Impulse Communications, Inc. v. Uplift Games, LLC

CourtDistrict Court, D. Rhode Island
DecidedDecember 23, 2024
Docket1:24-cv-00166
StatusUnknown

This text of Impulse Communications, Inc. v. Uplift Games, LLC (Impulse Communications, Inc. v. Uplift Games, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Impulse Communications, Inc. v. Uplift Games, LLC, (D.R.I. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF RHODE ISLAND

) IMPULSE COMMUNICATIONS, ) INC., ) ) Plaintiff, ) v. ) C.A. No. 24-cv-166-JJM-LDA UPLIFT GAMES, LLC, ) TREETOP GAMES ) LLC, and ) LIONFIELD INVESTMENTS LTD. ) ) Defendants. ) )

MEMORANDUM AND ORDER JOHN J. MCCONNELL, JR., United States District Court Chief Judge In 1998, Plaintiff Impulse Communications, Inc. (“Impulse”) launched its website “AdoptMe.com” ( ECF No. 1 at 4, ¶¶ 11-12), which two years later began featuring a virtual pet game called “Adopt Me”. . ¶ 12. In 2017, Defendant Uplift Games, LLC (“Uplift”) launched its virtual pet game “Adopt Me” on the Roblox platform.1 . at 11, ¶¶ 50-51. Impulse has sued Uplift, Treetop Games LLC (“Treetop”), and Lionfield Investments Ltd. (“Lionfield”) (collectively “Defendants”) for various trademark infringement claims. The crux of the Complaint is that Defendants knew or should have known about the popularity of Impulse’s “Adopt Me”

1 “Roblox is an online game platform and game creation system developed by Roblox Corporation that allows users to program and play games created by themselves or others.” Wikipedia, https://en.wikipedia.org/wiki/Roblox. brand, showed by its expansion into other markets and into the mobile iOS2 application arena, and as a result, should not have tried to register almost identical federal trademarks. Defendants maintain that the “Adopt Me” consumers did not so

widely recognize the brand that it would to be considered famous, and that the requisite bad-faith intent to profit off their domain names “playadopt.me” and “playadoptme.com” was absent. Impulse’s Complaint includes the following counts:  Count I Trademark Infringement under 15 U.S.C. § 1125(a))  Count II Dilution of Trademark by Blurring under 15 U.S.C. § 1125(c))  Count III Dilution of Trademark by Tarnishment under 15 U.S.C. § 1125(c)  Count IV Violation of the Anticybersquatting Consumer Protection Act under 15 U.S.C. § 1125(d)  Count V Common-Law Trademark Infringement  Count VI Common-Law Unfair Competition  Count VII Violation of Trademark Anti-Dilution Statute under R.I.G.L. § 6- 2-12  Count VIII Tortious Interference with Contractual Relations  Count IX Tortious Interference with Prospective Business Relations  Count X Petition for Cancellation of Trademarks Before the Court is Defendants’3 Motion to Dismiss Counts IV and VI.4 I. FACTUAL BACKGROUND A. Impulse’s “Adopt Me” – Inception Impulse has been using its “Adopt Me” mark continuously since 2000, despite never registering its trademark. . at 5, ¶ 16. Since then, Impulse has invested

2 iPhone Operating System. 3 Defendant Lionfield notes in its Motion to Dismiss and Strike that its motion is “substantively nearly identical with the present motion.” ECF No. 22. Therefore, Uplift, Treetop, and Lionfield will hereinafter be called “Defendants.” 4 Plaintiffs have withdrawn Counts II, III, VIII, and IX of its Complaint. Defendants have moved to dismiss Counts IV and VI only. Therefore, Counts I, V, VII and X stand unchallenged at this stage. approximately $200,000 in the brand. . ¶ 17. The game is available to players in all fifty states, and while the game is free, Impulse generates approximately $1,600 a month in revenue from third-party advertising.5 . ¶¶ 18-19. In the mid-2000s,

