PER CURIAM:
Defendant-Appellant Dauben Inc. appeals the district court’s entry of a preliminary injunction barring the company from, among other things, “[rjegistering, transferring, trafficking, using, or maintaining” the domain names sotherneompany.com and southerncopany.com. Plaintiff-Appel-lee The Southern Company, which holds federal and state trademarks for “SOUTHERN COMPANY” and the domain name southerncompany.com, instituted this action against Dauben Inc. under the Anticybersquatting Consumer Protection Act (“ACPA”), 15 U.S.C. § 1125(d). At the outset of the proceedings, Southern Company filed a motion for a preliminary injunction, which the district court granted in an October 22, 2007 order. Dauben Inc. now challenges the district court’s findings that (1) Southern Company was likely to succeed on the merits because Dauben Inc. registered the domain names with a bad faith intent to profit and (2) there existed a substantial threat that Southern Company would suffer irreparable injury without the preliminary injunction. Because the district court conducted an incomplete analy
sis in its findings of a likelihood of success on the merits and a substantial threat of irreparable injury, we conclude that the district court abused its discretion in granting the preliminary injunction.
I. FACTUAL AND PROCEDURAL BACKGROUND
A. Factual Background
The Southern Company (“Southern”) is a Fortune 500 company that provides energy-related services to consumers throughout the southern United States. It holds the federal, incontestable
mark “SOUTHERN COMPANY” and is the registrant of the domain name southern-company.com.
Dauben Inc. (“Dauben”), a Texas corporation, is the listed registrant of nearly 635,000 domain names. The two challenged domain names, sotherneompa-ny.com and southerncopany.com, are linked to a website that only provides pay-per-click advertising — when an Internet user enters either domain name in her browser, she is directed to a webpage that lists links to the websites of paying advertisers. If the user clicks on any of these links, then the advertiser pays a fee to the website.
See NetQuote, Inc. v. Byrd,
No. 07-CV-00630-DME-MEH, 2008 WL 2552871, at *13 (D.Colo. June 17, 2008) (quoting the defendant’s description of pay-per-click advertising “whereby ‘the advertiser pays each time an internet user “clicks” on the advertiser’s ad and is taken to a page on the advertiser’s website’ ”). The advertising links are related to, among other things, real estate and employment companies in the southern United States. The only connection between this webpage and Southern is that the webpage contains an advertisement link to Georgia Power, a Southern subsidiary.
B. Procedural Background
When Southern learned of Dauben’s use of the two contested domain names, it filed an action under the Uniform Domain Name Dispute Resolution Policy (the “UDRP”) with a World Intellectual Property Organization (the “WIPO”) arbitration panel on May 25, 2007. On August 24, 2007, the WIPO panel ruled in favor of Southern and ordered Dauben to transfer the domain names to Southern.
See Southern Co. v. Tex. Int’l Prop. Assocs.,
Case No. D2007-0773 (WIPO Aug. 24, 2007), http://www.wipo.int/amc/en/domains/ decisions/html/2007/d2007-0773.html. Before the WIPO panel directed Dauben to transfer the domain names, however, Dau-ben filed suit against Southern in a Dallas County justice of the peace court on July 23, 2007. Doing so prevented the transfer of the domain names because the UDRP’s terms provide that if a lawsuit has been commenced concerning the arbitrated domain names, then such a transfer will not be completed until that suit has been resolved.
See
Internet Corp. for Assigned Names and Numbers, UDRP ¶ 4(k) (Oct. 24, 1999), http://www.icann.org/en/udrp/ udrp-policy-24oct99.htm. In the state court action, a jury returned a verdict in favor of Dauben on October 30, 2007.
Before the state court jury returned its verdict, Southern filed the current claim in the United States District Court for the Northern District of Texas on October 5,
2007, alleging that Dauben’s “typosquat-ting”
violates ACPA. Simultaneously, Southern filed a motion for preliminary injunction seeking to prevent Dauben’s continued use of the domain names. Over Dauben’s objections,
the district court granted the motion in an October 22, 2007 order by concluding that all four preliminary injunction prerequisites existed and therefore enjoined Dauben from “[rjegis-tering, transferring, trafficking, using, or maintaining the registration of the domain names, SOTHERNCOMPANY.COM and SOUTHERNCOPANY.COM, or any other domain name that is identical or confusingly similar to any of Plaintiffs SOUTHERN COMPANY marks.” (Order Granting Prelim. Inj. 7.)
