America Online Latino v. AMERICAN ONLINE, INC.

250 F. Supp. 2d 351, 2003 U.S. Dist. LEXIS 3624, 2003 WL 1109442
CourtDistrict Court, S.D. New York
DecidedMarch 13, 2003
Docket02 Civ. 4796(LAK)
StatusPublished
Cited by5 cases

This text of 250 F. Supp. 2d 351 (America Online Latino v. AMERICAN ONLINE, INC.) 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
America Online Latino v. AMERICAN ONLINE, INC., 250 F. Supp. 2d 351, 2003 U.S. Dist. LEXIS 3624, 2003 WL 1109442 (S.D.N.Y. 2003).

Opinion

MEMORANDUM OPINION

KAPLAN, District Judge.

Mark Anthony Esposito, one of the plaintiffs in this case is the sole proprietor of a business which he refers to as America Online Latino (“AOL-Esposito”) and which he hoped would become an Internet service provider (“ISP”) to serve the U.S. Latino community. 1 AOL-Esposito should not be mistaken for America Online, Inc. (“AOL”), a defendant in this case and the world’s largest ISP. The matter is before the Court on motions by all of the defendants to dismiss plaintiffs’ 2 second amended complaint.

Facts

Defendants

The defendants in this case are AOL, Dotster, Inc. (“Dotster”), VeriSign, Inc. (‘VeriSign”), and Inktomi Corporation (“Inktomi”). AOL, as noted, is the world’s largest ISP and has been in business for at least ten years. 3 Dotster is an approved *354 domain name registrar. 4 VeriSign provides small business Internet services to individuals through, among other things, a web site division called Image Café, which was renamed Web Sites from VeriSign in October 2001. 5 It also offered a search engine placement service called SureList which, the Court infers, sought to place web sites of VeriSign clients on Internet search engines. 6 Inktomi provides database search engines which power search functions of such Internet companies as AOL and MSN. 7 It is alleged also to have had a contractual relationship with Veri-Sign. 8

The Controversy

The following statement of facts is taken from the second amended complaint, the allegations of which are deemed true for purposes of this motion.

Esposito Starts the Business

On March 15, 2000, Esposito registered the domain name <americaonlinelati-no.com> with Dotster with plans to create an ISP to serve the U.S. Latino community. 9 In May 2000, he began negotiations with AOL with a view to AOL acquiring the < americaonlinelatino.com > domain name, perhaps among other assets. 10 In June 2000, AOL registered <aolati-no.com> to prepare to enter the U.S. Latino market. 11 Nevertheless, negotiations continued between AOL and Esposito.

In July of that year, Esposito moved the web site to VeriSign’s Image Café division pursuant to a contract under which Veri-Sign agreed to maintain the web site in exchange for a fee. 12 At about the same time, Esposito subscribed to VeriSign’s SureList service which, the complaint alleges, promised “inclusion” in Inktomi’s search engine databases. 13 After making these arrangements, Esposito began developing the America Online Latino web site, which allegedly “reached the number one ranking on the Inktomi search engines ... when searching for LATINO.ISP.” 14

AOL’s WIPO Complaint

AOL apparently decided on a change in strategy in the summer of 2001. In August of that year, it filed a complaint against Esposito before the World Intellectual Property Organization (‘WIPO”), the gist of which seems to have been that Esposito’s <americaonlinelatino.com> domain name was confusingly similar to AOL’s America Online trademark and that Esposito had registered and was using his domain name in bad faith. 15

Esposito’s Problem With VeriSign

In October 2001, while the WIPO arbitration was pending, Esposito was “blocked” from accessing his Image Café account through the VeriSign web site. 16 While the complaint is not entirely clear, the Court infers that this meant that Es-posito could not access his web site content and that this temporarily shut down or *355 otherwise interfered with his operation. 17 At about the same time, searches on LookSmart, one of many search engines that used an Inktomi search engine, produced what the complaint describes as “an unusual search result display” 18 when queried for “Latino.isp,” although the complaint does not explain what was unusual about it. According to plaintiff, this unusual display was unique to searches on LookSmart which, plaintiff suggests, meant that Inktomi must have performed custom programming to achieve this result. 19 Moreover, plaintiff claims that clicking on the line of the LookSmart search result that listed <americaonlinela-tino.com> caused the user’s computer to “crash” and shut down, thus denying access to the web site. 20

These difficulties, plaintiff claims, were no accident. All occurred within a two month period, only a short time after AOL began the WIPO arbitration. “VeriSign, Inktomi, and Dotster had no reason to destroy Plaintiffs’ [sic] growing company.” 21 As AOL allegedly had a motive to do so, he alleges, it must have agreed with Dotster, Inktomi and VeriSign “to remove Plaintiffs’ [sic ] from the Internet.” 22

The WIPO Arbitration Decision

On November 20, 2001, a WIPO administrative panel determined that the domain names registered by Esposito, including <americaonlinelatino.com>, were confusingly similar to AOL trademarks; that AOL has intellectual property rights in the marks “AOL,” “American Online,” and “AOL.COM;” that plaintiff had no such rights; that AOL had proved “a degree of bad faith,” and that Esposito had shown no “legitimate business need for the domain names” he had registered. It directed transfer of the < americaonlinelatino.com > and certain other registered but inactive domain names to AOL. 23

Esposito was unhappy with the WIPO decision. On November 30, 2001, he purchased an index number from the New York County Clerk for the commencement of an action on behalf of himself, AOL-Esposito, and “Latino Community” against AOL Time Warner, Inc. (“AOLTW”), AOL’s parent company, the WIPO, and Paul Mason, the WIPO arbitrator who rendered the decision. “Promptly” after purchasing the index number, Esposito sent emails to AOL’s attorney, WIPO, and Dot-ster in which he notified them that he had filed the lawsuit and advised them of the court in which he had done so and the index number.

Related

Cite This Page — Counsel Stack

Bluebook (online)
250 F. Supp. 2d 351, 2003 U.S. Dist. LEXIS 3624, 2003 WL 1109442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/america-online-latino-v-american-online-inc-nysd-2003.