Diners Club International Limited v. privatedinersclubportal.co.uk

CourtDistrict Court, D. Arizona
DecidedFebruary 24, 2025
Docket2:24-cv-01559
StatusUnknown

This text of Diners Club International Limited v. privatedinersclubportal.co.uk (Diners Club International Limited v. privatedinersclubportal.co.uk) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diners Club International Limited v. privatedinersclubportal.co.uk, (D. Ariz. 2025).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA 8

Diners Club International Limited, ) No. CV-24-01559-PHX-SPL ) 9 ) 10 Plaintiff, ) ORDER vs. ) ) 11 ) privatedinersclubportal.co.uk, ) 12 ) 13 Defendant. ) ) 14 )

15 Before the Court is Plaintiff’s Motion for Default Judgment (Doc. 13). For the 16 following reasons, the Court concludes that the Motion must be denied. 17 I. BACKGROUND 18 On June 26, 2024, Plaintiff Diners Club International Limited (“Plaintiff” or “Diners 19 Club”) filed a Complaint against Defendant, infringing domain name 20 “privatedinersclubportal.co.uk” (“Defendant”). (Doc. 1). The action was brought under the 21 in rem provisions of the Anticybersquatting1 Consumer Protection Act, 15 U.S.C. § 22 1125(d) (the “ACPA”), and the action arises out of alleged violations of the ACPA and the 23 Lanham Act. (Doc. 1 ¶ 2). 24 Diners Club is a banking and payment services company owned through 25 subsidiaries of Discover Financial Services. (Doc. 13 at 2–3). It provides financial services

