Porsche Cars North America, Inc. v. Porsche.Net

302 F.3d 248, 2002 WL 1941442
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 23, 2002
DocketNos. 01-2028, 01-2073
StatusPublished
Cited by9 cases

This text of 302 F.3d 248 (Porsche Cars North America, Inc. v. Porsche.Net) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porsche Cars North America, Inc. v. Porsche.Net, 302 F.3d 248, 2002 WL 1941442 (4th Cir. 2002).

Opinion

Affirmed in part, dismissed in part, and vacated and remanded in part by published opinion. Judge MOTZ wrote the opinion, in which Chief Judge WILKINSON and Senior Judge BALDOCK joined.

OPINION

DIANA GRIBBON MOTZ, Circuit Judge.

* Porsche Cars North America, Incorporated and Dr. Ing. h.c.F. Porsche AG, a German company, brought this in rem action against certain Internet domain names related to the name “Porsche” or another Porsche trademark, seeking an injunction that would transfer the right to use the domain names. The Porsche companies contend that some of the domain names violated their rights under the Anti-cybersquatting Consumer Protection Act, 15 U.S.C.A. § 1125(d)(1) (West Supp.2002), and that all of the domain names diluted their trademark in contravention of 15 U.S.C.A. § 1125(c) (West 1998 & Supp. [252]*2522002). The district court dismissed both claims. Because the district court rejected the anticybersquatting claims against some domain names on the basis of a challenge to in rem jurisdiction raised only three days before trial without excuse for the delay, we vacate the order dismissing those claims. However, because federal trademark-dilution law does not authorize the remedy Porsche seeks under 28 U.S.C.A. § 1655 (West 1994), we affirm the order dismissing the trademark-dilution claims.

I.

The Internet is an “international computer network of both Federal and non-Federal interoperable packet switched data networks”: a network of computers all around the world through which people communicate information to each other. 47 U.S.C.A. § 280(f)(1) (West 2001); see also 15 U.S.C.A. § 1127 (West Supp.2002) (incorporating this definition for trademark law); 47 U.S.C.A. § 231(e)(3) (West 2001) (providing an alternative definition for a different statutory provision).

Federal law defines a domain name as “any alphanumeric designation which is registered with or assigned by any domain name registrar, domain name registry, or other domain name registration authority as part of an electronic address on the Internet.” 15 U.S.C.A. § 1127. Also known colloquially as a “Web address,” a domain name is a combination of characters that a person types into a computer software program called a browser, in order to gain access to a Web site, a set of computer files through which another person provides information over the Internet. See Sporty’s Farm L.L.C. v. Sportsman’s Mkt, Inc., 202 F.3d 489, 492-93 (2d Cir.2000).

A person seeking the right to use a particular domain name may register with one of a number of registrar organizations that assign domain names on a first-come first-served basis. See id. at 493. Many consumers look for a given company’s Web site by checking to see if the company uses a domain name made up of the company’s name or brand name with the suffix “.com.” A person might, for example, look for information about Baltimore’s major-league baseball team by typing “www.bal-timoreorioles.com”. For this reason, “companies strongly prefer that their domain name be comprised of the company or brand trademark and the suffix.com.” Id.; see also Brookfield Communications, Inc. v. West Coast Entm’t Corp., 174 F.3d 1036, 1044-45 (9th Cir.1999).

On January 6, 1999, the two Porsche companies (collectively “Porsche”) filed a trademark-dilution action under 15 U.S.C.A. § 1125(c) against 128 domain names related to Porsche trademarks. Porsche alleged that consumers’ discovery on the Internet of domain names including Porsche’s trademarks or their variants diluted its marks in violation of § 1125(c). In its complaint, Porsche sought only one form of relief — “[t]hat the Domain Names be preliminarily and permanently transferred ... to Porsche” — and asserted a single basis for in rem jurisdiction — 28 U.S.C.A. § 1655.

Few of the domain names offered any defense. The district court entered default judgments against many of them, and Porsche voluntarily dismissed its claims against many others. Five domain names did remain in the action. Christian Holm-green, a British citizen, had registered two of them: porsche.net and porscheclub.net (collectively “the British domain names”). Alan J. Martin, a resident of the state of Georgia who did business under a trade name, had registered three others: por-schelease.com, porscheloan.com, and por-[253]*253scheloans.com (collectively “the Georgia domain names”).

On motion by the British domain names, the district court dismissed the complaint in its entirety on the ground that 28 U.S.C.A. § 1655 provided no in rem jurisdiction for the asserted trademark-dilution claims. See Porsche Cars N. Am., Inc. v. Porsch.Com, 51 F.Supp.2d 707 (E.D.Va. 1999), vacated by Porsche Cars N. Am., Inc. v. Allporsche.com, Nos. 99-1804 & 99-2152, 2000 WL 742185 (4th Cir. June 9, 2000).

While Porsche’s appeal from the dismissal order was pending in this court, Congress enacted the Anticybersquatting Consumer Protection Act (ACPA or “the anticybersquatting statute”), authorizing in rem actions against domain names in certain circumstances. Pub.L. No. 106-113, 113 Stat. 1501, 1501A-545 (1999), codified in relevant part at 15 U.S.C.A. § 1125(d). We therefore vacated the district court’s order dismissing the case and remanded for consideration of the ACPA, without reaching the question of whether § 1655 provided a basis for in rem jurisdiction for the trademark-dilution claims asserted by Porsche. See Porsche, 2000 WL 742185.

On August 11, 2000, Porsche amended its complaint, adding anticybersquatting claims under 15 U.S.C.A. § 1125(d)(1) and reiterating its trademark-dilution claims. A month later, the British and Georgia domain names moved to dismiss the amended complaint. On December 29, 2000, the district court again dismissed the trademark-dilution claims for lack of jurisdiction under § 1655. The court also dismissed the anticybersquatting claims against the Georgia domain names because it found that in personam jurisdiction was available against Martin.

The in rem anticybersquatting claims against the British domain names have a more complex procedural history. On December 29, 2000, the court ruled that the amended complaint did not allege sufficient facts to demonstrate that Porsche had exercised due diligence in seeking to obtain in personam jurisdiction over Holm-green, and so dismissed the in rem anticy-bersquatting claims against the British domain names. However, this dismissal was without prejudice, permitting Porsche to file a second amended complaint to plead specifically the efforts it had made to obtain personal jurisdiction over Holmgreen. Porsche then did file a second amended complaint, which the British domain names again moved to dismiss, asserting that Porsche still had not alleged facts sufficient to demonstrate a diligent search for Holmgreen’s contacts with the United States.

On February 23, 2001, after oral argument, the district court denied the motion to dismiss the second amended complaint, finding that Porsche had exercised due diligence and had satisfactorily demonstrated a lack of personal jurisdiction over Holmgreen within the United States.

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302 F.3d 248 (Fourth Circuit, 2002)

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Bluebook (online)
302 F.3d 248, 2002 WL 1941442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porsche-cars-north-america-inc-v-porschenet-ca4-2002.