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United States Court of Appeals,
Sixth Circuit.
The TAUBMAN COMPANY, Plaintiff-Appellee,
v.
WEBFEATS, a Texas Company and Henry Mishkoff, an individual,
Defendants-
Appellants.
Nos. 01-2648, 01-2725.
Argued: Oct. 16, 2002.
Decided and Filed: Feb. 7, 2003.
Shopping mall owner brought trademark
infringement action against Internet domain name registrant. The United States
District Court for the Eastern District of Michigan, Lawrence P. Zatkoff, Chief
Judge, granted preliminary injunction, and registrant appealed. The Court of
Appeals, Suhrheinrich, Circuit Judge, held that: (1) defendant's use of domain
name was not commercial; (2) even if it was commercial there was no risk of
consumer confusion as to source; and (3) defendant's other cybergriping sites
created no potential for confusion as to source.
Reversed.
West Headnotes
[1] Federal
Courts 95
Although subject-matter jurisdiction can
be challenged at any time, even collaterally after disposition, challenge to
personal jurisdiction must be raised in first responsive pleading or be
waived. Fed.Rules
Civ.Proc.Rules 12(h), 60(b)(4),
28 U.S.C.A.
[2] Trade
Regulation 545
Absent extraordinary circumstances,
non-resident trademark infringement defendant waived any objection to court's
personal jurisdiction by failing to raise issue in his original, pro se
answer. Fed.Rules
Civ.Proc.Rule 12(h), 28 U.S.C.A.
[3] Federal
Courts 815
District court's grant of motion for
preliminary injunction is reviewed for abuse of discretion.
[4] Trade
Regulation 620
Preliminary injunction is proper in
trademark cases where: (1) there is likelihood of success on merits; (2) there
is potential for irreparable harm; (3) there is potential of adverse public
impact; and (4) potential harm to plaintiff outweighs potential harm to
defendant.
[5] Trade
Regulation 134
Lanham Act does not infringe on First
Amendment free speech rights because it only regulates commercial speech, which
is entitled to reduced protection. U.S.C.A.
Const.Amend. 1; Lanham Trade-Mark Act, § 1 et seq., 15
U.S.C.A. § 1051 et seq.
[6] Trade Regulation 136
Lanham Act is strict liability statute; if
consumers are confused by infringing mark, offender's motives are largely
irrelevant. Lanham Trade-Mark Act,
§ 1 et seq., 15
U.S.C.A. § 1051 et seq.
[7] Trade
Regulation 620
Preliminary injunction is proper only to
prevent on-going violation of Lanham Act.
Lanham Trade-Mark Act, § 1 et
seq., 15
U.S.C.A. § 1051 et seq.
[8] Trade
Regulation 350.1
Nearby resident's use of shopping mall's
trademarked name as domain name for website about mall was not
"commercial," and thus not violative of Lanham Act, absent showing
that website was being used in connection with sale of goods; no goods were
sold on website, and there were no advertisements for sellers of goods. Lanham Trade-Mark Act, § 32, 15
U.S.C.A. § 1114.
[9] Trade
Regulation 350.1
Website operator's negotiations with
trademark owner over sale of allegedly infringing domain name did not, without
more, qualify operator's use of mark as "commercial," within meaning
of Lanham Act; there was no evidence operator made habit and business of such practice,
or that his initial intent in selecting mark was to re-sell name. Lanham Trade-Mark Act, § 32, 15
U.S.C.A. § 1114.
[10] Trade
Regulation 350.1
Even if nearby resident's use of shopping
mall's trademarked name as domain name for website about mall was commercial,
there was no Lanham Act violation, absent showing of likelihood of consumer
confusion as to origin of parties' respective products; website contained
conspicuous disclaimer indicating that it was not mall's official website, and
provided hyperlink to official site. Lanham Trade-Mark Act, § 32, 15
U.S.C.A. § 1114.
[11] Trade Regulation 350.1
Cybergriping sites, with domain names
formed by attaching trademarks to
"sucks.com," created no potential for confusion as to source, and
thus were not violative of Lanham Act; rather, use of non-misleading names was
protected free speech. U.S.C.A.
Const.Amend. 1; Lanham Trade-Mark Act, § 32, 15
U.S.C.A. § 1114.
