Media Law BULLETIN October 2005 Pray It’s Not Just Another Complaint, But A Legitimate E-Gripe We’ve all reached a point in our lives when we wanted to gripe about something, or in this case someone. Sometimes you just have to appeal to the right audience before you can get heard. For Christopher Lamparello, the right audience was the Fourth Circuit Court of Appeals in the case entitled Lamparello v. Falwell.1 Reverend Jerry Falwell a “nationally known minister” and owner of <www. Falwell.com> and of the common law trademarks “Jerry Falwell” and “Falwell,” gave an interview “in which he expressed opinions about gay people and homosexuality” that offended Lamparello.2 On February 1, 1999, Lamparello responded by registering the domain name <www. fallwell.com>, and implementing his own website where he could voice his opinions of Falwell’s “untruths about gay people.”3 Lamparello’s website did not sell any goods or services and it also contained a disclaimer on the homepage indicating the website was not affiliated with Falwell.4 Although Lamparello’s e-gripe site had “no measurable impact” on the amount of attendees of Reverend Falwell’s e-church, Falwell sent Lamparello two letters demanding that Lamparello cease and desist using any variation of “Falwell” as a domain name.5 Lamparello filed a declaratory relief action against Falwell and his ministries in the U.S. District Court for the Eastern District of Virginia. Falwell filed a counter-claim [ Highlighting legal issues affecting the media and entertainment industries ] alleging trademark infringement,6 false designation of origin,7 state and federal unfair competition, and cybersquatting under the AntiCybersquatting Consumer Protection Act8 (“ACPA”).9 The district court sided with Falwell on summary judgment, and enjoined Lamparello from using Falwell’s mark. The court also ordered Lamparello to transfer the domain name to Falwell.10 Lamparello took the matter up with the Fourth Circuit and filed a timely appeal. The Fourth Circuit reversed, finding the district court’s opinion unsupportable.11 The Fourth Circuit stated that to prevail under either the Lanham Act claim or the false designation of origin claim, Falwell had to establish that: 1) he possessed a mark; 2) Lamparello used the mark; 3) Lamparello’s use of the mark occurred “in commerce”; 4) Lamparello’s use of the mark was “in connection with the sale, offering for sale, distribution or advertising” of goods or services; and 5) Lamparello used the mark in a manner likely to confuse consumers.12 Lamparello argued that the Fourth Circuit should follow the Sixth and Ninth Circuit’s views that the Lanham Act should only be applied to commercial speech to prevent unconstitutional censorship.13 However, the Fourth Circuit did not address this issue and decided instead that Falwell could not establish a likelihood of confusion.14 The Court noted that Lamparello could not be liable unless his use of the mark caused a likelihood of confusion as to the source of Lamparello’s website. The Court stated that seven factors were helpful in determining whether a likelihood of confusion exists: 1) strength of Falwell’s mark; 2) similarity of the marks; 3) similarity of the goods/ services the marks identify; 4) similarity of the facilities used by the parties; 5) similarity of the advertising used by the parties; 6) Lamparello’s intent; and 7) actual confusion.15 In applying the factors, the Court held that Falwell’s mark is distinctive and that Lamparello’s website closely resembled the mark. However, the Court noted that the two websites did not bear any resemblance to each other. The Court also placed substantial weight on the fact that Falwell and Lamparello did not offer similar goods or services.16 While Falwell’s site offered spiritual and political views, Lamparello’s site criticized those views. The Court cited to the Ninth Circuit for the principal that “[n]o one would believe that Reverend Falwell sponsored a site criticizing himself, his positions, and his interpretation of the bible.”17 Furthermore, the Court found that the people visiting Lamparello’s website “quickly realized” that Falwell was not the source of the content therein.18 As a result, the Court found that there was no likelihood of confusion between Lamparello’s and Falwell’s websites.19 [ 2 ] October 2005 Media Law Bulletin Sedgwick, Detert, Moran & Arnold LLP San Francisco Zurich [ www.sdma.com ] © 2005 Sedgwick, Detert, Moran & Arnold LLP Paris Media Law Bulletin is published by Sedgwick, Detert, Moran & Arnold LLP and affiliated entities. For copies of the cited cases, or any other assistance, please contact James J.S. Holmes, Esq. or John F. Stephens, Esq. at (213) 426-6900 or send an E-mail to james.holmes@sdma.com or john.stephens@sdma.com. Orange County Lamparello v. Falwell, 2005 U.S. App. LEXIS 18156 (4th Cir. 2005). 