Fragrancenet.com, Inc. v. Fragrancex.com, Inc.

679 F. Supp. 2d 312
CourtDistrict Court, E.D. New York
DecidedJanuary 14, 2010
DocketNo. 06-CV-2225(JFB)(AKT)
StatusPublished
Cited by1 cases

This text of 679 F. Supp. 2d 312 (Fragrancenet.com, Inc. v. Fragrancex.com, Inc.) 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
Fragrancenet.com, Inc. v. Fragrancex.com, Inc., 679 F. Supp. 2d 312 (E.D.N.Y. 2010).

Opinion

MEMORANDUM AND ORDER

JOSEPH F. BIANCO, District Judge:

Plaintiff FragranceNet.com, Inc. (hereinafter “plaintiff’ or “FragranceNet”) brings this action against defendant FragranceX.com, Inc. (hereinafter “defendant” or “FragranceX”) alleging that defendant’s use of plaintiffs photographs and trademarks constitutes copyright infringement, trademark infringement, trademark dilution, violation of New York General Business Law § 133, state law dilution, injury to business reputation, common law unfair competition and misappropriation, passing off, and unjust enrichment.

Presently before the Court is defendant’s motion to dismiss the complaint under Rule 12(b)(6) of the Federal Rules of Civil Procedure. Specifically, defendant contends (1) that FragranceNet cannot bring a claim for copyright infringement against defendant because the photographic images of products on FragranceNet’s website are not entitled to copyright protection, and (2) FragranceNet cannot bring trademark-related claims against defendant because FragranceNet does not have enforceable rights to the trademarks “FRAGRANCENET” and “FRAGRAN-CENET.COM.” For the reasons set forth below, the Court concludes that plaintiff has asserted plausible claims under the copyright and trademark laws that survive a motion to dismiss. Accordingly, defendant’s motion is denied in its entirety.

I. Background

A. Facts

For purposes of this motion to dismiss, the Court has taken the facts described below from the plaintiffs third amended complaint (“Compl.”). These facts are not findings of fact by the Court but rather are assumed to be true for the purpose of deciding this motion and are construed in a light most favorable to plaintiffs, the non-moving parties. See LaFaro v. N.Y. Cardiothoracic Group, 570 F.3d 471, 475 (2d Cir.2009).

Plaintiff FragranceNet is a Delaware corporation with its principal place of business in Hauppauge, New York. (ComplA 6.) Since January 1997, plaintiff has owned and operated an online retail store that sells perfume and related prod[315]*315ucts at www.fragrancenet.com. (Id. ¶¶ 2, 11.) Defendant FragranceX is a New York corporation with its principal place of business in Long Island City, New York. (Id. ¶ 7.) Defendant sells perfume online at its website, www.fragranceX.com. (Id. ¶ 16.) The instant action arises out of defendant’s alleged misappropriation and use of more than nine-hundred copyrighted images from plaintiffs website and defendant’s alleged use of plaintiffs trademarks in defendant’s website’s metatags and in connection with Google’s AdWords program. (Id. ¶ 2.) Plaintiff seeks preliminary and permanent injunctive relief, as well as compensatory and punitive damages based on defendant’s actions. (Id. ¶ 4.)

According to the complaint, plaintiff has created hundreds of images of the products that it offers for sale, which are displayed on its website so that consumers can see visual images of the products. (Id. ¶¶ 12, 13.) The “background, arrangement, lighting, use of shadow, angle, and selection of products within each line to be included within the images are among the original elements contributing to the [i]m-ages.” (Id.) FragranceNet owns and has owned the copyrights to these images at all relevant times. (Id. ¶¶ 14-15.) The complaint alleges that defendant copied more than nine hundred of these copyrighted images from FragranceNet’s website, and posted them on its own website. (Id. ¶ 16.) Plaintiff attaches to its complaint screenshots depicting its own images side-by-side with copies of defendant’s allegedly infringing images. (Compl. Ex. B.) According to the complaint, FragranceNet informed defendant that defendant’s actions were infringing FragranceNet’s copyrights, and FragranceNet sent several cease-and-desist letters to defendant, but defendant did not discontinue its use of the images. (Compl.ft 17, 18.) Accordingly, plaintiffs complaint contains a cause of action for copyright infringement.

Plaintiff also owns the registrations for the trademarks FRAGRANCENET and FRAGRANCENET.COM, and plaintiff has used those marks in connection with its sale and marketing of perfume and related products online since January 27, 1997. (Id. ¶¶ 31, 34.) The marks were first registered by Telescents, Inc., a subsidiary of FragranceNet. These marks were assigned to plaintiff on May 28, 2009. (Def.’s Brief Ex. H.) The assignment included the “right to commence an action for past or future infringements.” (Id.)

The complaint alleges that plaintiff has marketed and promoted its services under these marks in national magazines, newspaper inserts, direct mailings, and other advertising venues. (Compilé 32, 35.) Plaintiff has sold millions of dollars of merchandise through its website, which accepts orders directly from customers. (Id. ¶ 33.) Over the past twelve years of operation, plaintiff has established a reputation for high-quality retail sales and customer services under its marks. (Id. ¶ 37.) There is customer recognition of these marks, and the marks have acquired a substantial level of goodwill. (Id.)

The complaint alleges that defendant inserted plaintiffs trademarks, “FRAGRANCENET” and “FRAGRANCENET.COM” into the metatags on defendant’s website. ' (Id. ¶ 21.) This action causes defendant’s website to appear as a search result when a user searches plaintiffs trademarks in an internet search engine. (Id.) The complaint also alleges that defendant has bid on, purchased, and used certain keywords, including plaintiffs trademarks, in Google’s AdWords program, with the knowledge that doing so would result in defendant’s links appearing as “Sponsored Links” when a [316]*316consumer types “FRAGRANCENET,” “FRAGRANCENET.COM” or other variations of FragranceNet’s mark into an internet keyword search on Google. (Id. ¶ 22.) The AdWords Program by Google allows advertisers to bid on particular keywords that apply to their websites. (Id.) Advertisers may specify whether keywords should be applied as a “broad match,” “phrase match,” “exact match,” or “negative match.” When an advertiser bids on a “broad match,” its link will appear when a search is conducted for that keyword, any of its plural forms, synonyms, or phrases similar to the word. (Id. ¶ 24.) When an advertiser bids on a “phrase match,” its link will appear when a user searches for a particular phrase, even if that phrase is used in combination with other words. (Id. ¶ 25.) An “exact match” will display the advertiser’s link only when the exact phrase bid on is searched on Google. (Id. ¶ 26.) A “negative match” bid allows an advertiser to ensure that its link does not appear when certain terms are searched. (Id. ¶27.) Sponsored Links appear on the top and right side of the search results screen. (Id. ¶ 22.)

According to the complaint, defendant bid on certain keywords, including plaintiffs trademarks, to cause its links to appear as “Sponsored Links” on Google when a search for “FRAGRANCENET” or other variations of plaintiffs mark are performed. (Id. ¶¶22, 28.) As a result, defendant’s links appear on the top and right side of the search results screen when searches for plaintiffs trademarks are performed. (Id.)

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Related

Fragrancenet. Com, Inc. v. Fragrancex. Com, Inc.
679 F. Supp. 2d 312 (E.D. New York, 2010)

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Bluebook (online)
679 F. Supp. 2d 312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fragrancenetcom-inc-v-fragrancexcom-inc-nyed-2010.