[12] Trade
Regulation 375.1
"Safe distance rule," potentially
applicable when trademark infringer subsequently uses different name for same
product, does not apply when second use is non-commercial critical commentary.
*771
Douglas W. Sprinkle (argued), Julie
A. Greenberg (briefed), Gifford, Krass, Groh,
Sprinkle, Anderson & Citkowski, Birmingham, MI, for Plaintiff-Appellee.
Paul A. Levy (argued and briefed), Public
Citizen Litigation Group, Washington, DC, Webfeats, Carrollton, TX, Henry
Mishkoff, Carrollton, TX, for Defendants-Appellants.
Ann Beeson (briefed), American Civil Liberties
Union Foundation, Reproductive Freedom Project, New York, NY, Michael
J. Steinberg (briefed), Kary L. Moss (briefed),
American Civil Liberties Union Fund of Michigan, Detroit, MI, Kevin S. Bankston
(briefed), ACLU Immigration Rights Project, New York, NY, for Amicus Curiae.
Before:
BOGGS, SUHRHEINRICH and CLAY, Circuit Judges.
OPINION
SUHRHEINRICH, Circuit Judge.
Defendant-Appellant Henry Mishkoff, d/b/a
Webfeats, appeals from two preliminary injunctions, respectively entered on
October 11, 2001, and December 7, 2001, in the United States District Court for
the Eastern District of Michigan, together granting Plaintiff-Appellee the
Taubman Company's (Taubman) request to prevent Mishkoff from using six internet
domain names because they likely violate Taubman's trademarks in the terms
"Taubman," and "The Shops at Willow Bend."
Mishkoff claims two assignments of error. First, he contends that the United States
District Court for the Eastern District *772 of Michigan lacked personal
jurisdiction over him. Second, he claims
that even if jurisdiction was proper, Taubman
is unlikely to succeed on the merits of its trademark claims because it has not
demonstrated that customers would likely be confused between the origin of
Taubman's and Mishkoff's products.
We
reverse the decision of the district court and dissolve both injunctions. We find, first, that Mishkoff has waived any
challenge he might have to the personal jurisdiction of the district court in
the Eastern District of Michigan. Second,
Taubman had failed to demonstrate a likelihood of success on the merits because
Mishkoff's use was not "in connection with the sale or advertising of
goods or services," and there is no likelihood of confusion among
consumers.
I. Facts
Mishkoff
is a resident of Carrollton, Texas, and a web designer by trade. Upon hearing the news that Taubman, a
Delaware corporation with its principal place of business in Michigan, was
building a shopping mall called "The Shops at Willow Bend," in Plano,
Texas, Mishkoff registered the domain name, "shopsatwillowbend.com,"
and created an internet website with that address. Mishkoff had no connection
to the mall except for the fact that it was being built near his home.
Mishkoff's website featured information about
the mall, with a map and links to individual websites of the tenant
stores. The site also contained a
prominent disclaimer, indicating that Mishkoff's site was unofficial, and a link to Taubman's official site for the mall,
found at the addresses "theshopsatwillowbend.com," and
"shopwillowbend.com."
Mishkoff describes his site as a "fan
site," with no commercial purpose.
The site did, however, contain a link to the website of a company run by
Mishkoff's girlfriend, Donna Hartley, where she sold custom-made shirts under
the name "shirtbiz.com;" and to Mishkoff's site for his web design
business, "Webfeats."
When Taubman discovered that Mishkoff had
created this site, it demanded he remove it from the internet. Taubman claimed that Mishkoff's use of the
domain name "shopsatwillowbend.com" infringed on its registered mark,
"The Shops at Willow Bend." Taubman filed a complaint on August 7,
2001, claiming, inter alia, trademark infringement under the Lanham Act,
15
U.S.C. § 1114, asking for a preliminary injunction, and demanding surrender of
Mishkoff's domain name.
Mishkoff responsively registered five more
domain names: 1) taubmansucks.com; 2) shopsatwillowbendsucks.com; 3) theshopsatwillowbendsucks.com; 4) willowbendmallsucks.com; and 5) willowbendsucks.com. All five of these
web names link to the same site, which is a running editorial on Mishkoff's
battle with Taubman and its lawyers, and exhaustively documents his proceedings
in both the district court and this Court, both through visual scans of filed
motions, as well as a first person narrative from Mishkoff. In internet parlance, a web name with a
"sucks.com" moniker attached to it
is known as a "complaint name," and the process of registering and
using such names is known as "cybergriping." [FN1] See, e.g.,
Martha Kelley, Is *773Liabilty
Just a Link Away? Trademark Dilution by
Tarnishment Under the Federal Trademark Dilution Act of 1995 and Hyperlinks on
the World Wide Web,
9 J. Intell. Prop. L. 361, 375 (2002) (defining
"cybergriping"); Ronald F.
