AOL Settles With Playboy

DULLES, Virginia -- Barely a week after Playboy Enterprises was given the greenlight by an appeals court to proceed in a trademark infringement suit against Netscape Communications Inc., a unit of multimedia giant AOL/Time Warner, the two companies have settled, an AOL spokesperson announced.

Prior to today's announcement, there was industry-wide speculation that Playboy could potentially take AOL to the cleaners for damages that date back as far as five years. However, the two companies have decided to settle quietly outside of court.

"A settlement has been reached on this pending litigation," said Nicholas Graham, a spokesman for AOL. "The terms of the settlement are not disclosable."

The U.S. Appeals Court determined on Jan. 15 that a lower court had wrongly ruled in the case against Playboy. Charges stemmed from a 1999 case against now-defunct Excite.com and Netscape for infringing on the "Playboy" and "Playmate" trademarks using misleading search engine banner ads that had nothing to do with Playboy content.

The appeals court gave Playboy the right to sue Netscape for liability.

At the time the infringement occurred, Netscape was using Excite's search engine technology on its site.

In its original lawsuit, Playboy named around 400 words the two companies had used that insinuated a relationship with Playboy Enterprises and deliberately confused consumers. Playboy contended that the misleading banner "tarnished and diluted" its brand name.

The case was originally lost in 2001, but the appeals court last week decided that the Playboy trademark was equally protected in the virtual world as it was in more traditional mediums.

The appeals court decision to overturn an earlier ruling was one of the first times an appellate court has weighed in on the issue of search engine advertising as it relates to trademark infringement.

"The decision makes clear that the rules apply in the actual world with equal force to the virtual world," Playboy's attorney was quoted as saying at last week's ruling. "In the Internet as in the actual world, trademarks are not to be used in a way that is confusing or that dilutes the value of the mark."

In a similar vein, Google filed a complaint in a San Jose court in November 2003 in an effort to make sure that its method for keyword search advertising is within the boundaries of the law, in particular, trademark law.

Google has been in battle with a company called American Blind & Wallpaper Factory that has threatened to sue Google if it doesn't stop selling keyword phrases that the company claims violate its trademarks, CNET reports.

Google reportedly agreed to block keywords that directly infringe on American Blind & Wallpaper trademarks, but the search engine has refused to block all other similar phrases that American Blind feels infringe on its trademark.

Google is no stranger to similar trademark infringement threats. The search engine has also had rifts with eBay over trademark disputes, and luggage maker Louis Vuitton fined Google last year for trademark infringement in a French court.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Aylo Willing to Work With Australia's Online Censor on Device-Based AV Solutions

The office of Australia’s top online censor, unelected eSafety Commissioner Julie Inman Grant, released a new roadmap for implementing age verification according to the country’s Online Safety Act.

Spain's Technology Minister Unveils Soon-to-be-Mandatory Age Verification App

Spain’s anti-sex work and anti-porn Socialist Party (PSOE) government led by Prime Minister Pedro Sánchez unveiled a new age verification app that will become a mandatory step to access any adult content by anyone in the country starting in September.

FSC Drops Opposition to California Age Verification Bill After Amendments

Free Speech Coalition (FSC) has dropped its formal opposition to California’s age verification bill AB 3080, after an amendment secured through months of discussions with the bill’s author was heard by the Senate Judiciary Committee.

SCOTUS Agrees to Hear Texas Age Verification Challenge

The United States Supreme Court granted on Tuesday the petition for a writ of certiorari in the Free Speech Coalition-led challenge to Texas’ age verification law, agreeing to hear the case in the next term.

Dorcel Group Acquires LifeSelector

Dorcel Group has acquired interactive content company LifeSelector.

Etsy Updates Policy to Ban Sale of Most Adult Pleasure Products, Content

Etsy will ban sales of most pleasure products and content that depicts sex acts and genitalia starting July 29.

Jamie Page Is LoyalFans' 'Featured Creator' for July

LoyalFans has named Jamie Page as its Featured Creator for July.

Byborg's Le Shaw Research Institute Teams Up With SWOP Behind Bars

LiveJasmin parent company Byborg Enterprises’ Le Shaw International Sexual Health and Wellness Research Institute has joined forces with U.S.-based sex worker advocacy group SWOP Behind Bars.

AI Erotic Storytelling Platform 'Erota' Launches

Erota, a new AI-powered erotic storytelling platform, has debuted.

Indiana Court Blocks Age Verification Law

A U.S. district court in Indiana has blocked the state's age verification law from taking effect this coming Monday, July 1.

Show More