In response, Dauben filed a motion for reconsideration. In it, Dauben argued that its employment of the domain names constituted a fair use by pointing to ACPA’s safe harbor provision, which states: “Bad faith intent ... shall not be found in any case in which the court determines that the person believed and had reasonable grounds to believe that the use of the domain name was a fair use or otherwise lawful.” 15 U.S.C. § 1125(d)(1)(B)(ii). According to Dauben, its use fell within this safe harbor because it employed the words “southern” and “company” in their descriptive sense by providing pay-per-click links to companies located in the South, a use allegedly comparable to a yellow pages phone book. Second, Dauben averred that the district court failed to consider the nine factors listed in 15 U.S.C. § 1125(d)(1)(B)(i) to determine whether Dauben possessed a bad faith intent to profit from the domain names and instead improperly relied on the WIPO arbitration panel’s reasoning. And third, Dauben asserted that the district court incorrectly presumed the existence of a threat of irreparable injury based on its finding a likelihood of confusion, which in turn was impermissibly based on the court’s finding the domain names confusingly similar to Southern’s mark. For Southern’s part, it countered that Dauben is not making fair use of common or descriptive words because the misspelled “sothern” and “copany” are not actual words. Southern further claimed that a majority of 15 U.S.C. § 1125(d)(1)(B)(i)’s factors support a finding of bad faith. Finally, Southern did not address Dauben’s assertion that the district court incorrectly determined that a substantial threat of irreparable injury exists.
In denying Dauben’s motion for reconsideration on February 14, 2008, the district court rebuffed all of Dauben’s arguments.
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PER CURIAM:
Defendant-Appellant Dauben Inc. appeals the district court’s entry of a preliminary injunction barring the company from, among other things, “[rjegistering, transferring, trafficking, using, or maintaining” the domain names sotherneompany.com and southerncopany.com. Plaintiff-Appel-lee The Southern Company, which holds federal and state trademarks for “SOUTHERN COMPANY” and the domain name southerncompany.com, instituted this action against Dauben Inc. under the Anticybersquatting Consumer Protection Act (“ACPA”), 15 U.S.C. § 1125(d). At the outset of the proceedings, Southern Company filed a motion for a preliminary injunction, which the district court granted in an October 22, 2007 order. Dauben Inc. now challenges the district court’s findings that (1) Southern Company was likely to succeed on the merits because Dauben Inc. registered the domain names with a bad faith intent to profit and (2) there existed a substantial threat that Southern Company would suffer irreparable injury without the preliminary injunction. Because the district court conducted an incomplete analy
sis in its findings of a likelihood of success on the merits and a substantial threat of irreparable injury, we conclude that the district court abused its discretion in granting the preliminary injunction.
I. FACTUAL AND PROCEDURAL BACKGROUND
A. Factual Background
The Southern Company (“Southern”) is a Fortune 500 company that provides energy-related services to consumers throughout the southern United States. It holds the federal, incontestable
mark “SOUTHERN COMPANY” and is the registrant of the domain name southern-company.com.
Dauben Inc. (“Dauben”), a Texas corporation, is the listed registrant of nearly 635,000 domain names. The two challenged domain names, sotherneompa-ny.com and southerncopany.com, are linked to a website that only provides pay-per-click advertising — when an Internet user enters either domain name in her browser, she is directed to a webpage that lists links to the websites of paying advertisers. If the user clicks on any of these links, then the advertiser pays a fee to the website.
See NetQuote, Inc. v. Byrd,
No. 07-CV-00630-DME-MEH, 2008 WL 2552871, at *13 (D.Colo. June 17, 2008) (quoting the defendant’s description of pay-per-click advertising “whereby ‘the advertiser pays each time an internet user “clicks” on the advertiser’s ad and is taken to a page on the advertiser’s website’ ”). The advertising links are related to, among other things, real estate and employment companies in the southern United States. The only connection between this webpage and Southern is that the webpage contains an advertisement link to Georgia Power, a Southern subsidiary.