Lopez, Corporate
Strategies for Addressing Internet "Complaint" Sites,
14 Int'l L. Practicum 101, 101-02 (Autumn 2001)
(giving examples of different types of "complaint" sites).
FN1. Since the
issuance of the injunctions, Mishkoff has apparently created a sixth
"complaint site," "giffordkrassgrohsprinklesucks.com,"
referencing the law firm representing Taubman on appeal. This domain name was not a part of the
December 7, 2001 preliminary injunction order that enjoined Mishkoff from
maintaining the other "complaint names."
On
October 11, 2001, the district court granted Taubman's motion for a preliminary
injunction, enjoining Mishkoff from using the first host name,
"shopsatwillowbend.com." [FN2] On October
15, 2001, Taubman filed a motion to amend the preliminary injunction to include
the five "complaint names" used by Mishkoff. On December 7, 2001, the district court
allowed the amendment and enjoined Mishkoff from using the complaint names.
FN2. Taubman sought
the injunction under other claims too, including violation of the
Anticybersquatting Act. However, the district court granted the injunction
based only on the Lanham Act claim.
Accordingly, that is the only issue before this Court.
On
November 9, Mishkoff filed a notice of appeal from the October 11 injunction. On December 10, Mishkoff filed a notice of
appeal from the December 7 injunction.
Accordingly, each case is timely before this Court under Fed.
R.App. P. 4(a)(1)(A). The cases have been consolidated on appeal.
II. Personal Jurisdiction
Mishkoff first claims that the United States
District Court for the Eastern District of Michigan lacks personal jurisdiction
over him. He asserts that since he is a
resident of Texas, the websites were created in Texas, and the mall which is
the subject of the websites stands in Texas, a federal court in Michigan cannot
exercise jurisdiction over him as a defendant.
[1] Although Mishkoff
raises serious doubts in our minds about whether the district court properly
held jurisdiction, his motion was ultimately untimely. Although subject-matter
jurisdiction can be challenged at any time, Fed.R.Civ.P.
12(h); see
also Ambrose
v. Welch,
729 F.2d 1084, 1085 (6th Cir.1984), even collaterally after disposition, see Fed.
R.Civ. P. 60(b)(4), a challenge to personal
jurisdiction must be raised in the first responsive pleading or be waived. Fed.R.Civ.P.
12(h)(1); see,
e.g., Reynolds
v. Int'l Amateur Athletic Fed'n,
23 F.3d 1110, 1120 (6th Cir.1994); In
Re Wolverine Radio Co.,
930 F.2d 1132, 1137 n. 5 (6th Cir.1991). Mishkoff did not raise the issue of personal
jurisdiction in his original answer.
[2] Mishkoff asks this
court for leeway, in light of the fact that he was originally litigating this
case pro se. Unfortunately, as the
district court stated, there is no legal basis for so doing. This is not to say that this Court will never
grant leeway to a pro se party, but Mishkoff has not presented the kind of
extraordinary circumstances that would warrant such action. Accordingly, we find that Mishkoff has waived
any challenge to personal jurisdiction.
III. Analysis
Mishkoff claims the injunctions preventing his
use of the domain name
"shopsatwillowbend.com" and the five "complaint
names" are inappropriate because Taubman has not demonstrated a likelihood
of success on the merits and because the orders represent a prior restraint on
his First Amendment right to speak.
*774 A.
Standard of Review
[3] We review the
district court's grant of a motion for a preliminary injunction for abuse of discretion. Marchwinski
v. Howard,
309 F.3d 330, 333 (6th Cir.2002); Blue
Cross & Blue Shield Mut. of Ohio v. Blue Cross & Blue Shield Ass'n,
110 F.3d 318, 322 (6th Cir.1997). "A district court abuses its discretion
when it relies on clearly erroneous findings of fact ... or when it improperly
applies the law or uses an erroneous legal standard. Under this standard, this court must review
the district court's legal conclusions de novo and its factual findings for
clear error." Owner-Operator
Indep. Drivers Ass'n v. Bissell,
210 F.3d 595, 597 (6th Cir.2000).
[4] We have held that an
injunction is proper in trademark cases where:
1) There is a likelihood of
success on the merits;
2) There is the potential for
irreparable harm;
3) There is the potential of
adverse public impact;
4) Potential harm to the
plaintiff outweighs the potential harm to the defendant.
