Seven Words Llc, a California Limited Liability Company v. Network Solutions, a Delaware Corporation

260 F.3d 1089, 2001 Daily Journal DAR 8559, 2001 Cal. Daily Op. Serv. 6985, 2001 U.S. App. LEXIS 18265, 2001 WL 902149
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 13, 2001
Docket99-56909
StatusPublished
Cited by82 cases

This text of 260 F.3d 1089 (Seven Words Llc, a California Limited Liability Company v. Network Solutions, a Delaware Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seven Words Llc, a California Limited Liability Company v. Network Solutions, a Delaware Corporation, 260 F.3d 1089, 2001 Daily Journal DAR 8559, 2001 Cal. Daily Op. Serv. 6985, 2001 U.S. App. LEXIS 18265, 2001 WL 902149 (9th Cir. 2001).

Opinion

McKEOWN, Circuit Judge:

This case stems from the efforts of Seven Words LLC to register sixteen Internet domain names 1 based on the George Carlin “Seven Dirty Words” routine. 2 When Network Solutions, Inc. (“NSI”) refused to register the names, Seven Words brought suit for declaratory and injunctive relief, claiming that NSI’s refusal to register the names infringed its rights under the “liberty of speech” clause of the California Constitution, Article 1, § 2(a).

On NSI’s motion under Federal Rule of Civil Procedure 12(b)(6), the district court dismissed the case. At the time Seven Words appealed, twelve of the sixteen domain names had already been registered to third parties. After the parties filed their briefs on appeal, the remaining four domain names were registered to third parties. We conclude, therefore, that this case is now moot, and it must be dismissed.

BACKGROUND

A. NSI’s Domain Name Registration Service

In the early 1990s, the National Science Foundation (“NSF”), an agency of the federal government, assumed responsibility for coordinating and funding management of the nonmilitary portion of the Internet infrastructure. Thomas v. Network Solutions, Inc., 176 F.3d 500, 504 (D.C.Cir.1999), ce rt. denied, 528 U.S. 1115, 120 S.Ct. 934, 145 L.Ed.2d 813 (2000); 63 Fed.Reg. 31741, 31742 (June 10, 1998). Through a competitive bid process, NSI was selected to provide nonmilitary domain name registration services and entered into a Cooperative Agreement with NSF. Id.; see also Nat’l A-1 Adver., Inc. v. Network Solutions, Inc., 121 F.Supp.2d 156, 161-62 (D.N.H.2000). During the period when the events giving rise to this lawsuit took place, NSI had the exclusive authority to register second-level domain names to the public for four top-level Internet domains: “.com,” “.net,” “.edu,” and “.org.” 3 In prac *1092 tical terms, this exclusivity meant that anyone seeking to register a name under one of those domains could only do so through NSI.

Through its registration service, NSI ensured that no two parties registered the same domain name. For the most part, NSI’s registration process was completely electronic, requiring no human intervention by the company. The application was available on the Internet and was transmitted to NSI by electronic mail. NSI’s system would then compare the requested domain name with all previously registered names. Generally, if the name had not already been assigned to another party, NSI would register it to the applicant for a fee.

In September 1998, NSF transferred responsibility for administering the Cooperative Agreement with NSI to the Department of Commerce. Two months later, in response to a presidential initiative to privatize, increase competition, and promote international participation in the domain name system, the Department of Commerce transferred control of Internet domain names from the government to a private, nonprofit corporation, Internet Corporation for Assigned Names and Numbers (“ICANN”). ICANN was then responsible for overseeing the transition from a sole-registrar to a multiple-registrar system. See Nat'l A-1 Adver., 121 F.Supp.2d at 162-63; 63 Fed.Reg. 31741, 31744, 31749 (June 10, 1998); 63 Fed.Reg. 8826, 8826-27 (Feb. 20, 1998). NSI’s exclusive arrangement ended in June 1999.

B. Seven Words I

Seven Words initially sought to register ten second-level domain names that were based on Carlin’s “Seven Dirty Words” routine. NSI refused to register the names, however, because it had a policy prohibiting registration of domain names containing certain words that it deemed “inappropriate,” including six of Carlin’s “Seven Dirty Words.” 4 As a consequence of this policy, in March 1999, Seven Words filed its first lawsuit against NSI in federal court in the Central District of California, Seven Words LLC v. Network Solutions, Inc., No. 99-02816-SVW (“Seven Words I ”), requesting an injunction ordering registration of the disputed domain names to Seven Words and a declaration that NSI’s policy and the refusal to register the domain names violated Seven Words’s rights under the federal and California Constitutions.

Seven Words thereafter sought registration of six additional domain names, which, like the first ten, were based on Carlin’s “Seven Dirty Words” routine. Again, NSI refused registration. Seven Words therefore sought to amend the complaint in Seven Words I to include the six additional domain names, as well as a claim for damages, but the district court did not rule on the request. Rather, as explained below, then began Seven Words’s hopscotch litigation odyssey from California to New Hampshire and back again. Although the dates of the various rulings are not per se critical to the story, they are provided to assist in keeping the chronology in mind and to give a flavor of how the litigation was intertwined.

In June 1999, NSI’s status as the exclusive registrar expired, and other companies joined NSI in offering domain name registration services in the “.com,” “.net,” “.edu,” and “.org” top-level domains. In anticipation of that change, Seven Words *1093 filed an application for a temporary restraining order (“TRO”), requesting that NSI be enjoined from allowing other domain name registrars to register the contested domain names during the pendency of Seven Words I. Although the district court granted the TRO, it was subsequently discharged and no preliminary injunction issued. NSI tendered control over the disputed domain names to the district court through a Deposit of Domain Name Declaration, under which the domain names could only be released for registration upon order of the Seven Words I court or dismissal of the action.

In this same time frame, the district court learned that there was a related case against NSI pending in federal court in New Hampshire, National A-1 Advertising, Inc. v. Network Solutions, Inc., 121 F.Supp.2d 156 (D.N.H.2000) (“Haberstroh ”). In that case, plaintiff Lynn Haberstroh, who had no connection to Seven Words, sought a declaration that NSI’s refusal to register six domain names violated her constitutional rights. Four of those names were identical to those sought by Seven Words, and Haberstroh, like Seven Words, argued that NSI’s policy of refusing to register the domain names violated the First Amendment.

Recognizing the overlap between the two lawsuits, in May 1999, the district court in California directed NSI to file a motion to transfer Seven Words I to the District of New Hampshire for consolidation with Haberstroh. The district court granted the motion in June 1999, ordered' that the remaining federal claims be transferred to the Haberstroh

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260 F.3d 1089, 2001 Daily Journal DAR 8559, 2001 Cal. Daily Op. Serv. 6985, 2001 U.S. App. LEXIS 18265, 2001 WL 902149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seven-words-llc-a-california-limited-liability-company-v-network-ca9-2001.