2 Id. at 2. 3 Id. at 2-3. 4 Id. at 3-4. 5 Id. at 4. 6 15 U.S.C. § 1114 (200) 7 15 U.S.C. § 1125(a). 8 15 U.S.C. § 1125(d). 9 Falwell, 2005 U.S. App. LEXIS 18156 at 4. Newark 1 This communication is published as an information service for clients and friends of the firm and is made available with the understanding that it does not constitute the rendering of legal advice or other professional service. New York Footnotes Media Law Bulletin Los Angeles The Court then discussed Falwell’s cybersquatting claim, stating that to prevail Falwell had to establish that Lamparello: 1) had a bad faith intent to profit from using the domain name; and 2) the domain name was identical or confusingly similar to Falwell’s distinctive mark or dilutive of Falwell’s famous mark.25 The Court noted that the ACPA was primarily enacted to prevent cybersquatters from registering numerous domain The Court concluded that Lamparello had created a gripe site, and in following both the Fifth and Sixth Circuits, held that a gripe site criticizing a mark holder is not a violation of the ACPA.30 So even though all of our complaints may not receive such favorable treatment from the legal system, the Fourth Circuit has firmly established we are at least entitled to gripe about it. —By Aaron P. Rudin Sedgwick, Los Angeles Id. at 5. Id. at 2. 12 Id. at 6-7 (quoting People for the Ethical Treatment of Animals v. Doughney, 263 F.3d 359, 364 (4th Cir. 2001). 13 Id. at 8; see also Taubman Co. v. Webfeats, 319 F.3d 770, 774 (6th Cir. 2003); Bosley Med. Inst., Inc., v. Kremer, 403 F.3d 672 (9th Cir. 2005). 14 Falwell, 2005 U.S. App. LEXIS 18156 at 9-12. 15 Id. at 12-13. 16 Id. at 13-14. 17 Id. at 14 (citing New Kids on the Block v. News Am. Publ’g, Inc., 971 F.2d 302, 308-09 (9th Cir. 1992). 18 Id. at 15. 19 Id. 20 Dorr-Oliver, Inc. v. Fluid-Quip, Inc., 94 F.3d 376, 382 (9th Cir. 1996). 21 Id. 22 Falwell, 2005 U.S. App. LEXIS 18156 at 16. 23 Id. at 18 (citation omitted). 24 Id. at 19-21. 25 Id. at 23 (citations omitted). 26 Id. at 24. 27 Falwell, 2005 U.S. App. LEXIS 18156 at 27-34. 28 Id. at 28. 29 Id. at 30-32. 30 Id. at 34 (citing TMI, inc. v. Maxwell, 368 F.3d 433, 434-45 (5th Cir. 2005) and Lucas Nursery & Landscaping, Inc. v. Grosse, 359 F.3d 806, 810 (6th Cir. 2004)). 11 London Nevertheless, the Court noted that even if it were persuaded to adopt the initial interest confusion theory, the theory was inapplicable because it required that Lamparello’s use of Falwell’s mark was for financial gain.24 Since Lamparello’s use of the mark was strictly for gripe and criticism, the Court rejected Falwell’s “initial interest confusion” argument. The Court discussed nine factors that help distinguish wrongful domain name registrations from legitimate ones. After careful consideration of each factor, the Court held that Falwell could not show that Lamparello had a bad faith intent to profit from using the domain name.27 The Court emphasized that Lamparello’s use of the domain name was only to criticize Falwell’s views and not for profit.28 Additionally, the Court noted that Lamparello had not engaged in conduct that would create a likelihood of confusion as to the source of the website and had made no attempt to sell the domain name to Falwell for financial gain or to register multiple domain names containing Falwell’s name.29 10 Dallas The Fourth Circuit stated that it had never adopted the “initial interest confusion” doctrine but generally determined whether a likelihood of confusion exists by “examining the allegedly infringing use in the context in which it is seen by the ordinary consumer.”22 The Court reiterated that likelihood of confusion should not be determined based on “how closely a fragment” of a use duplicates a mark, but rather should be determined based on the entirety of the use.23 names in an effort to sell them to the legitimate owners of the mark and not to prevent “noncommercial uses of a mark, such as for comment, criticism, parody, news reporting, etc.”26 Chicago Falwell also argued that he was entitled to prevail under the “initial interest confusion” doctrine established by the Ninth Circuit.20 The doctrine prevents a “competitor from luring potential customers away from a producer by initially passing off its goods as those of the producer’s, even if confusion as to the source of the goods is dispelled by the time any sales are consummated.”21 However, this argument failed to persuade the Fourth Circuit.