Ascentive, LLC v. Opinion Corp.

842 F. Supp. 2d 450, 107 U.S.P.Q. 2d (BNA) 1036, 2011 WL 6181452, 2011 U.S. Dist. LEXIS 143081
CourtDistrict Court, E.D. New York
DecidedDecember 13, 2011
DocketNo. 10 Civ. 4433(ILG)(SMG)
StatusPublished
Cited by22 cases

This text of 842 F. Supp. 2d 450 (Ascentive, LLC v. Opinion Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ascentive, LLC v. Opinion Corp., 842 F. Supp. 2d 450, 107 U.S.P.Q. 2d (BNA) 1036, 2011 WL 6181452, 2011 U.S. Dist. LEXIS 143081 (E.D.N.Y. 2011).

Opinion

OPINION AND ORDER

GLASSER, Senior District Judge:

This case, arising under the Lanham Act and the Racketeer Influenced and Corrupt Organizations Act (“RICO”), exemplifies a new species of litigation spawned by the age of the Internet. The plaintiffs in this case are Ascentive, LLC (“Ascentive”), an Internet software company, and Classic Brands, LLC (“Classic”) a mattress manufacturer. Ascentive and Classic (“plaintiffs”) bring suit against Opinion Corp. and three of its officers: (1) Michael Podolsky (“Podolsky”), Chief Executive Officer (“CEO”); (2) Alex Syrov, President; and (3) Joanna Clark Simpson, Marketing Director (collectively “defendants” or “PissedConsumer”), operators and owners of a consumer review website called www. PissedConsumer.com.

Plaintiffs move for a preliminary injunction pursuant to Rule 65 of the Federal Rules of Civil Procedure to disable Pissed-Consumer webpages containing negative reviews of their products at the following web addresses: Ascentive.PissedConsumer.com, FinallyFast. PissedConsumer.com; ' Dormia-mattress.PissedConsumer.com; and Dormia.PissedConsumer.com. Plaintiffs contend that PissedConsumer’s use of their registered trademarks in the [454]*454web addresses of these pages, in the pages’ metatags — the computer code associated with the pages — in the text pages themselves, and in connection with advertising for their competitors’ products on these pages constitutes trademark infringement, unfair competition, and false designation of origin under 15 U.S.C. §§ 1114(1), 1125(a). They also contend that PissedConsumer’s “Reputation Management Services,” which, for a fee, allows companies receiving negative consumer reviews to respond to the reviews and, under certain circumstances, alter the format in' which the reviews appear, effectively amounts to extortion, bribery and other fraudulent behavior prohibited by RICO.

For the following reasons, plaintiffs’ motions for a preliminary injunction are hereby DENIED.

I. BACKGROUND

Ascentive is a Pennsylvania-based corporation that develops and sells computer software products that enhance and protect personal computers by, among other things, improving system performance, increasing computer speed, and ensuring privacy. Complaint dated Sept. 24, 2010 (“Ascentive Compl.”) ¶ 15 (Dkt. No. 1). Ascentive owns a number of websites, including www.ascentive.com and www. finallyfast.com, where its computer software products are advertised, sold, and made available for download. Id. ¶21. Ascentive also has registered trademarks in the names (1) Ascentive; (2) Finally-Fast.com; (3) Finally Fast; and (4) FinallyFast. Id. ¶¶ 17-18. Approximately ninety-nine percent of Ascentive’s revenue comes from its online sales, id. at ¶ 23, the majority of which occur after consumers search for its product using a search engine like Google, Declaration of Adam Schran dated November 19, 2010 (“Schran Deck”) ¶ 6 (Dkt. No. 10-4).

Classic is a Maryland-based limited liability company that manufactures specialty sleep products, among which are Dormía brand mattresses. Classic Complaint dated Nov. 30, 2010 ¶¶ 4, 15 (“Classic Compl.”) (Dkt. No. 1). Classic owns a registered trademark in the name Dormía and operates a number of websites, including www.dormia.com and www. dormiamattress.com, on which it uses the mark to promote its sleep products and inform consumers of retail locations where they can purchase them. Id. ¶¶ 17, 19. Classic relies heavily on internet marketing for sales of its products both online and through conventional retail outlets. Declaration of Michael Zippelli dated Dec. 3, 2010 ¶ 10 (“Zippelli Deck”) (Dkt. No. 5-8).

PissedConsumer maintains a website, www.PissedConsumer.com, that invites consumers — both anonymous and identified' — to post reviews of businesses. Ascentive Compl. ¶¶ 25-26, 35. PissedConsumer advertises itself as a consumer review website that allows consumers to “make better choices” between competing products and gives consumers an “empowering” and “unbiased” view of companies and products. Id. ¶29. It makes no attempt to discern which complaints are legitimate and which complaints are false. Id. ¶ 34.

PissedConsumer creates webpages for each of the companies for which there are reviews in the form of “subdomains,” or domain names that are part of the larger PissedConsumer domain name at Pissed-Consumer.com. Id. ¶ 39.1 And PissedCon[455]*455sumer created such pages regarding plaintiffs at the following web addresses: (1) finallyfast.pissedconsunaer.com; (2) ascentive.pissedconsumer.com; (3) dormia-mattress.pissedconsumer.com; and (4) dormia.pissedconsumer.com. Ascentive Compl. ¶ 40; Classic Compl. ¶ 35.2 On these pages, PissedConsumer provides a description of each of the companies and their products, and — in conjunction with a Google advertising program — displays advertisements for third parties’ products and services, including those of plaintiffs’ competitors. Ascentive Compl. ¶¶ 45-47; Classic Compl. ¶ 41.3 The content of the advertisements change on a click-by-click basis' — i.e., the advertisements are different for every separate user that visits the website. Transcript of Hearing Before the Court on Dec. 6, 2010 (“Ascentive Tr.”) at 20.

Third-party users’ reviews of a company and its products appear at the bottom of each company’s PissedConsumer webpage. In the case of plaintiffs, their PissedConsumer pages contained a number of comments — some of which are “false ... really unhelpful and discouraging to [their] prospective customers ... [and] the public.” Ascentive Tr. at 22-23. While Ascentive alleges that PissedConsumer actually creates the purported third-party reviews on the Ascentive.PissedConsumer.com page, Ascentive Compl. ¶ 32, Classic merely states that “PissedConsumer encourages consumers to create negative postings on the PissedConsumer website .... ” Classic Compl. ¶ 27. PissedConsumer denies these allegations. While the fact that these comments exist at all is troubling enough to plaintiffs, more troubling to them is the fact that PissedConsumer’s webpages containing these comments appear very high on the results lists that search engines such as Google provide after a search engine user types in plaintiffs’ names or those of their products. Ascentive Tr. at 18; Transcript of Hearing before the Court on Jan. 1, 2011 at 30 (“Classic Tr.”).4

[456]*456Plaintiffs contend that PissedConsumer’s high ranking in search engine results lists is a product of PissedConsumer’s improper “search engine optimization” (“SEO”) practices — practices that make PissedConsumer’s content appear to be more relevant to a search engine’s algorithm than the site’s content actually is.5

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Bluebook (online)
842 F. Supp. 2d 450, 107 U.S.P.Q. 2d (BNA) 1036, 2011 WL 6181452, 2011 U.S. Dist. LEXIS 143081, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ascentive-llc-v-opinion-corp-nyed-2011.