Pinehurst, Inc. v. Wick

256 F. Supp. 2d 424, 66 U.S.P.Q. 2d (BNA) 1610, 2003 U.S. Dist. LEXIS 5388, 2003 WL 1870238
CourtDistrict Court, M.D. North Carolina
DecidedMarch 21, 2003
DocketCIV.1:01 CV 00441
StatusPublished
Cited by9 cases

This text of 256 F. Supp. 2d 424 (Pinehurst, Inc. v. Wick) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pinehurst, Inc. v. Wick, 256 F. Supp. 2d 424, 66 U.S.P.Q. 2d (BNA) 1610, 2003 U.S. Dist. LEXIS 5388, 2003 WL 1870238 (M.D.N.C. 2003).

Opinion

MEMORANDUM OPINION

BULLOCK, District Judge.

Pinehurst, Inc. (“Plaintiff’) filed the present suit against pro se Defendants Brian Wick and American Distribution Systems, Inc. (collectively “Defendants”) alleging violation of the Anticybersquatting Consumer Protection Act, 15 U.S.C. § 1125(d), and the Federal Trademark Dilution Act, 15 U.S.C. § 1125(c). Plaintiffs suit arises out of Defendants’ allegedly unlawful registration and use of internet domain names that are identical or confusingly similar to Plaintiffs federal service marks. This matter is before the court on Plaintiffs motion for summary judgment pursuant to Federal Rule of Civil Procedure 56.

FACTS

Plaintiff is the owner of the internationally famous Pinehurst Golf Resort and Pi-nehurst No. 2 golf course, which has hosted many national golf tournaments, including the United States Open in June *426 1999. Plaintiff owns two federal service marks for golfing, resort, and country club services: “Pinehurst” (Reg. Nos. 1,293,332 and 1,601,470) and “Pinehurst Resort and Country Club” (Reg. Nos. 1,663,739 and 1,663,828), which Defendants admit are famous and distinctive marks.

In 1999, Defendants registered 3,000 to 4,000 domain names. Among these domain names, Defendants registered domain names that were confusingly similar to some of the most famous marks in the country. Defendants have registered approximately seven percent of the Fortune 500 company names as domain names. Defendants have also registered 250 domain names similar to well-known law firms “in order to mess with attorneys because Defendants feel lawyers are the biological parents of big-business and the U.S. Constitution has never made a mortgage payment for a lawyer.” (PL’s Mem. Supp. Mot. Summ. J., Ex. B at No. 134.) In addition to targeting businesses and law firms, Defendants have targeted famous country clubs, golf clubs, and recreational facilities in their registration of domain names in order to “mess” with the lives of executives who play golf at these facilities.

In 2000, Defendants spent approximately $42,500.00 to register additional domain names, to renew prior registrations, and to transfer existing domain names to a new register. As of September 2002, Defendants owned approximately 8,000 domain names and have owned as many as approximately 10,000 domain names in the past. Of those domain names, approximately ninety-nine percent are “.corns” and approximately twenty percent of those domain names correspond to names or marks of established corporations. Defendants have subsequently sold several of their registered domain names to companies that have contacted them requesting to purchase the company’s domain name. Approximately ninety-five percent of Defendants’ corporate income has been generated through the sale of generic domain names and out-of-court settlements with parties threatening legal action. In 2000, Defendants earned approximately $187,000.00 from the sale of their domain names.

On October 7, 1999, Defendants, using the trade name “NameIsForSale.com,” registered the domain name “PinehurstRe-sort.com.” In November 2000, Plaintiff sent Defendants a cease-and-desist letter requesting that Defendants transfer the domain name “PinehurstResort.com” to Plaintiff. In exchange for the transfer, Plaintiff agreed to waive its claim for damages and attorney’s fees. Defendants refused to transfer the domain name. After Plaintiffs efforts to obtain the transfer of “PinehurstResort.com” failed, it filed the present suit. Following the filing of this suit, Defendants registered “PinehurstRe-sorts.com.” Plaintiff amended its complaint to include Defendants’ registration and use of this domain name. Then, approximately two weeks after Plaintiff filed its amended complaint, Defendants registered “Pin-hurst.com.”

Defendants admit that by registering “PinehurstResort.com” and “PinehurstRe-sorts.com” they wanted to have access to people trying to find Plaintiff. Defendants’ “free speech forum” at “Pinehurs-tResort.com” has contained, inter alia, Defendants’ “TownDrunk” logo, a reference to Defendants’ “4thReich” website in a disclaimer, and statements regarding federal judge Lewis Babcock as a “first amendment challenged country club good ‘ole boy.’ ” (Pl.’s Mem. Supp. Mot. Summ. J., Ex. B at Nos. 22, 83.) Also included on Defendants’ Pinehurst websites are photographs of a miniature golf course, a trailer park, and a pond with people swimming.

*427 Plaintiffs amended complaint states two claims: (1) dilution in violation of the Federal Trademark Dilution Act; and (2) cy-bersquatting in violation of the Anticy-bersquatting Consumer Protection Act. Plaintiff alleges that Defendants, through the use of the websites “PinehurstRe-sort.com” and “PinehurstResorts.com,” have denigrated Plaintiff and harmed the goodwill Plaintiff has established over nearly 100 years of use and promotion of its famous Pinehurst service marks. Plaintiff further alleges that Defendants’ registration of domain names identical or confusingly similar to Plaintiffs Pinehurst marks was done in bad faith with an intent to profit. Plaintiff seeks as relief a permanent injunction, damages, attorney’s fees and costs, and transfer of ownership of Defendants’ Pinehurst domain names.

DISCUSSION

I. Standard of Review

Summary judgment must be granted if there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56(c). The moving party bears the burden of persuasion on the relevant issues. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The non-moving party may survive a motion for summary judgment by producing “evidence from which a [fact finder] might return a verdict in his favor.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 257, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). When the motion is supported by affidavits, the non-moving party must set forth specific facts showing that there is a genuine issue for trial. See Fed.R.Civ.P. 56(e); see also Cray Communications, Inc. v. Novatel Computer Sys., Inc., 33 F.3d 390, 393-94 (4th Cir.1994) (moving party on summary judgment motion can simply argue the absence of evidence by which the non-movant can prove her case). In considering the evidence, all reasonable inferences áre to be drawn in favor of the non-moving party. Anderson, 477 U.S. at 255,106 S.Ct. 2505.

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256 F. Supp. 2d 424, 66 U.S.P.Q. 2d (BNA) 1610, 2003 U.S. Dist. LEXIS 5388, 2003 WL 1870238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinehurst-inc-v-wick-ncmd-2003.