Shields v. Zuccarini

254 F.3d 476, 2001 WL 671607
CourtCourt of Appeals for the Third Circuit
DecidedJune 15, 2001
Docket00-2236
StatusUnknown
Cited by33 cases

This text of 254 F.3d 476 (Shields v. Zuccarini) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shields v. Zuccarini, 254 F.3d 476, 2001 WL 671607 (3d Cir. 2001).

Opinion

OPINION OF THE COURT

ALDISERT, Circuit Judge.

John Zuccarini appeals from the district court’s grant of summary judgment and award of statutory damages and attorneys’ fees in favor of Joseph Shields under the new Anticybersquatting Consumer Protection Act (“ACPA” or “Act”). In this case of first impression in this court interpreting the ACPA, we must decide whether the district court erred in determining that registering domain names that are intentional misspellings of distinctive or famous names constitutes unlawful conduct under the Act. We must decide also whether the district court abused its discretion by assessing statutory damages of $10,000 per domain name. Finally, we must decide whether the court erred in awarding attorneys’ fees in favor of Shields based on its determination that this case qualified as an “exceptional” case under the ACPA. We affirm the judgment of the district court.

The district court had jurisdiction pursuant to 28 U.S.C. § 1331. This court has jurisdiction by virtue of 28 U.S.C. §§ 41 and 1291.

I.

Shields, a graphic artist from Alto, Michigan, creates, exhibits and markets cartoons under the names “Joe Cartoon” and “The Joe Cartoon Co.” His creations include the popular “Frog Blender,” “Micro-Gerbil” and “Live and Let Dive” animations. Shields licenses his cartoons to others for display on T-shirts, coffee mugs and other items, many of which are sold at gift stores across the country. He has marketed his cartoons under the “Joe Cartoon” label for the past fifteen years.

On June 12, 1997, Shields registered the domain name joecartoon.com, and he has operated it as a web site ever since. Visitors to the site can download his animations and purchase Joe Cartoon merchandise. Since April 1998, when it won “shock site of the day” from Macromedia, Joe Cartoon’s web traffic has increased exponentially, now averaging over 700,000 visits per month.

In November 1999, Zuccarini, an Andalusia, Pennsylvania “wholesaler” of Internet domain names, 1 registered five world *480 wide web variations on Shields’s site: joescartoon.com, joecarton.com, joescar-tons.com, joescartoons.com and cartoon-joe.com. Zuccarini’s sites featured advertisements for other sites and for credit card companies. Visitors were trapped or “mousetrapped” in the sites, which, in the jargon of the computer world, means that they were unable to exit without clicking on a succession of advertisements. Zuc-earini received between ten and twenty-five cents from the advertisers for every click.

In December 1999, Shields sent “cease and desist” letters to Zuecarini regarding the infringing domain names. Zuecarini did not respond to the letters. Immediately after Shields filed this suit, Zuecarini changed the five sites to “political protest” pages and posted the following message on them:

This is a page of POLITICAL PROTEST
—Against the web site joecartoon.com—
joecartoon.com is a web site that depicts the mutilation and killing of animals in a shockwave based cartoon format — many children are inticed [sic] to the web. site, not knowing what is really there and then encouraged to join in the mutilation and killing through use of the shockwave cartoon presented to them.
—Against the domain name policys [sic] of ICANN—
—Against the Cyberpiracy Consumer Protection Act—
As the owner of this domain name, I am being sued by joecartoon.com for $100,000 so he can use this domain to direct more kids to a web site that not only desensitizes children to killing animals, but makes it seem like great fun and games.
I will under no circumstances hand this domain name over to him so he can do that.
I hope that ICANN and Network Solutions will not assist him to attaining this goal.
—Thank You—

Shields v. Zuecarini, 89 F.Supp.2d 634, 635-636 (E.D.Pa.2000).

Shields’s Complaint invoked the ACPA as well as federal and state unfair competition law and sought injunctive relief, statutory damages and attorneys’ fees. The Complaint originally named Network Solutions, Inc. and the Internet Corporation for Assigned Names and Numbers as defendants, but on February 11, 2000, Shields filed a voluntary notice of dismissal with respect to these defendants.

On March 17, 2000, the district court denied Shields’s Motion for Summary Judgment, 2 holding that Zuecarini had raised a material issue of fact under the ACPA. After affording the parties a brief time for expedited discovery, the court *481 held a hearing on Shields’s request for injunctive relief. On March 22, 2000, the court entered a preliminary injunction in favor of Shields, which required Zuccarini to transfer the infringing domain names to Shields and to refrain from “using or abetting the use of’ the infringing domain names or any other domain names substantially similar to Shields’s marks.

On May 2, 2000, Shields filed a Renewed Motion for Summary Judgment. Zuccari-ni filed no response. On June 5, 2000, the court entered an Order granting summary judgment in favor of Shields, holding that Zuccarini had registered five variations of Shields’s name willfully, in bad faith, and in violation of the Act. On June 16, 2000, Shields filed a Motion for Attorneys’ Fees and Costs pursuant to 15 U.S.C. § 1117(a): Zuccarini opposed the Motion contending that his conduct did not rise to the level of exceptional circumstances and that the injunction provided Shields with adequate relief.

On July 18, 2000, the district court entered an Order and Judgment awarding statutory damages in the amount of $10,000 for each infringing domain name and attorneys’ fees and costs in the amount of $39,109.46. Zuccarini filed a timely Notice of Appeal on July 26, 2000.

II.

We conduct plenary review of a grant of summary judgment, applying the same standard as the district court. Watson v. Eastman Kodak Co., 235 F.3d 851, 854 (3d Cir.2000). “Summary judgment is properly granted if ‘the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.’ ” Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (quoting Rule 56(c), Federal Rules of Civil Procedure).

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