B. Procedural Background
When Southern learned of Dauben’s use of the two contested domain names, it filed an action under the Uniform Domain Name Dispute Resolution Policy (the “UDRP”) with a World Intellectual Property Organization (the “WIPO”) arbitration panel on May 25, 2007. On August 24, 2007, the WIPO panel ruled in favor of Southern and ordered Dauben to transfer the domain names to Southern.
See Southern Co. v. Tex. Int’l Prop. Assocs.,
Case No. D2007-0773 (WIPO Aug. 24, 2007), http://www.wipo.int/amc/en/domains/ decisions/html/2007/d2007-0773.html. Before the WIPO panel directed Dauben to transfer the domain names, however, Dau-ben filed suit against Southern in a Dallas County justice of the peace court on July 23, 2007. Doing so prevented the transfer of the domain names because the UDRP’s terms provide that if a lawsuit has been commenced concerning the arbitrated domain names, then such a transfer will not be completed until that suit has been resolved.
See
Internet Corp. for Assigned Names and Numbers, UDRP ¶ 4(k) (Oct. 24, 1999), http://www.icann.org/en/udrp/ udrp-policy-24oct99.htm. In the state court action, a jury returned a verdict in favor of Dauben on October 30, 2007.
Before the state court jury returned its verdict, Southern filed the current claim in the United States District Court for the Northern District of Texas on October 5,
2007, alleging that Dauben’s “typosquat-ting”
violates ACPA. Simultaneously, Southern filed a motion for preliminary injunction seeking to prevent Dauben’s continued use of the domain names. Over Dauben’s objections,
the district court granted the motion in an October 22, 2007 order by concluding that all four preliminary injunction prerequisites existed and therefore enjoined Dauben from “[rjegis-tering, transferring, trafficking, using, or maintaining the registration of the domain names, SOTHERNCOMPANY.COM and SOUTHERNCOPANY.COM, or any other domain name that is identical or confusingly similar to any of Plaintiffs SOUTHERN COMPANY marks.” (Order Granting Prelim. Inj. 7.)
In response, Dauben filed a motion for reconsideration. In it, Dauben argued that its employment of the domain names constituted a fair use by pointing to ACPA’s safe harbor provision, which states: “Bad faith intent ... shall not be found in any case in which the court determines that the person believed and had reasonable grounds to believe that the use of the domain name was a fair use or otherwise lawful.” 15 U.S.C. § 1125(d)(1)(B)(ii). According to Dauben, its use fell within this safe harbor because it employed the words “southern” and “company” in their descriptive sense by providing pay-per-click links to companies located in the South, a use allegedly comparable to a yellow pages phone book. Second, Dauben averred that the district court failed to consider the nine factors listed in 15 U.S.C. § 1125(d)(1)(B)(i) to determine whether Dauben possessed a bad faith intent to profit from the domain names and instead improperly relied on the WIPO arbitration panel’s reasoning. And third, Dauben asserted that the district court incorrectly presumed the existence of a threat of irreparable injury based on its finding a likelihood of confusion, which in turn was impermissibly based on the court’s finding the domain names confusingly similar to Southern’s mark. For Southern’s part, it countered that Dauben is not making fair use of common or descriptive words because the misspelled “sothern” and “copany” are not actual words. Southern further claimed that a majority of 15 U.S.C. § 1125(d)(1)(B)(i)’s factors support a finding of bad faith. Finally, Southern did not address Dauben’s assertion that the district court incorrectly determined that a substantial threat of irreparable injury exists.
In denying Dauben’s motion for reconsideration on February 14, 2008, the district court rebuffed all of Dauben’s arguments. First, although acknowledging that Dauben raised the applicability of ACPA’s safe harbor, the district court neglected to address this provision anywhere in its analysis. Second, it dismissed Dau-ben’s claim that the court failed to consider ACPA’s bad faith factors because “[t]he most important grounds for finding bad
faith ‘are the unique circumstances of the case, which do not fit neatly into specific factors enumerated by Congress but may nevertheless be considered under the statute.’ ” (Order Den. Mot. for Recons. 4 (quoting
Sporty’s Farm L.L.C. v. Sportsman’s Market, Inc.,
202 F.3d 489, 499 (2d Cir.2000)).) And third, the court stated that it correctly concluded that Southern would suffer irreparable injury were the preliminary injunction not granted.
