Image Online Design, Inc. v. Core Ass'n

120 F. Supp. 2d 870, 2000 U.S. Dist. LEXIS 10259, 2000 WL 1661434
CourtDistrict Court, C.D. California
DecidedJune 22, 2000
DocketCV 99-11347 RJK
StatusPublished
Cited by7 cases

This text of 120 F. Supp. 2d 870 (Image Online Design, Inc. v. Core Ass'n) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Image Online Design, Inc. v. Core Ass'n, 120 F. Supp. 2d 870, 2000 U.S. Dist. LEXIS 10259, 2000 WL 1661434 (C.D. Cal. 2000).

Opinion

MEMORANDUM OF DECISION AND ORDER GRANTING DEFENDANTS CORE ASSOCIATION AND KEN STUBBS’S MOTION FOR SUMMARY JUDGMENT

KELLEHER, District Judge.

Pursuant to Federal Rule of Civil Procedure 56, Defendant CORE Association (“CORE”) filed a motion summary judgment as to all claims. The Court has considered the moving and responding papers as well as the colloquy at oral argument, and for the reasons set forth below the Court grants Defendants’ motion.

J. Introduction

On October 29, 1999, Plaintiff Image Online Design, Inc. (“Image Online”) filed an action against CORE and Ken Stubbs (“Stubbs”), CORE’s president. Image-Online seeks injunctive and monetary relief under two theories:

1) False designation of origin; and
2) Unfair competition. 1

Subject matter jurisdiction is purportedly based on diversity jurisdiction pursuant to 28 U.S.C. §§ 1338(a) and (b).

*872 Plaintiff claims that it has common law trademark rights in the service mark “.web” which are being infringed by Defendants. In particular, it claims that Defendants have attempted to misappropriate Plaintiffs mark by providing computer network addresses and domain name registry services using the .web mark. Among other requests, Plaintiff desires that Defendant and its agents be enjoined from using the mark .web as a trademark, service mark, or trade name, or in any advertising.

Pursuant to Rule 56 of the Federal Rules of Civil Procedure, Defendant CORE moves for summary judgment. The parties have stipulated to a bifurcation of the issues in this case. At this point, Defendant only requests the Court to determine whether Plaintiff has enforceable service mark rights in the term .web.

II. Statement of Facts

The following recital of facts is a synthesis of the papers submitted, articles read by the Court as background for this Order, and the discussion that occurred at the hearing. The relevant facts at issue for this motion are further identified in the analysis section of this Order.

A. The Evolution of the Domain Name System

When a person or entity seeks to maintain an Internet web site, that party must reserve a location, called an Internet Protocol (“IP”) Address. Because a random numeric address is difficult to remember, alphanumeric domain names are used. In order for a user to access the web site, the user enters the alphanumeric domain name 2 combination that corresponds to the assigned IP Address and is routed to the host computer. Up until very recently, an independent organization called Network Solutions, Inc. (“NSI”) had the exclusive responsibility to perform the “translation” function of converting the user’s alphanumeric domain name into the appropriate IP Address.

In 1993, the National Science Foundation awarded a five-year cooperative agreement to NSI, 3 under which NSI was to serve as the exclusive provider of domain name registration services for those using the nonmilitary Top Level Domain (“TLD”) names — .com, .net, .org, .edu and .gov. 4

The International Ad Hoc Committee (“IAHC”) was formed in 1996 and was charged with the task of developing administrative and management enhancements for the domain name system. In its Final Report, the IAHC called for the creation of seven new generic TLDs (“gTLDs”) —.firm, .store, 5 .web, .arts, .rec, .info, and .nom. 6 The *873 Final Report also recommended that second level domain names within the new gTLDs be distributed and administered by different, competing, registrars dispersed throughout the world, rather than just by NSI.

In response to the IAHC’s Final Report, the United States Department of Commerce (“DOC”) issued its own recommendations. 7 The White Paper set forth the DOC’s recommendations as to how technical management of Internet domain names should develop once NSI’s contract expired. The DOC sought to remedy the “widespread dissatisfaction” with the manner in which the domain name system had been run. It based this asserted dissatisfaction on (i) increased trademark disputes; (ii) growing commercial interest in the Internet and the attendant calls for a stronger management structure; (iii) international concerns that the United States government retained too much control over the domain name registration; and (iv) the absence of competition in the field of domain name registrars.

Because the United States government had been involved in the early development of the Internet, many parts of the domain name system were either performed outright by U.S. government agencies, or pursuant to contracts with such agencies, including NSI’s registrar activities. The DOC White Paper encouraged the ending of U .S. government involvement, but was concerned with how the removal would be implemented. The DOC White Paper made numerous suggestions as to how the U.S. government removal would be implemented, as well as recommendations for how increased Internet activity could be encouraged while ensuring that trademark rights were protected.

One such recommendation was the formation of a private corporation with oversight capabilities. In 1998, the Internet Corporation for Assigned Names and Numbers (“ICANN”) was formed. ICANN is a non-profit, private California corporation created expressly to assume responsibility for the IP address space allocation, protocol parameter assignment, domain name system management, and root server system management functions previously performed under U.S. Government contracts. 8

In November 1998, the DOC entered into a Memorandum of Understanding with ICANN to develop a plan for the management of the domain name system (the “ICANN MoU”). 9 Under the ICANN MoU, ICANN and the DOC attempt to jointly design, develop and test the procedures used to carry out domain name system management functions without interrupting the functional operation of the Internet. Of specific relevance for this case, ICAAN and DOC agreed to oversee the development of a policy for determining the circumstances under which new gTLDs would be added to the root system and to collaborate in the development of a plan for the introduction of *874

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Bluebook (online)
120 F. Supp. 2d 870, 2000 U.S. Dist. LEXIS 10259, 2000 WL 1661434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/image-online-design-inc-v-core-assn-cacd-2000.