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Keywords

lawsuitjurisdictionappealtrademarkconsumer protection
jurisdictiontrademarkconsumer protection

Related Cases

Hawes v. Network Solutions, Inc., 337 F.3d 377, 67 U.S.P.Q.2d 1276

Facts

Christopher J. Hawes registered the domain name 'lorealcomplaints.com' to create a forum for discussing issues with L'Oreal's products. After L'Oreal filed a lawsuit in France against Hawes for trademark infringement, Network Solutions transferred control of the domain name to L'Oreal based on a French court order. Hawes subsequently filed a declaratory action against Network Solutions and L'Oreal, claiming the transfer was improper and that his use of the domain name was lawful under the Lanham Act. The district court dismissed the action for lack of subject matter jurisdiction, leading to Hawes' appeal.

In April 1999, Hawes registered the domain name with Network Solutions, Inc. in Herndon, Virginia, and, in connection with that registration, entered into a Domain Name Registration Agreement. Hawes alleges that he registered the domain name to develop a forum in which to communicate with L'Oreal concerning problems with its products because his efforts to communicate with L'Oreal had been unsuccessful and its representatives were unable to 'properly answer [Hawes'] inquiries.'

Issue

Did the district court err in dismissing Hawes' claims against Network Solutions and L'Oreal for lack of subject matter jurisdiction under the Anticybersquatting Consumer Protection Act?

Did the district court err in dismissing Hawes' claims against Network Solutions and L'Oreal for lack of subject matter jurisdiction under the Anticybersquatting Consumer Protection Act?

Rule

A complaint under the Anticybersquatting Consumer Protection Act (ACPA) against a registrar is a claim under the trademark laws for which federal courts have subject matter jurisdiction. A domain name registrant may sue a trademark owner for 'reverse domain name hijacking' if the registrant's domain name was suspended, disabled, or transferred under a registrar's policy, and the registrant's use of the domain name is not unlawful under the Lanham Act.

Analysis

The court found that the district court correctly dismissed the claim against Network Solutions because there was no anticybersquatting action pending at the time of the domain name transfer. However, the court determined that Hawes had adequately stated a claim against L'Oreal for reverse domain name hijacking, as he alleged that the transfer of the domain name was improper and that his use was lawful under the Lanham Act. The court emphasized that jurisdiction was conferred by the ACPA, allowing Hawes' claim to proceed.

The district court concluded that '[Hawes] never alleges that any underlying ACPA action was in existence when [Network Solutions] allegedly transferred the LOREALCOMPLAINTS.COM domain name.' The court further stated that 'the ACPA creates a cause of action for reverse domain name hijacking against trademark owners who misuse or abuse their rights in bringing a cybersquatting action.'

Conclusion

The court affirmed the dismissal of the claims against Network Solutions but reversed the dismissal of the claims against L'Oreal, remanding the case for further proceedings.

Who won?

The court's ruling effectively allowed Hawes to proceed with his claims against L'Oreal, recognizing that he had a valid legal basis for asserting that the transfer of the domain name was improper. This decision underscored the importance of protecting domain name registrants from overreaching trademark claims, affirming that the ACPA provides a mechanism for registrants to challenge such actions in federal court.

The court noted that 'Hawes has the right to come in, if this domain name has been improperly transferred, whether it has or not is another question, but if it has been improperly transferred, [he has] the right to come in and ask for that domain name back.'

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