Subsequently, Dauben filed this timely appeal, and while this appeal was pending, consideration of the merits continued below. On April 18, 2008, both Dauben and Southern filed motions for summary judgment. The district court granted summary judgment in Southern’s favor on August 11, 2008. To structure the appropriate remedy, the district court sought supplemental briefing, which it received on September 15, 2008. Since then, however, the court has yet to issue its final judgment and remedy. Based on the success of its motion for summary judgment, Southern filed with this court a motion to declare the appeal moot, which has been carried with the case.
II. DISCUSSION
We first address Southern’s motion to declare the appeal moot. After denying the motion, we then turn to the consideration of the district court’s order granting the preliminary injunction.
A. Dauben’s Appeal Is Not Moot
Dauben’s appeal from the district court’s grant of a preliminary injunction is not moot because, despite the district court’s summary judgment in favor of Southern, the court has yet to issue a final judgment and permanent injunction.
As Southern recognizes in its motion, “ ‘[o]nce an order granting a permanent injunction is entered, the order granting the preliminary injunction is merged with it, and an appeal is proper only from the order granting the permanent injunction.’ ” (Mot. to Declare Appeal Moot 1 (quoting
La. World Exposition, Inc. v. Logue,
746 F.2d 1033, 1038 (5th Cir.1984));
see also FTC v. Assail, Inc.,
98 Fed.Appx. 316, 317 (5th Cir.2004) (“While [appellant]'s appeal was pending, the district court converted the preliminary injunction into a permanent injunction and entered a final judgment. The district court’s grant of a permanent injunction rendered this particular appeal [concerning the preliminary injunction] moot.”).) Here, however, the district court has not entered a permanent injunction or a final judgment despite having decided this case’s merits. While the district court found that “injunctive relief and statutory damages are appropriate,” it also stated that “[t]hose remedies will be included in the final judgment
when it issues.”
(Order Granting Summ. J. 15 (emphasis added).) This language makes clear that the court’s order did not impose a permanent injunction and that such relief will come along at some time in the future. We are not persuaded by Southern’s claim that the district court’s stated intention to grant a permanent injunction in the future equates to the actual issuance of such a remedy. Additionally, as Dau-ben contends, the exact language of the permanent injunction is unknown and may vary from the language of the preliminary injunction. With a proper controversy before us, we now turn to Dauben’s appeal from the order granting the preliminary injunction.
B. The Preliminary Injunction Should Be Vacated
We conclude that the district court abused its discretion by conducting an incomplete analysis of Southern’s likelihood to succeed on the merits and of the exis
tence of a substantial threat of irreparable injury to Southern absent the preliminary injunction.
“A preliminary injunction is an extraordinary remedy and should be granted only if the movant has clearly carried the burden of persuasion with respect to all four factors.”
Allied Mktg. Group, Inc. v. CDL Mktg., Inc.,
878 F.2d 806, 809 (5th Cir.1989). The required four factors are: “(1) a substantial likelihood of success on the merits; (2) a substantial threat that plaintiff will suffer irreparable injury if the injunction is denied; (3) that the threatened injury outweighs any damage that the injunction might cause [the] defendant ]; and (4) that the injunction will not disserve the public interest.”
Sugar Busters LLC v. Brennan,
177 F.3d 258, 265 (5th Cir.1999). The ultimate decision to grant or deny a preliminary injunction is reviewed for an abuse of discretion.
Paulsson Geophysical Servs., Inc. v. Sigmar,
529 F.3d 303, 306 (5th Cir.2008);
Hoover v. Morales,
164 F.3d 221, 224 (5th Cir.1998) (“[T]he ultimate decision whether to grant or deny a preliminary injunction is reviewed only for abuse of discretion. ...”). An abuse of discretion occurs when a district court “(1) relies on clearly erroneous factual findings; (2) relies on erroneous conclusions of law; or (3) misapplies the law to the facts.”
McClure v. Ashcroft,
335 F.3d 404, 408 (5th Cir.2003).
Here, Dauben’s first two arguments center on the district court’s conclusion that Southern is likely to succeed on the merits. Dauben’s final argument focuses on the court’s determination that there exists a substantial threat that Southern will suffer irreparable injury if the preliminary injunction is not granted.
