Northern Light Technology, Inc. v. Club

236 F.3d 57, 57 U.S.P.Q. 2d (BNA) 1277, 2001 U.S. App. LEXIS 161, 2001 WL 8580
CourtCourt of Appeals for the First Circuit
DecidedJanuary 8, 2001
Docket00-1641
StatusPublished
Cited by47 cases

This text of 236 F.3d 57 (Northern Light Technology, Inc. v. Club) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Light Technology, Inc. v. Club, 236 F.3d 57, 57 U.S.P.Q. 2d (BNA) 1277, 2001 U.S. App. LEXIS 161, 2001 WL 8580 (1st Cir. 2001).

Opinion

STAHL, Circuit Judge.

This case involves a dispute over the simultaneous use of two similar Internet domain names by two separate entities. Defendants-appellants Northern Lights Club, Jeff Burgar and 641271 Alberta Ltd. (collectively “Northern Lights” or “defendants”) appeal a preliminary injunction entered by the district court requiring the posting of a specified disclaimer on their World Wide Web site’s portal page. The court entered the injunction after finding that plaintiff-appellee Northern Light Technology, Inc. (“Northern Light” or “plaintiff’) was likely to prevail on the merits of its state and federal trademark claims and its claim under the Anticybers-quatting Consumer Protection Act, 15 U.S.C. § 1125(d) (“ACPA”).

Defendants assert three bases for relief in this interlocutory appeal: (1) that the district court lacks personal jurisdiction, and hence the power to enjoin them; (2) that the district court erred in concluding that the plaintiff was likely to succeed on the merits of its claims; and (3) that the injunction currently in place is overly broad and consequently infringes their free-speech rights. Finding that the district court properly acquired jurisdiction over defendants when their agent was served with process within the forum state, and discerning no basis for disturbing the district court’s determination on the likely success of plaintiffs suit, we uphold the district court’s issuance of a preliminary injunction. And because defendants only obliquely pressed their First Amendment argument before the district court, we decline to decide the issue for purposes of this appeal.

I. Background

The facts of this case are extensively chronicled in the district court’s opinion, see Northern Light Tech., Inc. v. Northern Lights Club, 97 F.Supp.2d 96 (D.Mass.2000), and so we confine our discussion to the events relevant to this appeal. On September 16, 1996, plaintiff registered the Internet domain name northern-light.com with Network Solutions, Inc. (“NSI”), which at that time was the organization exclusively entrusted with the task of registering domain names on the World Wide Web. 1 Plaintiff also filed registration papers for the “Northern Light” service mark with the United States Patent and Trademark Office (“PTO”) during that same month. 2 Nearly a year later, in August 1997, plaintiff began its operation of the northernlight.com website (and, consequently, its use of the “Northern Light” mark in commerce) as a search engine. Search engines are popular Web-retrieval tools that match a search query submitted by an Internet user with the websites whose content best corresponds to the submitted search terms. The northern-light.com site has remained in continuous existence as a search engine since August 1997.

Defendant Jeff Burgar, a resident of High Prairie, Alberta, Canada, is the pres *59 ident and principal shareholder of 641271 Alberta, Ltd., an Alberta corporation that owns the northernlights.com domain name. Burgar, a self-described “Internet entrepreneur,” has, since the mid-1990s, registered thousands of “catchy” domain names i.e., Internet addresses appropriating, in identical or slightly modified form, the names of popular people and organizations. He is also the president of Northern Lights Club, an unincorporated association with a listed address in Las Vegas, Nevada. While Northern Lights Club’s stated mission is to bring together devotees of the Northern Lights, or aurora borealis, including businesses that take them name from the famous celestial phenomenon, Burgar’s testimony indicates that the club has no actual individual members.

In October 1996, approximately one month after plaintiff registered its north-ernlight.com website, Burgar, on behalf of Northern Lights Club, registered the northernlights.com domain name with NSI. 3 Soon after registration, Burgar licensed the name to FlairMail, a vanity email service that he manages and that is owned by a local Alberta newspaper. 4 Burgar “believes” that this newspaper is owned by his wife. Under this arrangement with FlairMail, defendants offered email accounts under the northern-lights.com domain name that users could access through some other website, such as flairmail.com, although Internet users who attempted to visit the northern-lights.com page on the World Wide Web would find that no such site existed. 5

The two similar domain-name registrations enjoyed a peaceful coexistence until March 2, 1999, when a USA Today story on Internet search engines erroneously identified plaintiffs website as northern-lights.com. After ascertaining that defendants were the owners of this domain name, plaintiffs marketing director contacted Burgar to find out whether defendants might be interested in selling it. The parties exchanged a series of proposals and counterproposals by e-mail over a two-month period but ultimately no sales or licensing agreement was consummated. Soon thereafter, in April 1999, defendants posted an active page on the northern-lights.com World Wide Web site. Visitors to the site saw, among other things, a site-search function near the top of the screen that enabled users to perform a search of the northernlights.com site for specific words or phrases, as well as links to Flair-Mail and other members of the “Northern Lights Community.” Plaintiffs Web site was placed third in the list of the Northern Lights Community “Business Listings.” 6 Plaintiff had not agreed to this listing.

On July 14, 1999, plaintiff sent Burgar a cease-and-desist letter, demanding that the northernlights.com site be deactivated. Defendants chose not to respond to this letter. Fifteen days later, plaintiff asked NSI to strip defendants of the northern-lights.com domain name based on the similarity of their respective marks, but NSI declined, citing the one-letter discrepancy between the name of defendant’s website and plaintiffs trademark. On August 6, 1999, plaintiff filed the instant lawsuit under federal and state theories of unfair *60 competition, trademark infringement, and trademark dilution. In its complaint, plaintiff sought both a temporary restraining order and a preliminary injunction. In December 1999, plaintiff amended its complaint to add a claim under ACPA (which had been enacted into law less than one month earlier) and to abandon its federal trademark-dilution claim and its state-law claims of unfair competition and trademark dilution.

Moments before the district court hearing on September 1, 1999 to consider the merits of plaintiffs claims and the court’s personal jurisdiction over defendants, plaintiffs agent physically served process upon Burgar, who had traveled voluntarily to Boston from Alberta to witness the proceedings and to make himself available for testimony if needed. Although the hearing itself focused largely on the convoluted issues of personal jurisdiction arising from Internet activities, it also touched upon the merits of plaintiffs request for preliminary injunctive relief.

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236 F.3d 57, 57 U.S.P.Q. 2d (BNA) 1277, 2001 U.S. App. LEXIS 161, 2001 WL 8580, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-light-technology-inc-v-club-ca1-2001.