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Domain Names
15/10/08
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Viable Defense for
Domain Owners By Liz Oliveira,
Legal Team
A court in the Southern District
of Florida recently barred a trademark owner, who sought possession
of a domain that allegedly infringed on his mark, from asserting claims
under then Lanham Act and the Anti-Cybersquating Consumer Protection
Act (ACPA) due to the Doctrine of Laches, thus dismissing the case
in favor of the defendant.
The doctrine of laches is considered in the legal realm to be an “equitable
defense” that rewards those who diligently assert their claim
and penalizes those who procrastinate when avowing their rights. Under
this doctrine if party delays in stating their claim and as a result
that delay unfairly prejudices the opposing party then the opposing
party may assert the defense of laches. Generally, for a party to
be unfairly prejudiced it must be shown that as a result of the delay
the opposing party is in a worse position now then at the time the
claim should have been brought.
In the case at hand the defendant acquired assets including the domain
diamondbrite.com and trademark rights in the mark “Diamond Brite”
as it apples to electronic signs. In 2002 the plaintiff, owner of
the “Diamond Brite” trademark with respect to cleaning
products, sent an email to the defendant seeking to procure the domain.
No action was taken upon this request. In 2005, the plaintiff sent
a cease and desist letter to the defendant and demanded immediate
possession of the domain. The defendant refused the transfer but asked
for more information regarding the plaintiffs’ trademark. The
defendant did not hear from the plaintiff again until 2007 when they
received a second cease and desist letter to transfer the domain which
the defendant again refused. After the second refusal the plaintiff
sued the defendant for trademark infringement under the Lanham Act
and the ACPA.
In response to the lawsuit the defendant filed a motion to dismiss
the case based on the defense of laches. The court asserted the defendant
needed to prove three elements to be successful on a laches defense.
These elements are (1) a delay in asserting a right or claim; (2)
that the delay was not excusable; and (3) that there was undue prejudice
to the party against whom the claim was asserted. In applying the
elements to the case at hand the court determined that the plaintiff’s
actions, which consisted of merely sending an email and letters over
the course of five years, constituted a delay. Second, the court believed
that there was no excuse for the delay. And third, the court determined
that the said delay would unfairly prejudice the defendant as it would
require them to amass eight years worth of evidence which the court
found to be burdensome. Based on this analysis the court granted the
defendant’s motion and dismissed the case under the doctrine
of laches.