See
Rock
and Roll Hall of Fame and Museum Inc. v. Gentile Prods.,
134 F.3d 749, 753 (6th Cir.1998). None of these factors, standing alone, is a
prerequisite to relief; rather, they
must be balanced. Golden
v. Kelsey- Hayes Co.,
73 F.3d 648, 653 (6th Cir.1996); see also County
Sec. Agency v. Ohio Dep't of Commerce,
296 F.3d 477, 485 (6th Cir.2002).
B. Propriety of the Injunctions
1. Likelihood of Success on the Merits
The likelihood of success of Taubman's claim
rests with the language of the Lanham Act, 15
U.S.C. § 1114(1), which imposes liability for infringement of trademarks
on:
Any person who shall, without
the consent of the registrant
a) use in commerce any
reproduction, counterfeit, copy, or colorable imitation of a registered mark in
connection with the sale, offering for sale, distribution, or advertising of
any goods or services on or in connection with which such use is likely to
cause confusion, or to cause mistake, or to deceive ....
[5] Mishkoff proposes
that, regardless of whether his use of Taubman's marks violates the Lanham Act,
any injunction prohibiting his use violates the Constitution as a prior
restraint on his First Amendment right of Free Speech. Since Mishkoff has
raised Free Speech concerns, we will first explain the interrelation between
the First Amendment and the Lanham Act. First, this Court has held that the
Lanham Act is constitutional. Semco,
Inc. v. Amcast, Inc.,
52 F.3d 108, 111-12 (6th Cir.1995) (stating that
reach of Lanham Act is limited so as to be constitutional); see also Seven-Up
v. Coca-Cola Co.,
86 F.3d 1379, 1383 n. 6 (5th Cir.1996). The Lanham Act is constitutional because it
only regulates commercial speech, which is entitled to reduced protections
under the First Amendment. Central
Hudson Gas & Elec. Corp. v. Public Serv. Comm'n of New York,
447 U.S. 557, 563, 100 S.Ct. 2343, 65 L.Ed.2d 341
(1980) (stating that regulation of commercial speech is subject
only to intermediate scrutiny). Thus, we
must first determine if Mishkoff's use is commercial and therefore within the
jurisdiction of the Lanham Act, worthy of lesser First Amendment protections.
If
Mishkoff's use is commercial, then, and only then, do we analyze his use for a
likelihood of confusion. If Mishkoff's
use is also confusing, then it is misleading commercial speech, and outside the
First *775 Amendment. See 134 Cong. Rec. 31, 851 (Oct. 19, 1988)
(statement of Rep. Kastenmeier) (stating that §
43 of the Lanham Act only affects misleading commercial speech); cf.
Va.
Bd. of Pharmacy v. Va. Citizens Consumer Council, Inc.,
425 U.S. 748, 771 & n. 24, 96 S.Ct. 1817, 48 L.Ed.2d 346 (1976) (stating that misleading commercial speech is not
protected by the First Amendment); Bonito
Boats, Inc. v. Thunder Craft Boats, Inc.,
489 U.S. 141, 157, 109 S.Ct. 971, 103 L.Ed.2d 118 (1989) (stating that a trademark owner has at best a
quasi-property right in his mark, and can only prevent its use so as to
maintain a confusion-free purchasing public) (quoting Crescent
Tool Co. v. Kilborn & Bishop Co.,
247 F. 299, 301(2d Cir.1917) (L.Hand, J.)).
Hence, as per the language of the Lanham Act,
any expression embodying the use of a mark not "in connection with the
sale ... or advertising of any goods or services," and not likely to cause
confusion, is outside the jurisdiction of the Lanham Act and necessarily
protected by the First Amendment.
