Her, Inc. v. Re/MAX First Choice, LLC

468 F. Supp. 2d 964, 2007 U.S. Dist. LEXIS 485, 2007 WL 43747
CourtDistrict Court, S.D. Ohio
DecidedJanuary 5, 2007
Docket1:06-cv-00492
StatusPublished
Cited by7 cases

This text of 468 F. Supp. 2d 964 (Her, Inc. v. Re/MAX First Choice, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Her, Inc. v. Re/MAX First Choice, LLC, 468 F. Supp. 2d 964, 2007 U.S. Dist. LEXIS 485, 2007 WL 43747 (S.D. Ohio 2007).

Opinion

OPINION AND ORDER

SARGUS, District Judge.

This matter is before the Court following a Hearing on the Plaintiffs’ Request for Preliminary Injunction. For the reasons that follow, the relief sought by Plaintiffs is granted.

I.

This case involves the intersection of the First Amendment’s protection of free speech and the statutory prohibition on the misleading use of trademarks and trade-names. Because freedom of speech is an essential right in a free society, this opinion first addresses the interplay of First Amendment rights with the regulation of intellectual property rights.

The Lanham Act, 15 U.S.C. § 1125, enacted in 1946 and addressed in more detail below, prohibits commercial use of trademarks and tradenames likely to cause confusion as to the source of a product or service. The Lanham Act has never been extended to “ ‘quash an unauthorized use of the mark by another who is communicating ideas or expressing points of view.’ ” Mattel, Inc. v. MCA Records, Inc., 296 F.3d 894, 900 (9th Cir.2002), quoting L.L. Bean, Inc. v. Drake Publishers, Inc., 811 F.2d 26, 29 (1st Cir.1987).

In 1999, Congress enacted the Anticy-bersquatting Consumer Protection Act [“ACPA”], 15 U.S.C. § 1125(d), as an amendment to the Lanham Act. The ACPA prohibits “cybersquatting,” which occurs “when a person other than the trademark holder registers the domain name of a well known trademark and then attempts to profit by either ransoming the domain name or by using the domain name to direct business from the trademark holder to the domain name holder.” DaimlerChrysler v. The Net, Inc., 388 F.3d 201, 203 (6th Cir.2004), citing Sporty’s Farm L.L.C. v. Sportsman’s Market, Inc., 202 F.3d 489, 493 (2nd Cir.2000).

Both of these statutes have the potential to infringe upon the First Amendment right of free speech. Because the Lanham Act is restricted to commercial speech, which is entitled to a lesser degree of protection, courts have rejected challenges to its constitutionality. Semco, Inc. v. Amcast, Inc., 52 F.3d 108, 111-12 (6th Cir.1995). Courts have also made clear that non-commercial critical commentary may lawfully include the tradename or trademark. In Taubman Co. v. Webfeats, 319 F.3d 770, 778 (6th Cir.2003), the Court of Appeals held:

The rooftops of our past have evolved into the internet domain names of our present. We find that the domain name is a type of public expression, no different in scope than a billboard or a pulpit, and [Defendant] has a First Amendment right to express his opinion about [Plaintiff], and as long as his speech is not commercially misleading, the Lanham Act cannot be summoned to prevent it.

The ACPA essentially adopts this same distinction. The statute prohibits a use of domain name which is identical or confusingly similar to a tradename or trademark not held by the domain name owner. The prohibited use, however, must involve “a bad faith intent to profit from that mark....” 15 U.S.C. § 1125(d)(1)(A). In Coca-Cola Co. v. Purdy, 382 F.3d 774, 778 (8th Cir.2004), the court held that the ACPA “was intended to balance the inter *968 ests 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.”

As described in more detail below, the Defendants obtained ownership of domain names which are either identical or confusingly similar to trademarks and trade-names held by the Plaintiffs. Importantly, the Defendants are in head to head competition with the Plaintiffs regarding the sales of real estate in Central Ohio. Some of the speech communicated through the Defendants’ domain sites is highly critical of the Plaintiffs. In essence, however, the domain names have been used in direct relationship to Defendants’ real estate business and this use is not analogous to non-commercial, critical speech otherwise protected by the First Amendment.

II.

Plaintiffs HER, Inc., Real Living, Inc., Harley E. Rouda, Jr., Kaira Sturdivant Rouda and Harley E. Rouda, Sr. [collectively referred to as “Plaintiffs”], seek a preliminary injunction to prevent Defendants RE/MAX First Choice, LLC [“RE/ MAX”] and David E. Barlow from using Internet domain names incorporating Plaintiffs’ personal names and registered marks. The Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1331 and 1367.

Plaintiff HER is a Midwest real estate firm, which provides residential real estate brokerage services, real estate information and other related services to the public. CComplaint at ¶ 8). HER is incorporated under the laws of Ohio and its principal place of business is located in Columbus, Ohio. Plaintiffs Harley E. Rouda Jr., Kaira Sturdivanfr-Rouda and Harley E. Rouda, Sr. are residents of Franklin County, Ohio. (Id. at ¶¶ 1-3). Harley Rouda, Sr. is the founder of HER, and his initials “H.E.R.” are the source of the company’s name. His son, Harley Rouda, Jr. is the current Chief Executive Officer, General Counsel and Managing Partner of Real Living, Inc. (Id. at ¶ 9). Kaira SturdivanWRouda is the Chief Operating Officer of Real Living, Inc. Harley Rouda, Jr. is her husband. (Id. at ¶ 15).

Since 1977, the term “HER” has been a registered trademark with the United States Patent and Trademark Office. (PI. Exhibit 4). Plaintiffs’ other registered trademarks include: “REAL LIVING, RELAX WITH REAL LIVING,” and “IT’S GOT TO BE REAL.” (PI. Exhibits 5, 6). Plaintiffs assert that the names “Harley E. Rouda, Sr.,” “Harley E. Rouda, Jr.,” and “Kaira Sturdivant-Rouda” are synonymous with HER and REAL LIVING.

Defendant RE/MAX is a limited liability company organized under the laws of the State of Ohio. RE/MAX is a licensed real estate brokerage company. Defendant Barlow testified that he is a licensed real estate agent and that he was employed by Plaintiff Real Living, Inc. from 1998 to 2004. Barlow is currently an agent for Defendant RE/MAX, First Choice, LLC. (Complaint at ¶¶ 4-5).

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Bluebook (online)
468 F. Supp. 2d 964, 2007 U.S. Dist. LEXIS 485, 2007 WL 43747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/her-inc-v-remax-first-choice-llc-ohsd-2007.