Weather Underground, Incorporated v. Navigation Catalyst Systems, Incorporated et al

Filing 219

REPLY to Response re 187 MOTION for Partial Summary Judgment filed by Connexus Corporation, Firstlook, Incorporated, Navigation Catalyst Systems, Incorporated. (Delgado, William)

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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN THE WEATHER UNDERGROUND, INC., a Michigan corporation, Plaintiff, Case No. 2:09-CV-10756 Hon. Marianne O. Battani vs. NAVIGATION CATALYST SYSTEMS, INC., a Delaware corporation; CONNEXUS CORP., a Delaware corporation; FIRSTLOOK, INC., a Delaware corporation; and EPIC MEDIA GROUP, INC., a Delaware corporation, Defendants. ______________________________________________________________________ Enrico Schaefer (P43506) Brian A. Hall (P70865) TRAVERSE LEGAL, PLC 810 Cottageview Drive, Unit G-20 Traverse City, MI 49686 231-932-0411 enrico.schaefer@traverselegal.com brianhall@traverselegal.com Lead Attorneys for Plaintiff William A. Delgado WILLENKEN WILSON LOH & LIEB LLP 707 Wilshire Boulevard, Suite 3850 Los Angeles, CA 90017 (213) 955-9240 williamdelgado@willenken.com Lead Counsel for Defendants Nicholas J. Stasevich (P41896) Benjamin K. Steffans (P69712) Anthony P. Patti (P43729) BUTZEL LONG, P.C. HOOPER HATHAWAY, PC 150 West Jefferson, Suite 100 126 South Main Street Detroit, MI 48226 Ann Arbor, MI 48104 (313) 225-7000 734-662-4426 stasevich@butzel.com apatti@hooperhathaway.com steffans@butzel.com Attorneys for Plaintiff Local Counsel for Defendants ______________________________________________________________________ DEFENDANTS CONNEXUS CORPORATION, FIRSTLOOK, INC. AND NAVIGATION CATALYST SYSTEMS, INC.’S REPLY MEMORANDUM IN SUPPORT OF MOTION FOR SUMMARY ADJUDICATION 1 REPLY MEMORANDUM OF POINTS AND AUTHORITIES As the Court is undoubtedly aware, the Motion for Summary Adjudication filed by Connexus Corporation, Firstlook, Inc., and Navigation Catalyst Systems, Inc. (the “Connexus Defendants”) (Docket No. 187) and the Motion for Summary Adjudication filed by Plaintiff The Weather Underground, Inc. (Docket No. 189) are simply mirror opposites of each other. Rather that inundate the Court with repetitive arguments, for their reply in support of the Connexus Defendants’ MSA, the Connexus Defendants will simply incorporate the evidence and arguments set forth in its Opposition Brief to Plaintiff’s MSA. (Docket No. 193). That said, the Connexus Defendants do want to highlight some points: In its present Opposition to the Connexus Defendants’ MSA (Docket No. 203), Plaintiff argues that the term “bad faith intent” as used in the ACPA is defined by the statute itself. (Opp. at 4). In fact, that is not true. “Bad faith intent” is not defined by the statute. Instead, the statute merely provides non-exclusive factors that may—but do not need to—be considered. 15 U.S.C. § 1125(d)(1)(B)(i); Lucas Nursery & Landscaping, Inc. v. Grosse, 359 F.3d 806, 811 (6th Cir. 2004) (“The factors are given to courts as a guide, not as a substitute for careful thinking about whether the conduct at issue is motivated by a bad faith intent to profit.”). Thus, this Court must determine the requisite level of liability necessary to trigger a finding of “bad faith intent,” and, as the Connexus Defendants have noted, mere negligence is not sufficient. In its opening brief, the Connexus Defendants cited to various cases that all stand for a straightforward proposition: that Congress intended the ACPA to be a narrow statute and that, to make certain that Congress’ intent was realized, Courts have interpreted and will 1 continue to interpret it