We address these arguments in turn.
1. Likelihood Of Success On The Merits
In order to prevail on the merits of an ACPA claim, Southern must show that (1) its mark “is a distinctive or famous mark entitled to protection”; (2) Dauben’s “domain names are ‘identical or confusingly similar to’ [Southern]’s mark”; and (3) Dauben “registered the domain names with the bad faith intent to profit from them.”
See Shields,
254 F.3d at 482 (quoting 15 U.S.C. § 1125(d)(1)(A)).
Dauben’s arguments focus on the district court’s finding of bad faith intent to profit.
The statute sets forth a nonexhaustive list of nine factors for the court to consider in determining whether a defendant registered a domain name with a bad faith
intent to profit.
See
15 U.S.C. § 1125(d)(1)(B)(i) (“In determining whether a [defendant] has a bad faith intent described under subparagraph (a), a court may consider factors such as, but not limited to [the nine listed factors].... ”);
Shields,
254 F.3d at 484 (“Section 1125(d)(1)(B)(i) provides a non-exhaustive list of nine factors ... to consider when making this determination.”). Additionally, there can be no bad faith intent where ACPA’s fair use safe harbor applies: “Bad faith intent described under subparagraph (A) shall not be found in any case in which the court determines that the [defendant] believed and had reasonable grounds to believe that the use of the domain name was a fair use or otherwise lawful.” 15 U.S.C. § 1125(d)(1)(B)(ii);
see also E. & J. Gallo Winery v. Spider Webs Ltd.,
286 F.3d 270, 275 (5th Cir.2002). Fair use is defined as “a use, otherwise than as a mark, ... of a term or device which is descriptive of and used fairly and in good faith only to describe the goods or services of such party, or their geographic origin.” 15 U.S.C. § 1115(b)(4).
In finding Dauben’s bad faith intent, the district court stated:
[l]t is clear to the Court that [Dauben] adopted the SOUTHERN COMPANY [m]ark and domain name, so as to divert mistyping Internet users looking for [Southern]’s website to [Dauben]’s sites, where [Dauben] gets paid every time a user clicks on a hyperlink. In addition, the Court finds the WIPO arbitration panel’s finding of bad faith in this case persuasive.
(Order Granting Prelim. Inj. 5.) In response to Dauben’s assertion that it failed to apply ACPA’s factors and that it erroneously relied on the WIPO panel, the district court wrote: “The most important grounds for finding bad faith ‘are the unique circumstances of the case, which do not fit neatly into the specific factors enu
merated by Congress but may nevertheless be considered under the statute.’ ” (Order Den. Mot. for Recons. 4 (quoting
Sporty’s Farm,
202 F.3d at 499).)
In challenging the district court’s finding of bad faith, Dauben first argues that the district court erred by failing to consider all of ACPA’s factors. We decline to impose such a formalistic requirement.
See Virtual Works, Inc. v. Volkswagen of Am., Inc.,
238 F.3d 264, 269 (4th Cir.2001) (“We need not, however, march through the nine factors seriatim because the ACPA itself notes that use of the listed criteria is permissive.”).
“ ‘The factors are given to courts as a guide, not as a substitute for careful thinking about whether the conduct at issue is motivated by bad faith intent to profit.’ ”
Lamparello v. Falwell,
420 F.3d 309, 319-20 (4th Cir.2005) (quoting
Lucas Nursery & Landscaping, Inc. v. Grosse,
359 F.3d 806, 811 (6th Cir.2004)). Relatedly, Dauben argues that the district court erred by relying on the WIPO arbitration panel’s finding of bad faith and on a reference to the case’s unspecified “unique circumstances.” Dauben’s arguments point to what is an abbreviated consideration by the district court of the criteria for finding a bad faith intent to profit. First, while referring to a WIPO panel may not, itself, be error, courts should recognize that the UDRP standards applied by such a panel often do not mirror the standards under ACPA.