Accordingly, we need not analyze
Mishkoff's constitutional defenses independent of our Lanham Act analysis. With this backdrop in mind, we proceed to
analyze the nature of the two websites.
a. November 9 Injunction--The "shopsatwillowbend"
Website
In
regard to the first website, "shopsatwillowbend.com," Mishkoff argues
that his use is completely non-commercial and not confusing, and therefore
speech entitled to the full protections of the First Amendment. Taubman offers three arguments that Mishkoff
is using its name commercially to sell or advertise goods or services. First, Mishkoff had a link to a site owned by
Hartley's blouse company, "shirtbiz.com." Second, he had a link to
his own site for his web design company, Webfeats. Third, Mishkoff had accepted a $1000 offer to
relinquish the name to Taubman.
[6] Although Mishkoff
claims his intention in creating his website was non- commercial, the proper
inquiry is not one of intent. Daddy's
Junky Music Stores, Inc. v. Big Daddy's Family Music Center,
109 F.3d 275, 287 (6th Cir.1997). In that sense, the Lanham Act is a strict
liability statute. See éHard
Rock Caf Licensing Corp. v. Concession Servs., Inc.,
955 F.2d 1143, 1152 n. 6 (7th Cir.1992). If consumers are confused by an infringing
mark, the offender's motives are largely irrelevant. Wynn
Oil Co. v. Thomas,
839 F.2d 1183, 1188 (6th Cir.1988) (citing Lois
Sportswear, U.S.A., Inc. v. Levi Strauss & Co.,
799 F.2d 867, 875 (2d Cir.1986)). We believe the advertisements on Mishkoff's site, though extremely minimal,
constituted his use of Taubman's mark "in connection with the
advertising" of the goods sold by the advertisers. This is precisely what the Lanham Act
prohibits.
[7][8] However, Mishkoff
had at least removed the shirtbiz.com link prior to the injunction. A preliminary injunction is proper only to
prevent an on-going violation. See,
e.g. Hecht
Co. v. Bowles,
321 U.S. 321, 329-30, 64 S.Ct. 587, 88 L.Ed. 754 (1944) (recounting the historical role of courts of equity and
stating that purpose of injunctive relief is "to deter, not to
punish"). As long as Mishkoff has
no commercial links on either of his websites, including links to shirtbiz.com,
Webfeats, or any other business, we find no use "in connection with the
advertising" of goods and services to enjoin, and the Lanham Act cannot be
properly invoked. [FN3]
FN3. Mishkoff sent a
letter to Taubaman's attorneys on August 10, 2001, referencing the removal of
the shirtbiz.com link, and declaring that Mishkoff "will not place any
advertising of any kind on the site in the future." It is unclear whether Mishkoff also removed
the Webfeats link at this time. To be
clear, we also find the Webfeats link to be "use in connection with the
advertising of goods and services" which likewise must remain removed to
avoid a finding of commerciality.
*776 [9] Taubman's assertion that its offer to buy the domain name
"shopsatwillowbend.com" from Mishkoff qualifies Mishkoff's use of the
mark as "in connection with the sale of goods" is meritless. Although other courts have held that a
so-called cybersquatter, who registers domain names with the intent to sell the
name to the trademark holder, uses the mark "in connection with the sale
of goods," they have also limited their holdings to such instances where
the defendant had made a habit and a business of such practices. See, e.g., E
& J Gallo Winery v. Spider Webs Ltd.,
286 F.3d 270, 270 (5th Cir.2002) (noting that
defendant had made a business practice of selling domain names on eBay for no
less than $10,000); Panavision
Int'l, L.P. v. Toeppen,
141 F.3d 1316 (9th Cir.1998).
In Panavision, the defendant, Toeppen, purchased and offered to sell the
name "panavision.com" to Panavision for $13,000. Id.
at 1318.
Evidence showed that Toeppen had attempted similar deals with a myriad of
other companies, ranging from Delta Airlines to Eddie Bauer. Id.
at 1319.
The Ninth Circuit found Toeppen's intent to sell the domain name
relevant in determining that his creation of the site was a commercial use of
Panavision's mark. Id.
at 1325.
In contrast, not only has Mishkoff not made a practice of registering
and selling domain names, but he did not even initiate the bargaining process
here. Although Taubman's counsel
intimated at oral argument that Mishkoff had in fact initiated the negotiation
process, correspondence in the record
supports the opposite conclusion, and shows that Taubman first offered Mishkoff
$1000 to relinquish the site on August 16, 2001, and Mishkoff initially
accepted it under threat of litigation.
