By Alex Boguniewicz
The rich really do get richer. Last week, a federal magistrate judge awarded Donald Trump $32,000 in a case that pitted the billionaire business tycoon against a 34-year old Brooklyn “domainer”—a speculator in unused domain names that may later be desired by individuals and businesses. While we could write off this suit as yet another chapter in the bizarre canon of Mr. Trump’s litigation history it may indeed have implications for the world of online parody and freedom of speech. The judge’s award sent the message that cybersquatting, even when not done for profit, can cost you big time. But is this really what cybersquatting legislation was meant to protect, and does this case overly restrict online fair use?
Cybersquatting is the act of registering, selling, or using a domain name with intent to profit from another’s trademark. Celebrities such as Kevin Spacey and Bruce Springsteen faced difficulty in reclaiming their names from cybersquatters in early cases. To combat this, Congress passed the Anticybersquatting Consumer Protection Act (ACPA), codified at 15 U.S.C. §1125(d), in 1999. A plaintiff bringing an ACPA claim must essentially show (1) its mark—even if it is a personal name—is distinctive or famous; (2) the defendant’s domain name is identical or confusingly similar to the plaintiff’s mark; and (3) the defendant registered the domain name with the bad faith intent to profit from the plaintiff. The ACPA goes on to list nine nonexclusive factors that the courts may consider in determining whether a person acts in bad faith.
But the courts also must take into consideration genuine First Amendment and fair use defenses. In Mayflower Transit LLC v. Prince, the District Court of New Jersey held that the drafters of the ACPA intended to specifically target those with the bad faith intent to profit. Noncommercial uses of a mark, on the other hand, such as for comment, criticism, parody, or news reporting, were determined to be outside the scope of the act. While the defendant in Mayflower registered a domain that was confusingly similar to the plaintiff’s distinctive trademark, he did not act with bad faith intent to profit by using to website to criticize the plaintiff’s company. Conversely, in PETA v. Doughney, the defendant was not afforded First Amendment protection for creating a parody site under the name peta.org—People Eating Tasty Animals—when he suggested that PETA “settle” or “make an offer.”
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