Impulse expanded its “Adopt Me” brand from an online game into the plush toy market through an agreement with Toys “R” Us. . ¶ 21. This expansion allowed consumers to buy an “Adopt Me” stuffed animal equipped with a code for the animal’s virtual presence in the “Adopt Me” game. . at 6, ¶ 22. Impulse’s “Adopt Me” brand has sought to cultivate a “wholesome, safe, child-and-family-friendly experience.” . at 6-7, ¶ 24. They have tried to do so by prohibiting interaction or communication among players. . at 7, ¶ 26. Since the game was launched, “millions of virtual pets

have been adopted,” and there have been about 5,000 visitors a day. . ¶¶ 27-28. During this time, “Adopt Me” was the number one Google search result under the search term “virtual pets.” . ¶ 29. Impulse cites many blog posts and emails from users to support its popularity. . at 7-8, ¶ 32. B. Impulse’s “Adopt Me” – Recent Changes In 2020, Impulse converted its website version to an iOS application and used

the existing website domain to instruct users where to download the new application. . at 9, ¶ 34. The next year, it launched an updated version of its website platform, which had been reprogrammed. . ¶ 35. A few months later, Impulse issued a press release announcing six new “Adopt Me” pets and created a theme song music video.

5 At one point, Impulse generated $5,000 a month from its third-party advertisements. . at 7, ¶ 30. . ¶¶ 36-37. An internal blockchain6 was also added to the website to keep track of all transactions. . at 10, ¶ 39. Later that year, Impulse added a metaverse auction room to the website, enabling users to bid on the virtual pets. . ¶ 41. Impulse

eventually partnered with RescueGroups.org to allow users to adopt virtual versions of real pets in animal shelters. . ¶ 42. In 2023, the website was redesigned for a second time, with a focus on AI-powered virtual pets. . at 11, ¶ 46. C. Defendants’ “Adopt Me!” Uplift first launched its virtual game “Adopt Me” on the Roblox online gaming platform in 2017. . ¶¶ 50-51. Although Uplift’s game was originally for virtual humans, it changed to virtual pets in 2019. . at 12, ¶ 57. After launching, Uplift

registered the “play.adoptme” domain for its game. . at 11, ¶ 53. The next year, Uplift added an exclamation point to its brand “Adopt Me!” presumably to differentiate it from Impulse’s application. . at 13, ¶ 61. After doing so, Uplift’s game soared in popularity on Roblox attracting billions of visitors each year. . at 12, ¶ 58. Despite the addition of the exclamation point, Defendants’ website continued to omit the exclamation point. . at 13, ¶ 62. Defendants’ employees

regularly omitted the exclamation point when referring to their own game in emails and news releases.7 . ¶ 63. Defendants have recently expanded their brand into the toy markets at Target, Walmart, and Amazon by offering plush “Adopt Me!” pets.

6 A blockchain is a digital ledger that records transactions. 7 Impulse includes an email correspondence from Uplift employee Josh Ling that reads: “. . . I work on Adopt Me, the Roblox game.” ECF No. 1 at 13, ¶ 63; the Plaintiff also cites to several news releases where the exclamation point has been omitted. . ¶ 64. . at 14 ¶ 67. They have also licensed “Adopt Me!” to Hasbro’s NERF division and McDonald’s Happy Meals. . ¶ 68. “Adopt Me!” is now available on an iOS application as well. . ¶ 69.

D. Recent Actions In 2020, Uplift contacted Impulse about purchasing the “AdoptMe.com” domain, though Impulse had not listed it for sale. . at 15-16, ¶¶ 77, 81. Even so, Impulse entered negotiations with Uplift. . at 16, ¶¶ 82-83. During this negotiation period, Impulse paid $100/month to keep the website active and updated it to include a public notice that the website was no longer available and provided a new website URL to which visitors could go.8 . at 16, ¶¶ 84, 87; . at 19, ¶ 106.

In August of that year, the negotiations ended without resolution, and Impulse went ahead with existing investment plans, which included creation of an iOS application. . at 16, ¶¶ 85-86. Impulse also sent notice to Defendants of its intent to continue using the “Adopt Me” mark in commerce, through an iOS app. .

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