Green Bullion Financial Services, LLC v. Money4gold Holdings, Inc.

639 F. Supp. 2d 1356, 2009 U.S. Dist. LEXIS 59140, 2009 WL 1758728
CourtDistrict Court, S.D. Florida
DecidedJune 22, 2009
DocketCase 09-60027-CIV
StatusPublished
Cited by3 cases

This text of 639 F. Supp. 2d 1356 (Green Bullion Financial Services, LLC v. Money4gold Holdings, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green Bullion Financial Services, LLC v. Money4gold Holdings, Inc., 639 F. Supp. 2d 1356, 2009 U.S. Dist. LEXIS 59140, 2009 WL 1758728 (S.D. Fla. 2009).

Opinion

ORDER

WILLIAM J. ZLOCH, District Judge.

THIS MATTER is before the Court upon Plaintiff Green Bullion Financial Services, LLC’s Motion For Preliminary Injunction (DE 8). An evidentiary hearing was held before the undersigned on Plaintiffs aforementioned Motion on April 21, 22, and 28, and May 11, 2009. The Court has carefully reviewed said Motion and the entire court file and is otherwise fully advised in the premises.

Plaintiff is a successful company operating under the name Cash4Gold. Its business model consists of customers sending their unwanted jewelry or other precious metals to Plaintiff in exchange for payment of a fraction of the value of the jewelry or metal. The metal is refined and disposed of for a profit. Incidentally, gold is hovering at close to a thousand dollars an ounce at the time of this Order, and much of Plaintiffs success is the product of good timing, hard work, and effective advertising. In fact, it has spent tens of millions of dollars on building the Cash4Gold brand with a massive campaign of effective and sometimes humorous advertising.

Defendant Money4Gold is in the same business as Plaintiff. Its moniker is Dollars4Gold. In order to capture part of Plaintiffs overwhelming market share, Defendant has also engaged in a large advertising campaign, mostly waged on the internet. Part of this campaign consisted of Defendant contracting with advertising companies to post banners and logos on Google and other websites that attracted customers to Defendant’s website.

Many of these banners and logos took Plaintiffs advertising efforts and brand and attributed them to Defendant. For example, one advertisement on Google placed on behalf of Defendant asked whether consumers had seen Defendant’s Super Bowl commercial. Defendant, however, did not run an ad during the Super Bowl, but Plaintiff did. Other websites placed by Defendant’s sub-affiliates directly stole Plaintiffs operating name and logo. Clicking on these sites would direct consumers to Defendant’s website.

A basic sense of fairness makes one recoil at Defendant’s actions. However, “that’s not right” is not a legal principal. Instead, intellectual property law is concerned with nuanced formulas and tests that determine whether Plaintiff is protected from Defendant’s manner of competition. The Court is bound by these tests and must apply them in this action. In walking through the analysis and applying the facts adduced at the hearing to the law, the Court finds that Plaintiff has failed to meet its burden for a preliminary injunction.

I.

The evidentiary hearing established the following facts. Plaintiff, doing business as Cash4Gold, operates its successful direct-buy precious metals purchasing business. Plaintiff, especially its Chief Executive Officer Jeff Aronson, has worked very hard to build the company up from scratch and is now a leader in the field of direct-buy precious metal refining. In the run-up to its present market status, Plaintiff began advertising on cable television stations in May of 2007. Its commercials are shown on multiple stations at all hours of the day. Plaintiff also has a weekly advertisement on the Howard Stern radio program, a scripted advertisement spoken by the host and airing since late 2007. It also advertises on other radio programs. In early- to mid-2008, Plaintiff began sponsoring a NASCAR driver named Brandon *1360 Knupp by emblazoning its logo and phone number on several prominent locations of his car. Finally, at some point Defendant became a corporate sponsor for the Washington Wizards professional basketball team. Defendant’s logo is included in a set of corporate sponsors. PI. Ex. 7.

In addition to these more traditional efforts, Plaintiff also uses an advertising method known as affiliate advertising, which works in this way: the seller of a product or service, known as the advertiser, hires a company known as a network affiliate to place advertisements on internet websites. The actual advertisements appear as banners or logos on websites that are not necessarily connected in any way with either the advertiser or the network affiliate. The following example illustrates how the process works: an internet user might go to the New York Times website and notice a banner at the top advertising the widgets sold by the advertiser’s company. If the user clicks on the banner, he is redirected, in the examples discussed at the evidentiary hearing, to a webpage acting simply as a more robust advertisement. This webpage might have catch phrases and mottos and display a place to click to order. Clicking here redirects the user to the website of the advertiser, where he can engage its services.

The electronic banner advertisements and logos are created and placed on websites such as the New York Times by people employed by the network affiliate, known as sub-affiliates. The raw electronic material for the advertisements are drawn from a bank hosted by the network affiliate that contains content, sometimes called “creatives,” pre-approved by the advertiser for use in this way. The creatives include names, words, mottos, pictures, logos, designs, trademarks, and the like that the advertiser uses in its trade even apart from affiliate advertising.

Sub-affiliates also place advertisements on Google’s search engine. These take the form of links appearing at the top or right side of the list of retrieved webpages after a search query is run. The advertisement in this method consists only of a line or two of text that advertises the service or product and displays the website and includes a link to the same.

Many network affiliates, including the one used by Plaintiff, do not disclose the names of their sub-affiliates. Thus, advertisers deal only with the network affiliate and have no dealings with sub-affiliates. Based on the manner in which the banner advertisements are put together behind closed doors without receiving approval for their final form from either the network affiliate or the advertiser, and the method of placing them on webpages, sub-affiliates sometimes create and place non-approved advertisements. This includes both banner advertisements and the sponsored links on Google. Advertisers have both the duty and incentive to contact the network affiliate if they become aware of advertisements containing non-approved or possibly infringing content.

By April of 2008, Plaintiff had obtained a fair amount of press coverage. Timing is everything in business and life; Plaintiffs emergence into the unwanted-jewelry buying market coincided serendipitously with the downturn in the economy and the rising price of gold. By late 2008, and continuing to this day, Plaintiff has become widely known. In fact, Plaintiff was the only company of its kind to advertise in a nationally broadcast commercial in this year’s Super Bowl, an achievement recognized as stunning to anyone familiar with the companies who advertise year after year in that venue.

Defendant Money4Gold Holdings, Inc. operates in the same business field as Plaintiff and provides the same services to *1361 its customers. It advertises by using the same network affiliate model as Plaintiff. At issue in this case are sponsored links on Google and several webpages that Plaintiff claims infringe on its federally protected trademarks and copyrights.

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Cite This Page — Counsel Stack

Bluebook (online)
639 F. Supp. 2d 1356, 2009 U.S. Dist. LEXIS 59140, 2009 WL 1758728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-bullion-financial-services-llc-v-money4gold-holdings-inc-flsd-2009.