Trans Union LLC v. Credit Research, Inc.

142 F. Supp. 2d 1029, 2001 U.S. Dist. LEXIS 3526, 2001 WL 303688
CourtDistrict Court, N.D. Illinois
DecidedMarch 26, 2001
Docket00 C 3885
StatusPublished
Cited by18 cases

This text of 142 F. Supp. 2d 1029 (Trans Union LLC v. Credit Research, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trans Union LLC v. Credit Research, Inc., 142 F. Supp. 2d 1029, 2001 U.S. Dist. LEXIS 3526, 2001 WL 303688 (N.D. Ill. 2001).

Opinion

MEMORANDUM OPINION AND ORDER

MORAN, Senior District Judge.

In this trademark dispute plaintiff Trans Union LLC (“Trans Union”) accuses defendants Credit Research, Inc. (“CRI”) and Credit Bureau of Carmel and Pebble Beach, Inc. (“Credit Bureau”) (collectively “defendants”) of misusing Trans Union’s trademarks on the internet. Trans Union alleges that defendants are displaying the Trans Union logo on their internet web pages and using the Trans Union trade name in their website’s domain names and metatags in violations of federal and state trademark protection laws. Trans Union has now filed a motion for preliminary injunction targeted at defendants’ website. For the reasons set forth below, Trans Union’s motion is granted in part and denied in part.

BACKGROUND

Trans Union is in the credit reporting business. It collects consumer credit information from across the country, maintains that information on a national database known as CRONUS, and sells the information in credit reports and other products. Trans Union controls 35 per cent of the industry, making it one of the three major credit reporting agencies in the country. Its two chief competitors are Experian Information Solutions, Inc. (Ex-pelían) and Equifax, Inc. (Equifax). In connection with its business, Trans Union owns the federally-registered trade name “Trans Union” (trade name) and stylized “TU” logo (logo) (collectively “trademarks” or “marks”).

In 1986, Trans Union’s predecessor entered into a service agreement with CRI, a local credit bureau serving Santa Cruz, San Benito, and Monterey counties of northern California. (CpltExh. 1). CRI subsequently assigned its rights and obligations under the service agreement to Credit Bureau. 1 Under the terms of the contract Credit Bureau supplies Trans Union with credit information from its three-county region in exchange for the ability to access the nationwide credit data stored on Trans Union’s CRONUS network. This arrangement has been beneficial to both parties. Trans Union has been able to rely on Credit Bureau to gather local credit information from its province of the country. Indeed, Trans Union has entered into similar contracts with a number of other local credit bureaus and thereby has been able to assemble a nationwide body of credit information. As for Credit Bureau, it has been able to sell credit reports derived from Trans Union’s CRONUS database to its local customers. Credit Bureau also has used Trans Union to provide billing and other services related to its credit bureau business.

Although the service agreement creates a contractual relationship between the parties, it is silent on the issue of intellectual property rights. Not surprisingly, therefore, issues regarding defendants’ usage of Trans Union’s trademarks have arisen over the years. Soon after entering into the service agreement Trans Union attempted to clarify some of the confusion. In a 1987 letter, Trans Union instructed Credit Bureau that it should “not imply in business stationery any form of ownership by Trans Union,” but, instead, should “use *1036 wording such as ‘affiliated with Trans Union’ or ‘serviced by Trans Union’ ” to describe the business relationship (CpltExh. 2). Trans Union addressed the issue again several years later. In a 1996 letter to all affiliated local bureaus, Trans Union admonished that “in order to avoid a legal misrepresentation of the relationship ... and ... dilution of the Trans Union trademark, CRONUS Bureaus need to be careful about the manner in which they use the Trans Union name.” Trans Union then went on to provide some guidelines regarding how local bureaus could and could not use the Trans Union trade name. Specifically, Trans Union identified certain correct designations (e.g., “Automated with Trans Union,” “Serviced by Trans Union,” “A member of the Trans Union Automated network,” and “Servipg the Trans Union system in [city or state]”) and also cited a number of incorrect designations (e.g., “XYZ Credit Bureau/Trans Union,” “A Franchise of Trans Union,” “Trans Union’s [city] Bureau,” “[eity/state]’s Trans Union bureau,” and “A division of Trans Union”) (CpltExh. 3).

Despite these letters, Credit Bureau continued to use a letterhead that Trans Union found objectionable. In a letter dated March 11, 1998, Trans Union notified Credit Bureau that it was in violation of Trans Union’s trademark rights and demanded that Credit Bureau cease and desist its unlawful conduct (CpltExh. 4). The parties subsequently discussed the matter over the telephone and on April 7, 1998, Trans Union sent a letter to Credit Bureau stating that Trans Union does not permit the local “bureau to make any use of its ‘TU’ logo” and that the only permitted use of the Trans Union trade name “is that which accurately describes the relationship between” the parties, such as “A Credit Bureau Serviced by Trans Union Corporation,” or “A Member Of The Trans Union Corporation Automated Network” (Cplt.Exh. 5). On April 17, 1998, Credit Bureau wrote back to inform Trans Union that it was changing its letterhead to conform with Trans Union’s request (CpltExh. 6).

Foreshadowed by the letterhead dispute, the controversy regarding defendants’ use of Trans Union’s trademarks has now emerged in cyberspace. The focus of the conflict is defendants’ use of the marks on their internet website. 2 Defendants market a variety of different credit products on their website. They sell credit reports derived from information maintained on Trans Union’s CRONUS database, and also market credit reports from Experian and Equifax, as well as merged reports containing information from more than one source. Defendants no doubt view their website as a successful expansion of their marketing efforts. Trans Union, however, believes that defendants have again crossed the line to tread on its intellectual property rights. Specifically, Trans Union claims that defendants’ website abuses its trademarks in three ways. First, Trans Union claims that defendants unlawfully display the Trans Union logo on their web pages. Second, Trans Union criticizes defendants for registering their website under domain names 3 which contain the Trans Union *1037 trade name, including transunioncre-dit.com, transunioncredit.org, transunion-credit.net, creditbureautransunion.com, creditbureautransunion.org, and creditbu-reautransunion.net. Third, Trans Union alleges that defendants illegally use the Trans Union trade name in their website’s metatags. 4

On April 6, 2000, Trans Union sent defendants a cease-and-desist letter regarding their use of the trademarks on the internet (Cplt.Exh. 8). The parties were unable to reach an amicable resolution of their differences and, on June 27, 2000, Trans Union initiated this lawsuit. The eight-count complaint raises federal claims of trademark infringement (count I) and unfair competition (count II) under the Lanham Act, 15 U.S.C. §§ 1114, 1125(a), trademark dilution under the Federal Trademark Dilution Act, 15 U.S.C. § 1125

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Bluebook (online)
142 F. Supp. 2d 1029, 2001 U.S. Dist. LEXIS 3526, 2001 WL 303688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trans-union-llc-v-credit-research-inc-ilnd-2001.