Panavision International, L.P., a Delaware Limited Partnership v. Dennis Toeppen Network Solutions, Inc., a District of Columbia Corporation
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Full Opinion
This case presents two novel issues. We are asked to apply existing rules of personal jurisdiction to conduct that occurred, in part, in âcyberspace.â In addition, we are asked to interpret the Federal Trademark Dilution Act as it applies to the Internet.
Panavision accuses Dennis Toeppen of being a âcyber pirateâ who steals valuable trademarks and establishes domain names on the Internet using these trademarks to sell the domain names to the rightful trademark owners.
The district court found that under the âeffects doctrine,â Toeppen was subject to personal jurisdiction in California. Panavision International, L.P. v. Toeppen, 938 F.Supp. 616, 620 (C.D.Cal.1996). The district court then granted summary judgment in favor of Panavision, concluding that Toepperis conduct violated the Federal Trademark Dilution Act of 1995, 15 U.S.C. § 1125(c), and the California Anti-dilution statute, California Business & Professions Code § 14330. Panavision International, L.P. v. Toeppen, 945 F.Supp. 1296, 1306 (C.D.Cal.1996).
Toeppen appeals. He argues that the district court erred in exercising personal jurisdiction over him because any contact he had with California was insignificant, emanating solely from his registration of domain names on the Internet, which he did in Illinois. Toeppen further argues that the district court erred in granting summary judgment because his use of Panavisionâs trademarks on the Internet was not a commercial use and did not dilute those marks.
We have jurisdiction under 28 U.S.C. § 1291 and we affirm. The district courtâs exercise of jurisdiction was proper and comported with the requirements of due process. Toeppen did considerably more than simply register Panavisionâs trademarks as his domain names on the Internet. He registered those names as part of a scheme to obtain money from Panavision. Pursuant to that scheme, he demanded $13,000 from Panavision to release the domain names to it. His acts were aimed at Panavision in California, and caused it to suffer injury there.
We also conclude Panavision was entitled to summary judgment under the federal and state dilution statutes. Toeppen made commercial use of Panavisionâs trademarks and his conduct diluted those marks.
I
BACKGROUND
The Internet is a worldwide network of computers that enables various individuals and organizations to share information. The Internet allows computer users to access millions of web sites and web pages. A web page is a computer data file that can include names, words, messages, pictures, sounds, and links to other information.
Every web page has its own web site, which is its address, similar to a telephone number or street address. Every web site on the Internet has an identifier called a âdomain name.â The domain name often consists of a personâs name or a companyâs name or trademark. For example, Pepsi has a web page with a web site domain name consisting of the company name, Pepsi, and .com, the âtop levelâ domain designation: Pepsi.com. 1
The Internet is divided into several âtop levelâ domains: .edu for education; .org for organizations; .gov for government entities; .net for networks; and .com for âcommercialâ which functions as the catchall domain for Internet users.
Domain names with the .com designation must be registered on the Internet with Network Solutions, Inc. (âNSIâ). NSI registers names on a first-come, first-served basis for a $100 registration fee. NSI does not make *1319 a determination about a registrantâs right to use a domain name. However, NSI does require an applicant to represent and warrant as an express condition of registering a domain name that (1) the applicantâs statements are true and the applicant has the right to use the requested domain name; (2) the âuse or registration of the domain name ... does not interfere with or infringe the rights of any third party in any jurisdiction with respect to trademark, service mark, trade name, company name or any other intellectual property rightâ; and (3) the applicant is not seeking to use the domain name for any unlawful purpose, including unfair competition.
A domain name is the simplest way of locating a web site. If a computer user does not know a domain name, she can use an Internet âsearch engine.â To do this, the user types in a key word search, and the search will locate all of the web sites containing the key word. Such key word searches can yield hundreds of web sites. To make it easier to find their web sites, individuals and companies prefer to have a recognizable domain name.
Panavision holds registered trademarks to the names âPanavisionâ and âPanaflexâ in connection with motion picture camera equipment. Panavision promotes its trademarks through motion picture and television credits and other media advertising.
In December 1995, Panavision attempted to register a web site on the Internet with the domain name Panavision.com. It could not do that, however, because Toeppen had already established a web site using Panavisionâs trademark as his domain name. Toeppenâs web page for this site displayed photographs of the City of Pana, Illinois.