Hence, this case is distinguishable from Panavision. There is no
evidence that Mishkoff's initial motive in selecting Taubman's mark was to
re-sell the name. Therefore, we hold his
use of the name "shopsatwillowbend.com" is not "in connection
with the sale of goods."
[10] Even if Mishkoff's
use is commercial speech, i.e., "in connection with the sale ... or
advertising of any goods or services," and within the jurisdiction of the
Lanham Act, there is a violation only if his use also creates a likelihood of
confusion among customers. 15
U.S.C. § 1114(1). Moreover, the only important question is whether there is
a likelihood of confusion between the parties' goods or services. Bird
v. Parsons,
289 F.3d 865, 877 (6th Cir.2002). Under Lanham Act jurisprudence, it is
irrelevant whether customers would be confused as to the origin of the
websites, unless there is confusion as to the origin of the respective
products. See also Daddy's
Junky Music Stores,
109 F.3d at 280.
Since
its inception, Mishkoff had always maintained a disclaimer on the website,
indicating that his was not the official website. In Holiday
Inns, Inc. v. 800 Reservation, Inc.,
86 F.3d 619 (6th Cir.1996), we found the
existence of a disclaimer very informative, and held that there was no likelihood of confusion, partly on that basis.
In Holiday
Inns, the plaintiff hotel chain used the
phone number 1- 800-HOLIDAY for its guest room reservation hotline. Holiday Inns claimed a Lanham Act violation
when the defendant company, a business that profited by taking reservations *777
for several hotel chains, used the phone number 1- 800-H0LIDAY (with a zero
instead of an "O") in order to take advantage of any calls misdialed
by customers seeking Holiday Inns' hotline.
We found no Lanham Act violation, partly because the defendant played an
unmistakable disclaimer upon answering each call, explaining that it was
unaffiliated with Holiday Inns, and providing customers with Holiday Inns'
correct phone number. Id.
at 621. We
found that the defendant was, in fact, directing business to Holiday Inns that
otherwise would have been lost, and although some callers chose to do business
with the defendant, others hung up and called Holiday Inns. Had it not been for
defendants' service, Holiday Inns would likely never have recovered many
customers who had misdialed. Id.
at 625.
We
find the analysis here indistinguishable from the disclaimer analysis in Holiday
Inns.
[FN4] Mishkoff has placed a conspicuous
disclaimer informing customers that they had not reached Taubman's official
mall site. Furthermore, Mishkoff placed a hyperlink to Taubman's site within
the disclaimer. We find this measure
goes beyond even what was done by the defendant in Holiday
Inns. There, a customer who reached the
defendant's hotline in error had to hang up
and redial the correct Holiday Inns number. Id. Here, a misplaced customer simply has to click his mouse
to be redirected to Taubman's site.
Moreover, like Holiday
Inns, the customers who stumble upon Mishkoff's
site would otherwise have reached a dead address. They would have received an
error message upon typing "shopsatwillowbend.com," simply stating
that the name was not a proper domain name, with no message relating how to
arrive at the official site. Hence,
Mishkoff's website and its disclaimer actually serve to re-direct lost
customers to Taubman's site that might otherwise be lost. Accordingly, we find no likelihood that a
customer would be confused as to the source of Taubman's and Mishkoff's respective
goods.
FN4. In Holiday
Inns, the defendant did not actually use the
plaintiff's trademark, "Holiday," but used the most common
"misspelling" of it.
Accordingly, we also found no infringement in Holiday
Inns because there was no "use" of
the plaintiff's mark.
b. December 7
Injunction--The "sucks" Site
[11] In regard to
Mishkoff's "complaint site," Taubman claims that Mishkoff's use is
necessarily "in connection with the sale of goods" because his intent
behind the use of the names "taubmansucks.com," et al.,
is to harm Taubman economically.
In Planned
Parenthood Fed'n of Amer., Inc. v. Bucci,
No. 97 Civ. 0629, 1997 WL 133313 (S.D.N.Y. March 24, 1997), aff'd, No.
97-7492, 1998 WL 336163 (2d Cir. Feb.9, 1998),
the defendant usurped the domain name "plannedparenthood.com" and
created a website displaying anti-abortion pictures and pro-life messages in
clear contradiction of the plaintiff's stated mission. Id.
at *1. The court there found that, although not
selling or advertising any goods, the defendant's use of Planned Parenthood's
mark was commercial because he had used plaintiff's mark and attempted to cause
economic harm. Id.
at *4. (noting that Lanham Act is applicable
because "defendant's action in appropriating plaintiff's mark has a
connection to plaintiff's distribution of its services").
