P. James Taurinskas, P.A. - Attorneys at Law - Minneapolis St. Paul, Minnesota
�Pop-Ups� Annoy but Don�t Infringe

An Internet marketing company pro­vided a free software application that keeps track of computer users� activity on the web in order to deliver targeted advertising for its clients. The software uses an unpublished internal directory with thousands of website addresses and keywords for particular interests of con­sumers. When the computer user types in particular terms in a browser or search engine, a relevant �pop-up� ad is deliv­ered to the computer.

A company in the contact lens busi­ness learned that its website was in the internal directory and that the software caused pop-up ads for competing con­tact lens retailers to appear on the screens of individuals who visited the company�s website. The contact lens company sued the marketing firm on the theory that the marketing firm had infringed upon a trademark in viola­tion of federal law. From the plaintiff�s standpoint, the actions of the market­ing firm were allowing competitors  take a free ride on the plaintiff�s website.

A federal court ruled against the plaintiff contact lens company. A suc­cessful trademark infringement law­suit requires a showing of a protected trademark and a use of that trademark in commerce in connection with the sale or advertising of goods or serv­ices, without the plaintiffs consent. The use of the mark by the defendant also must be such as to likely cause confusion between the plaintiff and the defendant. The action brought by the plaintiff failed primarily due to the court�s ruling that the defendant had never �used� the plaintiff�s trademark in a manner like that in a typical in­fringement case. First, the defendant reproduced the plaintiff�s website ad­dress, which was similar, but not iden­tical, to its trademark. In addition, the pop-up ads, which appeared in a sepa­rate window prominently branded with the marketing company�s mark, had no discernible effect on the func­tioning of the plaintiff�s website.


It was not enough for a successful claim that the defendant and its clients were trying to take advantage of the plaintiff�s goodwill and reputation, which had led people to the plaintiff�s website in the first place. What the defendant was doing was no more le­gally objectionable than the low-tech counterpart of chain drug stores plac­ing their own store-brand products on shelves next to the higher-priced and trademarked versions of the same products, so as to capitalize on their competitors� name recognition.




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