On December 20, 1995, Panavisionâs counsel sent a letter from California to Toeppen in Illinois informing him that Panavision held a trademark in the name Panavision and telling him to stop using that trademark and the domain name Panavision.com. Toeppen responded by mail to Panavision in California, stating he had the right to use the name Panavision.com on the Internet as his domain name. Toeppen stated:
If your attorney has advised you otherwise, he is trying to screw you. He wants to blaze new trails in the legal frontier at your expense. Why do you want to fund your attorneyâs purchase of a new boat (or whatever) when you can facilitate the acquisition of âPanaVision.comâ cheaply and simply instead?
Toeppen then offered to âsettle the matterâ if Panavision would pay him $13,000 in exchange for the domain name. Additionally, Toeppen stated that if Panavision agreed to his offer, he would not âacquire any other Internet addresses which are alleged by Panavision Corporation to be its property.â
After Panavision refused Toeppenâs demand, he registered Panavisionâs other trademark with NSI as the domain name Panafiex.com. Toeppenâs web page for Panaflex.com simply displays the word âHello.â
Toeppen has registered domain names for various other companies including Delta Airlines, Neiman Marcus, Eddie Bauer, Lufthansa, and over 100 other marks. Toeppen has attempted to âsellâ domain names for other trademarks such as intermatic.com to Intermatic, Inc. for $10,000 and amerieanstandard.com to American Standard, Inc. for $15,000.
Panavision filed this action against Toeppen in the District Court for the Central District of California. Panavision alleged claims for dilution of its trademark under the Federal Trademark Dilution Act of 1995, 15 U.S.C. § 1125(c), and under the California Anti-dilution statute, California Business and Professions Code § 14330. Panavision alleged that Toeppen was in the business of stealing trademarks, registering them as domain names on the Internet and then selling the domain names to the rightful trademark owners. The district court determined it had personal jurisdiction over Toeppen, and granted summary judgment in favor of Panavision on both its federal and state dilution claims. This appeal followed.
II
DISCUSSION
A. Personal Jurisdiction
A district courtâs determination that personal jurisdiction can properly be exer *1320 cised is a question of law reviewable de novo when the underlying facts are undisputed. Firemanâs Fund Ins. Co. v. National Bank of Coops., 103 F.3d 888, 893 (9th Cir.1996). A district courtâs factual findings regarding jurisdiction are reviewed for clear error. Adler v. Federal Rep. of Nig., 107 F.3d 720, 723 (9th Cir.1997).
There is no applicable federal statute governing personal jurisdiction in this case. Accordingly, we apply the law of California, the state in which the district court sits. Core-Vent Corp. v. Nobel Industries AB, 11 F.3d 1482, 1484 (9th Cir.1993). Californiaâs long-arm statute permits a court to exercise personal jurisdiction over a defendant to the extent permitted by the Due Process Clause of the Constitution. Cal.Code Civ. P. § 410.10; Gordy v. Daily News, L.P., 95 F.3d 829, 831 (9th Cir.1996). The issue we address, therefore, is whether the requirements of due process are satisfied by the district courtâs exercise of personal jurisdiction over Toeppen. Core-Vent, 11 F.3d at 1484.
Personal jurisdiction may be founded on either general jurisdiction or specific jurisdiction.
1. General Jurisdiction
General jurisdiction exists when a defendant is domiciled in the forum state or his activities there are âsubstantialâ or âcontinuous and systematic.â HelicĂłpteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414-16, 104 S.Ct. 1868, 1872-73, 80 L.Ed.2d 404 (1984). The district court correctly concluded that it did not have general jurisdiction over Toeppen. Toeppen is domiciled in Illinois and his activities in California are not substantial or continuous and systematic. See Toeppen, 938 F.Supp. at 620.
2. Specific Jurisdiction
We apply a three-part test to determine if a district court may exercise specific jurisdiction:
(1) The nonresident defendant must do some act or consummate some transaction with the forum or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws; (2) the claim must be one which arises out of or results from the defendantâs forum-related activities; and (3) exercise of jurisdiction must be reasonable.
Omeluk v. Langsten Slip & Batbyggeri AJS, 52 F.3d 267, 270 (9th Cir.1995) (quotation omitted).