Following Planned
Parenthood, Taubman argues that all cybergriping
sites are per se commercial and "in connection with the sale of
goods." However, Planned
Parenthood, as an unpublished district court
opinion, is not binding on this Court, and is nonetheless distinguishable. Even if Mishkoff's use is commercial, it must
*778 still lead to a likelihood of confusion to be violative of the
Lanham Act. 15
U.S.C. § 1114(1). In Planned
Parenthood, the defendant used the
plaintiff's trade name as a domain name, without the qualifying moniker
"sucks," or any other such addendum to indicate that the plaintiff
was not the proprietor of the website.
In contrast, "taubmansucks.com"
removes any confusion as to source. We
find no possibility of confusion and no Lanham Act violation.
We
find that Mishkoff's use of Taubman's mark in the domain name "taubmansucks.com" is purely
an exhibition of Free Speech, and the Lanham Act is not invoked. And although economic damage might be an
intended effect of Mishkoff's expression, the First Amendment protects critical
commentary when there is no confusion as to source, even when it involves the
criticism of a business. Such use is not
subject to scrutiny under the Lanham Act. In fact, Taubman concedes that Mishkoff
is "free to shout 'Taubman Sucks!' from the rooftops...." Brief for
Respondent, at 58. Essentially, this is
what he has done in his domain name. The
rooftops of our past have evolved into the internet domain names of our
present. We find that the domain name is
a type of public expression, no different in scope than a billboard or a
pulpit, and Mishkoff has a First Amendment right to express his opinion about
Taubman, and as long as his speech is not commercially misleading, the Lanham
Act cannot be summoned to prevent it.
2. The Remaining Injunctive Factors
When, as here, a preliminary injunction would
infringe upon a constitutional right, the likelihood of success on the merits
is often the determinative factor. Detroit
Free Press v. Ashcroft,
303 F.3d 681, 710 (6th Cir.2002); Connection
Distrib. Co. v. Reno,
154 F.3d 281, 288 (6th Cir.1998). Even so, the
other three factors also suggest that a preliminary injunction is not
proper. Because Mishkoff is not using
Taubman's mark to peddle competing goods, and because any damages would be
economic in nature and fully compensable monetarily, we find no potential for
irreparable harm to Taubman that should lead us to uphold the injunctions. See Overstreet
v. Lexington- Fayette Urban County Gov't,
305 F.3d 566, 578 (6th Cir.2002) (citing Basicomputer
Corp. v. Scott,
973 F.2d 507, 511 (6th Cir.1992)). Moreover, absent a likelihood of confusion,
we find no negative impact on the public interest caused by Mishkoff's
use. In fact, due to the Free Speech concerns
present, we find the potential for irreparable harm to Mishkoff more likely,
and that the public would be negatively impacted, should we not dissolve
the injunctions. See Overstreet,
305 F.3d at 578 (stating that the potential for
irreparable harm is present when it is constitutional rights that are being
enjoined); see also Connection
Distrib. Co.,
154 F.3d at 288 (stating that the loss of
constitutional rights for even a minimal amount of time constitutes irreparable
harm).
Lastly, although no economic harm will accrue
to Mishkoff should he be prevented from maintaining his sites, there is little potential
harm to Taubman, or any other party, as well, because Mishkoff is not a
competitor in the marketplace.
Accordingly, upon a balancing of the factors for injunctive relief, we
dissolve both injunctions.
[12] Lastly, Taubman
argues that the Safe Distance Rule, a little used tenet which pre-dates the
Lanham Act by nearly twenty years, applies to bar Mishkoff's use of Taubman's
mark on his "complaint site."
The Safe Distance Rule was created to prevent known infringers from
using *779 trademarks whose use by non-infringers would not necessarily
be actionable. See Broderick
& Bascom Rope Co. v. Manoff,
41 F.2d 353 (6th Cir.1930). Taubman insists that since Mishkoff has
infringed its mark on his "shopsatwillowbend.com" site, the Safe
Distance rule can be invoked to curtail his use of "taubmansucks.com,"
even if use of "taubmansucks.com" would not be infringing
otherwise.