See Barcelona.com, Inc. v. Excelentisimo Ayuntamiento De Barcelona,
330 F.3d 617, 626 (4th Cir.2003) (“[B]ecause a UDRP decision is susceptible of being grounded on principles foreign or hostile to American law, the ACPA authorizes reversing a[n] [arbitration] panel decision if such a result is called for by application of the Lanham Act.”);
Sallen v. Corinthians Licenciamentos LTDA,
273 F.3d 14, 28 (1st Cir.2001) (“[A] federal court’s interpretation of the ACPA supplants a WIPO panel’s interpretation of the UDRP.... ”). Second, just as ACPA’s list of factors is no substitute for careful thinking about whether bad faith exists, so too is a reference to a case’s unique circumstances without any explanation of what those circumstances are, let alone how they evidence bad faith. A court would be best served by considering the existence of bad faith in light of ACPA’s guiding factors and by describing, where applicable, what additional circumstances demonstrate bad faith, particularly in light of the extraordinary nature of the preliminary injunction remedy. While the district court here failed to do that, its stated reasoning in concluding that bad faith exists is arguably encompassed in one or more of ACPA’s factors; thus, we would be hard pressed to conclude that the court abused its discretion based only on this argument. But, Dauben’s next challenge to the method of the court’s bad faith analysis points up a further problem in the district court’s conclusion.
Dauben secondly argues that the district court abused its discretion by omitting any consideration of ACPA’s fair use provision, which affects the bad faith finding, and we
agree.
Though ACPA explicitly provides a fair use safe harbor, the district court made no reference to this portion of ACPA in its analysis despite recognizing Dauben’s invocations of the defense. ACPA’s safe harbor provides a narrow berth for fan’ use arguments, and, on the merits, Dauben’s claims may or may not hold up.
See Virtual Works, Inc.,
238 F.3d at 270 (“A defendant who acts even partially in bad faith in registering a domain name is not, as a matter of law, entitled to benefit from the Act’s safe harbor provision.”). Nonetheless, where one is raised, a fair use defense bears on the likelihood of success on the merits.
See, e.g., NXIVM Corp. v. Ross Inst.,
364 F.3d 471, 477 (2d Cir.2004) (affirming the denial of a preliminary injunction in a copyright infringement action because “the doctrine of fair use still defeats any likelihood of plaintiffs’ success on the merits”);
Elvis Presley Enters.,
349 F.3d at 627 (affirming grant of a preliminary injunction in a copyright infringement action because defendant’s fair use arguments were unavailing);
eAcceleration Corp. v. Trend Micro, Inc.,
408 F.Supp.2d 1110, 1123 (W.D.Wash.2006) (denying preliminary injunction in a trademark infringement suit because the plaintiff “has not met its burden of demonstrating that there is a likelihood of success on the merits ... particularly given the strength of [defendant]^ fair use defense”). By failing to analyze this segment of the law pertinent to the parties’ claims, the district court abused its discretion.
Southern asserts that Dauben’s fair use argument lacks merit because Dauben offered no evidence of “its business or about its intent in registering” the domain names and because Dauben cannot make a fair use of misspelled variations of SOUTHERN COMPANY.
As to the former argument, we are unpersuaded because the district court had before it evidence concerning the content of the websites to which Dauben’s domain names linked. As to Southern’s latter argument, Dauben’s using misspelled variations of “southern” and “company” (that is, “sothern” and “co-pany”) certainly may weaken its fair use argument,
but that is a question to be
considered in the district court’s evaluation of the facts and circumstances surrounding the claim — an evaluation that the court below failed to undertake.
2. Irreparable Injury
Dauben next contends that the district court erred in concluding there exists a substantial threat that Southern will suffer irreparable injury were the preliminary injunction denied. In its order granting the preliminary injunction, the court reasoned that this threat exists because “[ejs-tablishing a strong likelihood of confusion in the consumer’s mind ‘almost inevitably establishes irreparable harm’ ” and because “[Southernj’s evidence establishes the danger of confusion and loss of [South-ernj’s good will as a result of consumer confusion.” (Order Granting Prelim. Inj. 6 (quoting
Church of Scientology Int’l v. Elmira Mission of the Church of Scientology,
794 F.2d 38, 42 (2d Cir.1986)).) In denying Dauben’s motion for reconsideration, the district court described the evidence that led to finding a strong likelihood of confusion:
The Court has already determined that [Daubenj’s utilization of the subject domain names is “identical or confusingly similar to” [Southernj’s mark insofar as the names are actually identical, letter for letter, but for the subtraction of one letter in each domain. The Court does not find it hard to find that a consumer could be confused as to the sponsorship of the Defendant’s domain names because of then* stark similarity to [South-ernj’s domain name, thus causing irreparable harm.
