Trademark legal liabilities

My lawyer is probably the best that money can buy when it comes to Internet issues. This was brought to my attention recently…

ROSETTA STONE LTD. v. ROCKET LANGUAGES LTD.
CENTRAL DISTRICT OF CALIFORNIA (LOS ANGELES)
2:08-cv-00402
FILED: 7/02/2008

This is one of the first lawsuits I have seen filed against “comparison shopping” websites that are selling competing products but allegedly using the trademark to drive traffic to the “comparison reviews” site. This is a tactic that is being used more often by affiliate marketers. The use of the trademark in the ad appears to be very creative and it appears that the Defendants have set up a “commercial free speech” defense, although such a claim is very unlikely to succeed given the commercial nature of the use of the trademark.

Plaintiff is a leading developer of computer software for teaching and learning foreign languages. This lawsuit alleges that the Defendants used the term “Rosetta Stone”, which is a registered trademark of the Plaintiff, to trigger ads as a keyword in the Google AdWords program and Yahoo’s Marketing Solutions program. Defendants are also allegedly using the “Rosetta Stone” trademark in the title and description of the ads and then leading consumers to “comparison reviews” which are allegedly illegitimate and fabricated solely for purposes of selling competing products.

This lawsuit alleges trademark infringement, trademark dilution, unfair competition, false advertising, contributory trademark infringement, and vicarious trademark infringement. Preliminary injunctive relief is requested as well as an award of damages, attorney’s fees, court costs and interest.

Obviously as state above, the use of trademarks in adcopy that ultimately push competing products (e.g. “netflix is better than blockbuster”) may open you to legal action.

But it also brings into question the use of comparison sites in general. Even if you legitimately send traffic to all products you review, #2 may sue you simply because you didn’t list them as #1.

Comments
2 comments have been left so far »
  1. MyAvatars 0.2 Jonathan Volk
    August 27, 2008

    Wow. This is pretty crazy.

    Leave a reply
  2. MyAvatars 0.2 Work Plus Faith
    September 2, 2008

    Good info to keep in mind.

    The “illegitimate” reviews part is interesting…

    Tim

    Leave a reply
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