Coca-Cola Co. v. Purdy

382 F.3d 774, 72 U.S.P.Q. 2d (BNA) 1305, 2004 U.S. App. LEXIS 18414, 2004 WL 1933351
CourtCourt of Appeals for the Eighth Circuit
DecidedSeptember 1, 2004
Docket02-2894, 03-1795, 03-1929
StatusPublished
Cited by88 cases

This text of 382 F.3d 774 (Coca-Cola Co. v. Purdy) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coca-Cola Co. v. Purdy, 382 F.3d 774, 72 U.S.P.Q. 2d (BNA) 1305, 2004 U.S. App. LEXIS 18414, 2004 WL 1933351 (8th Cir. 2004).

Opinion

MURPHY, Circuit Judge.

This case was brought under the Anticy-bersquatting Consumer Protection Act by the Washington Post Company and its wholly owned subsidiary Washington-post.Newsweek Interactive Company, LLC (the Post entities), the Coca-Cola Company, McDonald’s Corporation, and PepsiCo, Inc. to stop William S. Purdy 1 from appropriating Internet domain names 2 that incorporate and are confusingly similar to their trademarks and ser-vicemarks. The district court 3 granted preliminary injunctive relief enjoining defendants from registering or using certain domain names and ordering them transferred to their proper owners. Purdy was later found in contempt and fined for violating the injunctions. He appeals from the preliminary injunctions and the contempt orders.

I.

Both the common law and Congress have provided protection to the holders of recognized trademarks to prevent others from appropriating or copying them and taking advantage of the owner’s good will for their own benefit. See 1 McCarthy on Trademarks and Unfair Competition § 2:31 (4th ed.) (citing Weinstock, Lubin & Co. v. Marks, 109 Cal. 529, 42 P. 142 (1895); Hugo Stein Cloak Co. v. S.B. Stein & Son, 58 Ohio App. 377, 16 N.E.2d 609 (1937)). Congress enacted the Lanham Act over fifty years ago to protect the value of trademarks by encouraging their registration, see 3 McCarthy § 19:2, and to provide a federal cause of action to prevent their misappropriation, see 15 U.S.C. § 1125. One legislative purpose of that act was to ensure that “where the owner of a trade-mark has spent energy, time, and money in presenting to the public the *778 product, he is protected in his investment from its misappropriation by pirates and cheats.” S.Rep. No. 1333, at *3 (1946).

The development of the Internet created new areas of concern, and in 1999 Congress passed the Anticybersquatting Consumer Protection Act (ACPA) in order to prevent misappropriation of trademarks by stopping conduct known as “cybers-quatting.” See ACPA, Pub.L. No. 106— 113, 113 Stat. 1501 (1999) (codified at 15 U.S.C. § 1125(d)). In the ACPA Congress added section 43(d) to the Lanham Act and defined cybersquatting as registering or using with a bad faith intent to profit a domain name that is confusingly similar to a registered or unregistered mark or dilu-tive of a famous mark. See 15 U.S.C. § 1125(d). See also 4 McCarthy § 25:78. A number of cybersquatting problems prompted Congressional action. There was concern about individuals registering domain names that are similar to famous marks for the purpose of profiting by selling them to the legitimate owners of the marks. See Harrods Ltd. v. Sixty Internet Domain Names, 302 F.3d 214, 238 (4th Cir.2002). Congress was also aware of individuals attaching obscene or pornographic material to an infringing domain name in order to tarnish the mark. S.Rep. No. 106-140, at *6 (Aug. 5, 1999). Others attempted to divert unsuspecting consumers to' their sites in order to engage in unfair competition. Id. Conduct of' this sort has been described as the “Internet version of a land grab.” Interstellar Starship Servs., Ltd. v. Epix, Inc., 304 F.3d 936, 946 (9th Cir.2002).

The legislative history of the ACPA includes findings that cybersquatters were engaging in consumer fraud and creating public confusion as to the true source or sponsorship of goods and services in a way that would impair electronic commerce, deprive trademark owners of substantial revenues and consumer goodwill, and place overwhelming burdens on trademark owners in protecting their valuable intellectual property. S.Rep. No. 106-140, at *2 (findings). The Senate report included concerns about misleading users of the Internet: “[I]f someone is operating a web site under another brand owner’s trademark, such as a site called ‘cocacola.com’ or ‘lev-is.com,’ consumers bear a significant risk of being deceived and defrauded, or at a minimum, confused.” Id. at *5.

Congress enacted the ACPA to provide legal clarity for- trademark owners by prohibiting bad faith and abusive registration of distinctive marks as Internet domain names with the intent to profit from their goodwill. Id. at *4. The ACPA was intended to balance the interests of trademark owners against the interests of those who would make fair uses of a mark online, such as for comment, criticism, parody, and news reporting. Id. at *8. Nevertheless, the use of a domain name “in connection with a site that makes a noncommercial or fair use of the mark does not necessarily mean that the domain name registrant lacked bad faith.” Id. at *8-9. See also H.R.Rep. No. 106-412, at *11 (1999). To recognize such an exemption would “eviscerate the protections of the bill by suggesting a blueprint for cy-bersquatters who would simply create criticism sites in order to immunize themselves from liability despite their bad-faith intentions.” S.Rep. No. 106-140, at *9. For these reasons Congress gave courts the charge to “weigh the facts of each case and make a determination based on those facts whether or not the defendant registered, trafficked in, or used the domain name with bad-faith intent to profit from the goodwill of the mark of another.” Id. at *10.

*779 II.

In early July 2002 Purdy began registering Internet domain names which incorporated distinctive, famous, and protected marks owned by the plaintiffs. The domain names he registered included drinkcoke.org, mycoca-cola.com, mymcdo-nalds.com, mypepsi.org, and my-washing-tonpost.com. The latter name was almost exactly identical to one which the Wash-ington Post had used to operate an interactive online news service (mywashington-post.com), the only distinguishing detail being Purdy’s addition of a hyphen.

Purdy typically linked the domain names to the website abortionismurder.com which contains antiabortion commentary and graphic images of aborted and dismembered fetuses. It also contains multiple “What Can I Do?” links to a website where a visitor can purchase hats, shirts, neckties, and license plates with antiabortion themes and make donations using a credit card or bank account number. The content available at abortionismurder.com contained no references to plaintiffs, their products, or their alleged positions on abortion.

For several days in early July 2002 Pur-dy linked the domain names my-washing-tonpost.com and drinkcoke.org to a website displaying what appeared to be a front page originating from washingtonpost.com. The page with this format featured the headline “The Washington Post proclaims ‘Abortion is Murder’ ” and contained graphic images of aborted fetuses next to Coca-Cola’s trademark and the words “Things Don’t Always Go Better With Coke. Abortion is

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382 F.3d 774, 72 U.S.P.Q. 2d (BNA) 1305, 2004 U.S. App. LEXIS 18414, 2004 WL 1933351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coca-cola-co-v-purdy-ca8-2004.