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deVere Group GmbH v. Opinion Corp.

Citations: 877 F. Supp. 2d 67; 2012 U.S. Dist. LEXIS 97812; 2012 WL 2884986Docket: No. 11-cv-3360 (FB)(LB)

Court: District Court, E.D. New York; July 13, 2012; Federal District Court

Narrative Opinion Summary

In this case, deVere Group GmbH, a Swiss-based international financial consulting firm, brought a lawsuit against Opinion Corp. and its executives, alleging violations of the Lanham Act, specifically trademark infringement, unfair competition, and false designation of origin under Section 43(a). DeVere claimed that Opinion Corp.'s consumer complaint website, PissedConsumer.com, improperly used its trade names, causing potential consumer confusion. The court considered whether deVere's trade names were distinctive and valid under U.S. law, focusing on deVere's Miami office as evidence of U.S. commerce. Despite acknowledging the distinctiveness of deVere's trade names, the court found deVere failed to demonstrate a likelihood of confusion or intentional deception, as required for a successful claim under the 'initial interest confusion' doctrine. The court noted that the negative nature of the website's content made it unlikely consumers would believe deVere endorsed the site. Consequently, the court granted the defendants' motion to dismiss deVere's Lanham Act claims due to insufficient evidence. DeVere's additional claims of false advertising and cyberpiracy were not pursued further and were deemed abandoned. The court's decision underscores the necessity of demonstrating consumer confusion and valid trademark use within U.S. commerce for Lanham Act protection.

Legal Issues Addressed

Distinctiveness and Validity of Trade Names

Application: The court evaluated whether deVere's trade names are distinctive and valid under U.S. law, particularly focusing on deVere's operations in the U.S. and its Miami office.

Reasoning: While defendants acknowledge the distinctiveness of DeVere's trade names, they assert DeVere has not demonstrated a trademark valid under U.S. law due to a lack of specific allegations about its U.S. operations.

Initial Interest Confusion Doctrine

Application: DeVere's invocation of the 'initial interest confusion' doctrine was rejected, as the court found no intentional deception or competition between the parties.

Reasoning: DeVere's argument based on the 'initial interest confusion' doctrine is rejected, as it requires showing intentional deception and is inapplicable here; PissedConsumer.com does not compete with deVere’s financial services.

Likelihood of Confusion Standard

Application: The court assessed whether Opinion Corp.'s use of deVere's trade names on a consumer complaint site could cause confusion about approval by deVere, ultimately finding that it did not.

Reasoning: Consumers visiting PissedConsumer.com are unlikely to believe that deVere sponsored or approved the website due to the negative connotations of the term 'pissed' and the critical content about deVere's services.

Role of Polaroid Factors in Trademark Cases

Application: The court decided not to evaluate the Polaroid factors, as they were not significant in determining the outcome of this case.

Reasoning: The court also decided not to evaluate the Polaroid factors as they did not significantly influence the case.

Trademark Infringement under Section 43(a) of the Lanham Act

Application: DeVere alleged that Opinion Corp. used its trade names on PissedConsumer.com in a way that could mislead consumers about DeVere's sponsorship or affiliation, constituting trademark infringement.

Reasoning: DeVere's legal claim alleges trademark infringement, unfair competition, and false designation of origin under Section 43(a) of the Lanham Act.