(Order Den. Mot. for Recons. 5.) To summarize, the district court found a likelihood of confusion because Dauben’s domain names are confusingly similar to Southern’s mark and, accordingly, may confuse a consumer as to the sponsorship of the websites linked to by the challenged domain names. This consumer confusion, in turn, threatens irreparable injury to Southern.
The court’s determination is flawed for two reasons. First, the likelihood of confusion test in trademark infringement law is different, and more comprehensive, than the test for “confusingly similar” under ACPA.
See N. Light Tech., Inc. v. N. Lights Club,
236 F.3d 57, 66 n. 14 (1st Cir.2001) (“[Tjhe likelihood of confusion test of trademark infringement is more comprehensive than the identical or confusingly similar requirement of ACPA, as it requires considering factors beyond the facial similarity of the two marks.” (internal quotation marks omitted));
see also Coca-Cola Co.,
382 F.3d at 783 (“The inquiry under the ACPA is thus narrower than the traditional multifactor likelihood of confusion test for trademark infringement.”);
Sporty’s Farm,
202 F.3d at 498 n. 11 (“We note that ‘confusingly similar’ is a different standard from the ‘likelihood of confusion’ standard for trademark infringement. .. ,”).
Second, the court failed to describe how Dauben’s confusingly similar domain names would injure Southern, let alone do so irreparably. Courts making this finding often describe how the content of a defendant’s website threatens injury to the plaintiff.
See, e.g., Audi AG v. D Amato,
469 F.3d 534, 550 (6th Cir.2006) (stating that without an injunction “Audi would be irreparably harmed by consumers on [defendant]'s site purchasing counterfeit items, instead of those that were lawfully sold by Audi”);
Coca-Cola Co.,
382 F.3d at 789 (“The district court did not clearly err in finding that plaintiffs would be irreparably harmed by [defendant’s continued ... use of the [confusingly similar] domain names to display pictures of dismembered aborted fetuses and by the links to fund-raising appeals that did not originate from the plaintiffs.”);
Shields,
254 F.3d at 486 (concluding that the district court properly determined that a likelihood of confusion threatened irreparable injury because “[plaintiff] does not want his audience trapped in [Defendant’s sites” by defendant’s practice of “mousetrapping” — the trapping of Internet users in a succession of pop-up advertisements). Here, however, the district court pointed only to the likelihood that a consumer might accidentally come across Dauben’s websites when seeking Southern’s website, but it made no finding bearing on
how
this navigational miscue might injure Southern. Southern contends that the court properly determined that “[plaintiffs evidence establishes ... a significant risk of irreparable injury.” However, the court made clear that the only evidence it considered was Dauben’s domain names and their similarity to Southern’s mark. The court made no finding beyond the text of the domain names — such as the content of Dauben’s websites — that suggests Southern may be irreparably harmed. For these two reasons, the district court abused its discretion in its analysis of whether there exists a threat of irreparable injury to Southern.
C. Remand Is Unnecessary
Having concluded that the district court abused its discretion in conducting an incomplete analysis of Southern’s motion for preliminary injunction, we vacate the court’s order. We do not remand the issue for further consideration primarily because the district court sits primed to issue a final judgment and remedy in this action. The district court has decided the merits of this claim in its order granting Southern’s summary judgment, and it has the benefit of having received additional briefing on how best to structure the remedy in this case. At oral argument, the parties confirmed that all that remains below is for the district court to issue a final judgment and remedy — the latter likely in the form of a permanent injunction. Because a permanent injunction will supercede the preliminary injunction, we will not delay the proceedings any further by remanding the matter of the preliminary injunction. We further emphasize that our ruling today in no way intimates how this court might view the merits of Southern’s claims.
III. CONCLUSION
For the above reasons, the district court’s order granting the preliminary in
junction is VACATED. Pending motion DENIED.