ltd-v-digital-equipment-corp-mad-1998.