In Broderick, Judge Denison stated the Safe Distance Rule as follows:
[The defendants] had organized
and built up a business based upon a fraudulent appropriation of what belonged
to the plaintiff. To permit them to
continue without interruption, and to the full scope of identity permitted to
an honest competitor, would be to preserve for them a good will acquired
through fraud. The due protection of
trade-mark and similar rights requires that a competitive business, once
convicted of unfair competition in a given particular, should thereafter be
required to keep a safe distance away from the margin line-even if that
requirement involves a handicap as compared with those who have not
disqualified themselves.
Id.
at 354.
[FN5] So, in
spite of Taubman's assertions otherwise, the Safe Distance Rule is likewise
founded on a likelihood of confusion standard. The rule simply notes that once
an infringer has confused the public, that confusion is not magically remedied
by a name change. Instead, the confusion
lingers, creating the need for the infringer not only to secure a new non-
infringing name (or other infringing characteristic) for his product, but one
so far removed from any characteristic of the plaintiff so as to put the public
on notice that the two are not related.
FN5. The rule has its
roots even before Broderick. In Coca
Cola Co. v. Gay-Ola Co.,
200 F. 720 (6th Cir.1912), though not referring
to the Safe Distance Rule as such, we held that a soft drink manufacturer, once
found to be infringing on Coca-Cola's trademarks, could no longer continue to
use any mark which might be found to resemble Coca-Cola--namely unmarked red
barrels. This was so even though red
barrels in and of themselves would not constitute infringement of a trademark,
either in 1912 or under the Lanham Act today.
But continued use of the barrels after being found to be an infringer,
would have permitted the defendant to continue to capitalize from confusion
garnered from the earlier infringement. Id.
at 723.
We need not find whether the Safe Distance
Rule has survived the enactment of the Lanham Act, because even if it is still
good law, it does not apply here. First, the Safe Distance Rule has only been
applied in settings where the second use was merely a slight deviation of the
first use and was also commercial. See
Broderick,
41 F.2d at 353-54 (developing Safe Distance Rule
in instance when infringer attempted to change offending use from
"au-tow-line" to "auto-tow-line"); Badger
Meter, Inc. v. Grinnell Corp.,
13 F.3d 1145, 1156 (7th Cir.1994) (applying Safe
Distance Rule to prevent infringer from changing infringing logo in trivial
ways, because such changes would force relitigation of essentially the same
issue). The Safe Distance Rule has never
been applied when the second use is a non-commercial critical commentary, but
only where the second use is a different name for the same product. See, e.g., Tamko
Roofing Prods., Inc. v. Ideal Roofing Co., Ltd.,
282 F.3d 23, 40 (1st Cir.2002) (applying Safe Distance
Rule where infringer simply tried to escape liability by changing infringing
"Heritage Series" to "H-Series"); Broderick,
41 F.2d at 353-54. As stated above, the First Amendment protects
Mishkoff's commentary and criticism, and negates the Safe Distance Rule to any
extent it might otherwise have applied.
Second, the Safe Distance Rule was meant to be
applied only against proven *780 infringers. See Broderick,
41 F.2d at 354 (referring only to persons
"once convicted of unfair competition"); see also, Tamko
Roofing Products,
282 F.3d at 30 (applying Safe Distance Rule only
after defendant had been found in contempt of an injunction); cf.
Prince
of Peace Enters. v. Kwok Shing Import-Export Inc.,
No. C 94-04183, 1997 WL 475699 at *5 (July 8, 1997 N.D.Cal.) (stating that the Safe Distance Rule does not apply where
"one was not 'caught' infringing a trademark"). Mishkoff has not previously been found liable
of infringement, nor in contempt of either injunction. Accordingly, our finding
above that Taubman is not likely to succeed on the merits of the
"shopsatwillowbend.com" claim precludes any further discussion of the
Safe Distance Rule.
IV. Conclusion
For
the foregoing reasons, we REVERSE the decision of the district court and
dissolve both preliminary injunctions preventing Mishkoff from using the domain
name, "shopsatwillowbend.com," and the five "complaint
names" listed above.
319 F.3d 770, 54 Fed.R.Serv.3d 1026, 65
U.S.P.Q.2d 1834, 2003 Fed.App. 0043P
END OF DOCUMENT
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