The first of these requirements is purposeful availment.
a. Purposeful Availment
The purposeful availment requirement ensures that a nonresident defendant will not be haled into court based upon ârandom, fortuitous or attenuatedâ contacts with the forum state. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 105 S.Ct. 2174, 2183-84, 85 L.Ed.2d 528 (1985). This requirement is satisfied if the defendant âhas taken deliberate actionâ toward the forum state. Ballard v. Savage, 65 F.3d 1495, 1498 (9th Cir.1995). It is not required that a defendant be physically present or have physical contacts with the forum, so long as his efforts are âpurposefully directedâ toward forum residents. Id.
i. Application to the Internet
Applying principles of personal jurisdiction to conduct in cyberspace is relatively new. âWith this global revolution looming on the horizon, the development of the law concerning the permissible scope of personal jurisdiction based on Internet use is in its infant stages. The cases are scant.â Zippo Mfg. Co. v. Zippo Dot Com, Inc., 952 F.Supp. 1119, 1123 (W.D.Pa.1997). We have, however, recently addressed the personal availment aspect of personal jurisdiction in a case involving the Internet. See Cybersell, Inc. v. Cybersell, Inc., 130 F.3d 414 (9th Cir.1997).
In Cybersell, an Arizona corporation, Cybersell, Inc. (âCybersell AZâ), held a registered servicemark for the name Cybersell. A Florida corporation, Cybersell, Inc. (âCybersell FLâ), created a web site with the domain name cybsell.com. The web page had the word âCybersellâ at the top and the phrase, âWelcome to Cybersell!â Id. at 415. *1321 Cybersell AZ claimed that Cybersell FL infringed its registered trademark and brought an action in the district court in Arizona. We held the Arizona court could not exercise personal jurisdiction over Cybersell FL, because it had no contacts with Arizona other than maintaining a web page accessible to anyone over the Internet. Id. at 419-420.
In reaching this conclusion in Cybersell, we carefully reviewed cases from other circuits regarding how personal jurisdiction should be exercised in cyberspace. We concluded that no court had ever held that an Internet advertisement alone is sufficient to subject a party to jurisdiction in another state. Id. at 418. In each case where personal jurisdiction was exercised, there had been âsomething moreâ to âindicate that the defendant purposefully (albeit electronically) directed his activity in a substantial way to the forum state.â Id. Cybersell FL had not done this, and the district court could not exercise personal jurisdiction over it.
Personal jurisdiction was properly exercised, however, in CompuServe, Inc. v. Patterson, 89 F.3d 1257 (6th Cir.1996). There, the Sixth Circuit held that a Texas resident who had advertised his product via a computer information service, CompuServe, located in Ohio, was subject to personal jurisdiction in Ohio. The court found that the Texas resident had taken direct actions that created a connection with Ohio. Id. at 1264. He subscribed to CompuServe, he loaded his software onto the CompuServe system for others to use, and he advertised his software on the CompuServe system. Id.
In the present case, the district courtâs decision to exercise personal jurisdiction over Toeppen rested on its determination that the purposeful availment requirement was satisfied by the âeffects doctrine.â That doctrine was not applicable in our Cybersell case. There, we said: âLikewise unpersuasive is Cybersell AZâs reliance on Panavision International v. Toeppen, 938 F.Supp. 616 (C.D.Cal.1996), [the district courtâs published opinion in this case], where the court found the âpurposeful availmentâ prong satisfied by the effects felt in California, the home state of Panavision, from Toeppenâs alleged out-of-state scheme to register domain names using the trademarks of California companies, including Panavision, for the purpose of extorting fees from them. Again, there is nothing analogous about Cybersell FLâs conduct.â Cybersell, 130 F.3d at 420 n. 6.
Our reference in Cybersell to âthe effects felt in Californiaâ was a reference to the effects doctrine.
n. The Effects Doctrine
In tort cases, jurisdiction may attach if the defendantâs conduct is aimed at or has an effect in the forum state. Ziegler v. Indian River County, 64 F.3d 470, 473 (9th Cir. 1995); see Calder v. Jones, 465 U.S. 783, 104 S.Ct. 1482, 79 L.Ed.2d 804 (1984) (establishing an âeffects testâ for intentional action aimed at the forum state). Under Calder, personal jurisdiction can be based upon: â(1) intentional actions (2) expressly aimed at the forum state (3) causing harm, the brunt of which is suffered-and which the defendant knows is likely to be suffered-in the forum state.â Core-Vent Corp. v. Nobel Industries AB, 11 F.3d 1482, 1486 (9th Cir.1993).
