Rescuecom Corp. v. Google, Inc.

456 F. Supp. 2d 393, 83 U.S.P.Q. 2d (BNA) 1208, 2006 U.S. Dist. LEXIS 70409, 2006 WL 2811711
CourtDistrict Court, N.D. New York
DecidedSeptember 28, 2006
Docket5:04-CV-1055 (NAM/GHL)
StatusPublished
Cited by7 cases

This text of 456 F. Supp. 2d 393 (Rescuecom Corp. v. Google, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rescuecom Corp. v. Google, Inc., 456 F. Supp. 2d 393, 83 U.S.P.Q. 2d (BNA) 1208, 2006 U.S. Dist. LEXIS 70409, 2006 WL 2811711 (N.D.N.Y. 2006).

Opinion

MEMORANDUM-DECISION AND ORDER

MORDUE, Chief Judge.

I. INTRODUCTION

Defendant Google, Inc., moves to dismiss plaintiff Rescuecom Corporation’s complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure for failure to state a claim on which relief can be granted. Defendant contends that selling “Rescuecom”, plaintiffs trademark, to plaintiffs competitors as a keyword that triggers the appearance of links to their websites among the search results an Internet user receives when he or she enters “Rescuecom” in Google, defendant’s Inter *396 net search engine, 1 is not a trademark “use” within the meaning of the Lanham Act, 15 U.S.C. § 1051 et seq. Thus, defendant argues, plaintiff can prove no set of facts entitling it to relief on its trademark infringement claim (Count I), false designation of origin claim (Count II), federal dilution claim (Count III), common law trademark infringement claim (Count IV), or state law dilution claim (Count V), all of which require proof of trademark use. Defendant also seeks dismissal of plaintiffs tortious interference claim (Count VI) for failure to state a claim. Plaintiff opposes defendant’s motion.

II. The Complaint

The Court accepts as true the following facts from the complaint: Plaintiff is a computer services franchising business. Its 67 franchises offer repair, consulting, networking, and Internet services. Plaintiff offers its franchisees the use of its trademarks and business system, which includes a 24/7/365 telephone answering service, a dispatch service, and customer service.

In 1998, plaintiff filed and registered “Rescuecom” as its trademark with the United States Patent and Trademark Office. Through great expense and care, plaintiff has become well known and famous in its market and has gained a reputation for excellence and outstanding service to customers and franchisees. As a result, its trademark is a valuable business asset.

Plaintiffs main website’s domain name is Rescuecom.com. Plaintiff conducts a substantial amount of its business over the Internet, and receives an average of 17,000 to 30,000 visitors to its websites each month. Plaintiff advertises over the Internet, and through Google. Because plaintiffs services are computer related its potential franchisees and customers use the Internet to do business and search for goods and services. Plaintiffs famous name and trademark, as well as its reputation for excellence, distinguish its goods and services from its competition and lead potential franchisees and customers to search for Rescuecom Corporation specifically through a variety of means, including Google.

There are two primary ways an Internet user can find a particular company’s website. An Internet user may either guess that the company uses its name or trademark as its domain name, and enter that domain name into an Internet browser, or enter the company’s name or trademark into an Internet search engine such as Google.

Google is located at the domain name Google.com. Defendant claims Google is the most popular search engine on the Internet and that it maintains proprietary, patented, software which lists websites in order of relevance to the Internet user’s search terms. The search results are often voluminous and list thousands of websites.

From an Internet user’s search terms, defendant can ascertain the subject, company, goods, or services in which the Internet user is interested. According to the complaint, “[t]his allows Google to obtain a significant percentage of its profit from the sale of ‘contextual advertising’ space, that *397 is advertising space which allows companies to place their advertising in front of consumers who have already identified themselves as interested in products or services similar to theirs.” One of the programs defendant offers is “AdWords”. Using AdWords, an advertiser can bid on terms (keywords) an Internet user might enter as a search term on Google. Defendant then links the advertisement and hyperlink (sponsored link) to the keyword the advertiser purchased. When an Internet user enters the keyword, it triggers the sponsored link to appear on the search results page either to the right or immediately above the search results. Another program defendant offers is “Keyword Suggestion Tool”, which it uses to recommend keywords to advertisers.

Defendant does not always identify sponsored links as advertisements and it designs those appearing at the top of the search results to look like part of the “non-sponsored” search results. As a result, Internet users may infer, based on a sponsored link’s appearance at the top of the list of search results, that a sponsored link is the most relevant website among the search results. An Internet user can “click” on the sponsored link with a mouse to go to the advertiser’s website. Advertisers pay defendant based on the number of clicks the sponsored link receives.

Rescuecom is an often searched term on the Internet. Plaintiff submits thousands of keywords to defendant, including Res-cuecom, alone and in combination with other words. Consequently, when an Internet user enters Rescuecom into Google as a search term, one of plaintiffs sponsored links appears above or to the right of the search results.

Many of plaintiffs competitors advertise their services on the Internet and have submitted plaintiffs trademark to defendant’s AdWords program as a keyword. Defendant is aware that plaintiff is in the business of computer services franchising and computer service, repair, maintenance, and consulting. Defendant, through its “Keyword Suggestion Tool”, has recommended Rescuecom to plaintiffs competitors as a keyword in order to make plaintiffs competitors’ advertising more successful and to generate more profits for defendant by intercepting and diverting plaintiffs customers and potential customers.

III. DISCUSSION

A. Standard — Rule 12(b)(6)

When considering a motion to dismiss a complaint under Rule 12(b)(6), a court “ ‘must accept as true all of the factual allegations set out in plaintiffs complaint, draw inferences from those allegations in the light most favorable to plaintiff, and construe the complaint liberally.’ ” Gregory v. Daly, 243 F.3d 687, 691 (2d Cir.2001) (quoting Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)). A court may not dismiss an action “unless it appears beyond doubt that the plaintiff can prove no set of facts in support of [its] claim which would entitle [it] to relief.” Conley, 355 U.S. at 45-6, 78 S.Ct. 99. “ ‘[T]he issue is not whether a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the claims.’ ” Todd v. Exxon Corp., 275 F.3d 191, 198 (2d Cir.2001) (quoting

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456 F. Supp. 2d 393, 83 U.S.P.Q. 2d (BNA) 1208, 2006 U.S. Dist. LEXIS 70409, 2006 WL 2811711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rescuecom-corp-v-google-inc-nynd-2006.