26 1 “Cybersquatting entails ‘registering a domain name associated with a protected 27 trademark either to ransom the domain name to the mark holder or to divert business from the mark holder.’” Rigsby v. GoDaddy Inc., 59 F.4th 998, 1006 (9th Cir. 2023) (quoting 28 Petroliam Nasional Berhad v. GoDaddy.com, Inc., 737 F.3d 546, 549 n.3 (9th Cir. 2013)). 1 to individuals, businesses, and corporations “through channels such as credit and charge 2 card services, and related dining and entertainment rewards.” (Id. at 3). Plaintiff owns 3 various Diners Club trademarks in the U.S. and U.K. (Doc. 1-1 at 2). “Plaintiff has used its 4 distinctive Diners Club Marks and acquired significant goodwill though their use since the 5 1960’s.” (Id. ¶ 17). 6 On November 26, 2021, a website domain was registered through the registrar 7 GoDaddy.com, LLC under the URL “privatedinersclubportal.co.uk” (the “Infringing 8 Domain Name”). (Id. ¶ 21). Multiple cease-and-desist letters were sent to Lavang 9 Sheffield, the registrant who operates the website associated with the Infringing Domain 10 Name “in connection with personal chef and catering services.” (Id. ¶¶ 20–24). Plaintiff 11 alleges that the Infringing Domain Name is confusingly similar to its distinctive Diners 12 Club mark, and that if “an Internet user looking for Plaintiff’s website mistakenly enters 13 the Infringing Domain Name as a URL . . . and reaches the Infringing Website,” if that user 14 is a prospective customer, “Plaintiff has lost the opportunity to transact business with that 15 user.” (Id. ¶ 30). Plaintiff alleges that “Lavang Sheffield’s registration and use of the 16 Infringing Domain Name is primarily intended to trade off the goodwill associated with 17 Plaintiff’s Diners Club Marks,” and that the “diversion of users from Plaintiff’s website 18 has harmed and continues to harm Plaintiff’s ability to generate business and retain 19 customers by misleading internet users attempting to navigate to Plaintiff’s website.” (Id. 20 ¶ 40). Accordingly, Plaintiff sought injunctive relief ordering GoDaddy.com to transfer the 21 Domain Name to Plaintiff. (Id. ¶¶ 45–46). 22 On July 26, 2024, Plaintiff’s Motion for Service by Publication was granted. (Doc. 23 9). Plaintiff served Defendant by publication in The Guardian and also mailed hard copies 24 of the Court’s July 26 Order to Lavang Sheffield via FedEx. (Doc. 13 at 5). Defendant’s 25 response deadline was October 5, 2024, but the date passed without a response ever being 26 filed; accordingly, on November 13, 2024, the Clerk of Court entered default against 27 Defendant. (Id.; Doc. 12). 28 Plaintiff contends that “on or around September 6, 2024, the registrant of the 1 Infringing Domain Name, in an attempt to evade the jurisdiction of this Court, changed the 2 registrar from GoDaddy Inc. (“GoDaddy” or “Initial Registrar”) to eUKhost Ltd. 3 (“eUKhost” or “Current Registrar”), a corporation located in the United Kingdom. (Doc. 4 13 at 5–6). However, Defendant has not appeared at any point in this case. 5 II. DISCUSSION a. Subject Matter Jurisdiction, Personal Jurisdiction, and Service of 6 Process 7 When default judgment is sought against a non-appearing party, a court has “an 8 affirmative duty to look into its jurisdiction over both the subject matter and the parties.” 9 In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999) (“To avoid entering a default judgment that 10 can later be successfully attacked as void, a court should determine whether it has the 11 power, i.e., the jurisdiction, to enter judgment in the first place.”). A court has a similar 12 duty with respect to service of process. See Fishman v. AIG Ins. Co., 2007 WL 4248867, 13 at *3 (D. Ariz. Nov. 30, 2007) (“Because defendant has not been properly served, the court 14 lacks jurisdiction to consider plaintiff’s motions for default judgment.”). These 15 considerations are “critical because ‘[w]ithout a proper basis for jurisdiction, or in the 16 absence of proper service of process, the district court has no power to render any judgment 17 against the defendant’s person or property unless the defendant has consented to 18 jurisdiction or waived the lack of process.’” Id. (citing S.E.C. v. Ross, 504 F.3d 1130, 1138– 19 39 (9th Cir. 2007)). 20 The Court has subject matter jurisdiction because the only claim at issue was 21 brought pursuant to 15 U.S.C. § 1125(d) (the ACPA), and the Court therefore has federal 22 question jurisdiction over the matter. (Doc. 6 at 6); 28 U.S.C. § 1331. The ACPA was 23 passed by Congress in 1999 as an amendment to the Lanham Act, and it was primarily 24 “designed to reach activity that might otherwise fall outside the scope of the Lanham Act, 25 i.e., the bad faith registration of domain names with intent to profit from the goodwill 26 associated with the trademarks of another,” also known as “cybersquatting.” Cazorla v. 27 Hughes, 2014 U.S. Dist. LEXIS 188404, at *23 (C.D. Cal. Apr. 7, 2014) (citing S. Rep. 28 1 No. 106-140, at 4 (1999)). The statutory text of the ACPA provides that a trademark owner 2 may file an in rem civil action against a domain name in the judicial district in which the domain name registrar, domain 3 name registry, or other domain name authority that registered or assigned the domain name is located if-- 4 (i) the domain name violates any right of the owner of a 5 mark registered in the Patent and Trademark Office, or protected under subsection (a) or (c); and 6 (ii) the court finds that the owner-- 7 (I) is not able to obtain in personam jurisdiction 8 over a person who would have been a defendant in a civil action under paragraph (1); or 9 (II) through due diligence was not able to find a 10 person who would have been a defendant in a civil action under paragraph (1) by-- 11 (aa) sending a notice of the alleged 12 violation and intent to proceed under this paragraph to the registrant of the domain 13 name at the postal and e-mail address provided by the registrant to the registrar; 14 and 15 (bb) publishing notice of the action as the court may direct promptly after filing the 16 action. 17 (B) The actions under subparagraph (A)(ii) shall constitute service of process.

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