As the district court correctly stated, the present case is akin to a tort case. Panavision, 938 F.Supp. at 621; see also Ziegler, 64 F.3d at 473 (application of the purposeful availment prong differs depending on whether the underlying claim is a tort or contract claim). Toeppen purposefully registered Panavisionâs trademarks as his domain names on the Internet to force Panavision to pay him money. Panavision, 938 F.Supp. at 621. The brunt of the harm to Panavision was felt in California. Toeppen knew Panavision would likely suffer harm there because, although at all relevant times Panavision was a Delaware limited partnership, its principal place of business was in California, and the heart of the theatrical motion picture and television industry is located there. Id. at 621-622.
The harm to Panavision is similar to the harm to the Indianapolis Colts football team in Indianapolis Colts, Inc. v. Metropolitan Baltimore Football Club Ltd. Partnership, 34 F.3d 410 (7th Cir.1994). There, the Indianapolis Colts brought a trademark infringement action in the district court in Indiana *1322 against the Canadian Football Leagueâs new team, the âBaltimore CFL Colts.â Id. at 411. The Seventh Circuit held that the Baltimore CFL Colts team was subject to personal jurisdiction in Indiana even though its only activity directed toward Indiana was the broadcast of its games on nationwide cable television. Id. Because the Indianapolis Colts used their trademarks in Indiana, any infringement of those marks would create an injury which would be felt mainly in Indiana, and this, coupled with the defendantâs âentryâ into the state by the television broadcasts, was sufficient for the exercise of personal jurisdiction. Id.
Toeppen argues he has not directed any activity toward Panavision in California, much less âenteredâ the state. He contends that all he did was register Panavisionâs trademarks on the Internet and post web sites using those marks; if this activity injured Panavision, the injury occurred in cyberspace. 2
We agree that simply registering someone elseâs trademark as a domain name and posting a web site on the Internet is not sufficient to subject a party domiciled in one state to jurisdiction in another. Cybersell, 130 F.3d at 418. As we said in Cybersell, there must be âsomething moreâ to demonstrate that the defendant directed his activity toward the forum state. Id. Here, that has been shown. Toeppen engaged in a scheme to register Panavisionâs trademarks as his domain names for the purpose of extorting money from Panavision. His conduct, as he knew it likely would, had the effect of injuring Panavision in California where Panavision has its principal .place of business and where the movie and television industry is centered. 3 Under the âeffects test,â the purposeful availment requirement necessary for specific, personal jurisdiction is satisfied.
b. Defendantâs Forum-Related Activities
The second requirement for specific, personal jurisdiction is that the claim asserted in the litigation arises out of the defendantâs forum related activities. Ziegler, 64 F.3d at 474. We must determine if the plaintiff Panavision would not have been injured âbut forâ the defendant Toeppenâs conduct directed toward Panavision in California. See Ballard, 65 F.3d at 1500.
This requirement is satisfied: Toeppenâs registration of Panavisionâs trademarks as his own domain names on the Internet had the effect of injuring Panavision in California. But for Toeppenâs conduct, this injury would not have occurred. Panavisionâs claims arise out of Toeppenâs California-related activities.
c. Reasonableness
Even if the first two requirements are met, in order to satisfy the Due Process Clause, the exercise of personal jurisdiction must be reasonable. Ziegler, 64 F.3d at 474-75. For jurisdiction to be reasonable, it must comport with âfair play and substantial justice.â Burger King, 471 U.S. at 476, 105 S.Ct. at 2184. â[W]here a defendant who purposefully has directed his activities at forum residents seeks to defeat jurisdiction, he must present a compelling case that the presence of some other considerations would render jurisdiction unreasonable.â Core-Vent, 11 F.3d at 1487 (citing Burger King, 471 U.S. at 476-77, 105 S.Ct. at 2184-85).
As we have said, Toeppen purposefully directed his activities at Panavision in California. This placed the burden on him to âpresent a compelling case that the presence of some other considerations would render jurisdiction unreasonable.â Id.
*1323 In addressing the question of reasonableness, we consider seven factors: (1) the extent of a defendantâs purposeful interjection; (2) the burden on the defendant in defending in the forum; (3) the extent of conflict with the sovereignty of the defendantâs state; (4) the forum stateâs interest in adjudicating the dispute; (5) the most efficient judicial resolution of the controversy; (6) the importance of the forum to the plaintiffs interest in convenient and effective relief; and (7) the existence of an alternative forum. Burger King, 471 U.S. at 476-77, 105 S.Ct. at 2184-85. No one factor is dispositive; a court must balance all seven. Core-Vent, 11 F.3d at 1488.