narrowly. See Solid Host, NL v. Namecheap, Inc., 652 F. Supp. 2d 1092, 1101 (C.D. Cal. 2009) (“In considering these [novel] issues, the court is mindful that the statute’s scope is narrow.”); Harrods Ltd. v. Sixty Internet Domain Names, 110 F. Supp. 2d 420, 426 (E.D. Va. 2000) (“Our statutory interpretation is consistent with the legislative history of the ACPA, which makes clear that the statute's scope is narrow.”). In response, Plaintiff would have the Court ignore the cases (and Congress’s legislative intent) that are specific to the ACPA and, instead, focus on other aspects of Section 1125 of the Trademark Act. (Opp. at pp. 6-7). Obviously, that would be a mistake. Congress’s intent with respect to other statutes is irrelevant because, as courts have noted, the ACPA is a very different statute with a very different prima facie requirement. See, e.g., Lahoti v. VeriCheck, Inc., 586 F.3d 1190, 1202 (9th Cir. 2009) (“A finding of bad faith is an essential prerequisite to finding an ACPA violation, though it is not required for general trademark liability.”). Contrary to what Plaintiff writes in its brief, the undisputed evidence submitted by the Connexus Defendants in support of this Motion shows that the human reviewers did not know of Plaintiff’s marks. That human reviewers looked at every domain name (Opp. at p. 7) says nothing about whether or not they also had knowledge of Plaintiff’s marks. For the reasons set forth in the Opposition to Plaintiff’s MSA, “constructive notice” is not applicable to ACPA actions. Applying the concept of “constructive notice” to an ACPA action would essentially turn a violation of the ACPA into a strict liability offense and write the words “bad faith intent” right out of the statute. For the reasons set forth in the Opposition to Plaintiff’s MSA, the Court should not import the “willful blindness” test into the ACPA context. But, even if it did, the Connexus 2 Defendants would not be liable under a “willful blindness” standard for the reasons set forth in the Opposition to Plaintiff’s MSA (i.e., the steps they took to avoid registering domain names that might correspond to trademarks). RESPECTFULLY SUBMITTED this 30th day of August, 2011. /s/William A. Delgado William A. Delgado WILLENKEN WILSON LOH & LIEB LLP 707 Wilshire Boulevard, Suite 3850 Los Angeles, CA 90017 (213) 955-9240 williamdelgado@willenken.com Lead Counsel for Defendants 3 CERTIFICATE OF SERVICE I hereby certify that on August 30, 2011, I electronically filed the foregoing paper with the Court using the ECF system which will send notification of such filing to the following: Enrico Schaefer (P43506) Brian A. Hall (P70865) TRAVERSE LEGAL, PLC 810 Cottageview Drive, Unit G-20 Traverse City, MI 49686 231-932-0411 enrico.schaefer@traverselegal.com brianhall@traverselegal.com Lead Attorneys for Plaintiff Nicholas J. Stasevich (P41896) Benjamin K. Steffans (P69712) BUTZEL LONG, P.C. 150 West Jefferson, Suite 100 Detroit, MI 48226 (313) 225-7000 stasevich@butzel.com steffans@butzel.com Local Counsel for Defendants Anthony P. Patti (P43729) HOOPER HATHAWAY, PC 126 South Main Street Ann Arbor, MI 48104 734-662-4426 apatti@hooperhathaway.com Attorneys for Plaintiff William A. Delgado WILLENKEN WILSON LOH & LIEB LLP 707 Wilshire Boulevard, Suite 3850 Los Angeles, CA 90017 (213) 955-9240 williamdelgado@willenken.com Lead Counsel for Defendants /s/William A. Delgado William A. Delgado WILLENKEN WILSON LOH & LIEB LLP 707 Wilshire Boulevard, Suite 3850 Los Angeles, CA 90017 (213) 955-9240 williamdelgado@willenken.com Lead Counsel for Defendants 4

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