The district court found that Toeppen had not presented a compelling ease that jurisdiction was unreasonable. Panavision, 938 F.Supp. at 622. We agree. The balance of the Burger King factors which we articulated in Core-Vent tips in favor of the exercise of personal jurisdiction.
i.Purposeful Interjection
âEven if there is sufficient âinterjectionâ into the state to satisfy the purposeful availment prong, the degree of interjection is a factor to be weighed in assessing the overall reasonableness of jurisdiction under the reasonableness prong.â Core-Vent, 11 F.3d at 1488 (citing Insurance Company of North America v. Marina Salina Cruz, 649 F.2d 1266, 1271 (9th Cir.1981)). Here, the degree of interjection was substantial.
Toeppenâs acts were aimed at Panavision in California. He registered Panavisionâs trademarks as his domain names, knowing that this would likely injure Panavision in California. In addition, he sent a letter to Panavision in California demanding $13,000 to release his registration of Panavision.com. The purposeful interjection factor weighs strongly in favor of the district courtâs exercise of personal jurisdiction.
ii.Defendantâs Burden in Litigating
A defendantâs burden in litigating in the forum is a factor in the assessment of reasonableness, but unless the âinconvenience is so great as to constitute a deprivation of due process, it will not overcome clear justifications for the exercise of jurisdiction.â Caruth v. International Psychoanalytical Assân, 59 F.3d 126, 128-29 (9th Cir.1995) (citing Roth v. Garcia Marquez, 942 F.2d 617, 623 (9th Cir.1991)).
The burden on Toeppen as an individual living in Illinois to litigate in California is significant, but the inconvenience is not so great as to deprive him of due process. As the district court stated, â âin this era of fax machines and discount air travelâ requiring Toeppen to litigate in California is not constitutionally unreasonable.â Panavision, 938 F.Supp. at 622 (quoting Sher v. Johnson, 911 F.2d 1357,1365 (9th Cir.1990)).
iii.Sovereignty
This factor concerns the extent to which the district courtâs exercise of jurisdiction in California would conflict with the sovereignty of Illinois, Toeppenâs state of domicile. Core-Vent, 11 F.3d at 1489. Such a conflict is not a concern in this case. The allegations in support of Panavisionâs state law claim and those in support of its federal claim under the Trademark Dilution Act require the same analysis. The federal analysis would be the same in either Illinois or California. In this circumstance, the exercise of jurisdiction by a federal court in California does not implicate sovereignty concerns of Illinois.
iv.Forum Stateâs Interest
âCalifornia maintains a strong interest in providing an effective means of redress for its residents tortiously injured.â Gordy v. Daily News, L.P., 95 F.3d 829, 836 (9th Cir.1996) (citing Sinatra v. National Enquirer, Inc., 854 F.2d 1191, 1200 (9th Cir.1988)). Panavisionâs principal place of business is in California. This factor weighs in Panavisionâs favor.
v.Efficient Resolution
This factor focuses on the location of the evidence and witnesses. Caruth, 59 F.3d at 129. It is no longer weighed heavily given the modern advances in communication and transportation. Id. In any event, due to the limited amount of evidence and few potential *1324 witnesses in the present litigation, this factor is probably neutral.
vi. Convenient & Effective Relief for Plaintiff
In evaluating the convenience and effectiveness of relief for the plaintiff, we have given little weight to the plaintiffâs inconvenience. Ziegler, 64 F.3d at 476. It may be somewhat more costly and inconvenient for Panavision to litigate in another forum, but the burden on Panavision is relatively slight. This factor is essentially neutral, perhaps weighing slightly in Toeppenâs favor.
vii. Alternative Forum
Panavision has not demonstrated the unavailability of an alternative forum. In this case, Illinois is an alternative forum. As stated above, it may be more costly and inconvenient for Panavision to litigate in Illinois, but this is not an unreasonable burden. This factor weighs in Toeppenâs favor.
In balancing the Burger King factors, we conclude that although some factors weigh in Toeppenâs favor, he failed to present a compelling case that the district courtâs exercise of jurisdiction in California would be unreasonable.
We conclude that all of the requirements for the exercise of specific, personal jurisdiction are satisfied. The district court properly exercised personal jurisdiction over Toeppen. We next consider the district courtâs summary judgment in favor of Panavision on its trademark dilution claims.
B. Trademark Dilution Claims
The Federal Trademark Dilution Act provides:
The owner of a famous mark shall be entitled ... to an injunction against another personâs commercial use in commerce of a mark or trade name, if such use begins after the mark has become famous and causes dilution of the distinctive quality of the mark....
15 U.S.C. § 1125(c).
The California Anti-dilution statute is similar. See Cal. Bus. & Prof.Code § 14330. It prohibits dilution of âthe distinctive qualityâ of a mark regardless of competition or the likelihood of confusion. The protection extends only to strong and well recognized marks. Panavisionâs state law dilution claim is subject to the same analysis as its federal claim.
In order to prove a violation of the Federal Trademark Dilution Act, a plaintiff must show that (1) the mark is famous; (2) the defendant is making a commercial use of the mark in commerce; (3) the defendantâs use began after the mark became famous; and (4) the defendantâs use of the mark dilutes the quality of the mark by diminishing the capacity of the mark to identify and distinguish goods and services. 15 U.S.C. § 1125(c).
Toeppen does not challenge the district courtâs determination that Panavisionâs trademark is famous, that his alleged use began after the mark became famous, or that the use was in commerce. Toeppen challenges the district courtâs determination that he made âcommercial useâ of the mark and that this use caused âdilutionâ in the quality of the mark.
1. Commercial Use
Toeppen argues that his use of Panavisionâs trademarks simply as his domain names cannot constitute a commercial use under the Act. Case law supports this argument. See Panavision International, L.P. v. Toeppen, 945 F.Supp. 1296, 1303 (C.D.Cal. 1996) (âRegistration of a trade[mark] as a domain name, without more, is not a commercial use of the trademark and therefore is not within the prohibitions of the Act.â); Academy of Motion Picture Arts & Sciences v. Network Solutions, Inc., â F.Supp. â, 1997 WL 810472 (C.D.Cal. Dec.22, 1997) (the mere registration of a domain name does not constitute a commercial use); Lockheed Martin Corp. v. Network Solutions, Inc., 985 F.Supp. 949 (C.D.Cal.1997) (NSIâs acceptance of a domain name for registration is not a commercial use within the meaning of the Trademark Dilution Act).
Developing this argument, Toeppen contends that a domain name is simply an address used to locate a web page. He asserts *1325 that entering a domain name on a computer allows a user to access a web page, but a domain name is not associated with information on a web page. If a user were to type Panavision.com as a domain name, the. computer screen would display Toeppenâs web page with aerial views of Pana, Illinois. The screen would not provide any information about âPanavision,â other than a âlocation windowâ which displays the domain name. Toeppen argues that a user who types in Panavision.com, but who sees no reference to the plaintiff Panavision on Toeppenâs web page, is not likely to conclude the web page is related in any way to the plaintiff, Panavision.
Toeppenâs argument misstates his use of the Panavision mark. His use is not as benign as he suggests. Toeppenâs âbusinessâ is to register trademarks as domain names and then sell them to the rightful trademark owners. He âact[s] as a âspoiler,â preventing Panavision and others from doing business on the Internet under their trademarked names unless they pay his fee.â Panavision, 938 F.Supp. at 621. This is a commercial use. See Intermatic Inc. v. Toeppen, 947 F.Supp. 1227, 1230 (N.D.Ill.1996) (stating that â[o]ne of Toeppenâs business objectives is to profit by the resale or licensing of these domain names, presumably to the entities who conduct business under these names.â).
As the district court found, Toeppen traded on the value of Panavisionâs marks. So long as he held the Internet registrations, he curtailed Panavisionâs exploitation of the value of its trademarks on the Internet, a value which Toeppen then used when he attempted to sell the Panavision.com domain name to Panavision.
In a nearly identical case involving Toeppen and Intermatic Inc., a federal district court in Illinois held that Toeppenâs conduct violated the Federal Trademark Dilution Act. Intermatic, 947 F.Supp. at 1241. There, Intermatie sued Toeppen for registering its trademark on the Internet as Toeppenâs domain name, intermatic.com. It was âconceded that one of Toeppenâs intended uses for registering the Intermatic mark was to eventually sell it back to Intermatic or to some other party.â Id. at 1239. The court found that âToeppenâs intention to arbitrage the âintermatic.comâ domain name constitute^] a commercial use.â Id.See also Teletech Customer Care Management, Inc. v. Tele-Tech Co., 977 F.Supp. 14