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 © 2026 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

New Federal Report Slams Debanking but Ignores Adult Industry

The Office of the Comptroller of the Currency (OCC) on Wednesday released a report on debanking activities at nine large national banks, but omitted any mention of the adult industry, despite previously identifying it as a sector facing banking discrimination.

EU Court Rejects Stripchat Challenge of Past VLOP Designation

The EU’s General Court on Wednesday ruled against Stripchat in a lawsuit seeking to annul a 2023 European Commission decision designating the site as a “very large online platform” (VLOP) under the Digital Services Act (DSA).

Aylo Case Against Utah VPN Rule on Hold Pending Legislative Changes

A federal court has paused Aylo’s suit over a Utah law making adult websites liable if minors bypass age verification by circumventing geolocation efforts, until the state legislature can meets to potentially amend the statute.

German High Court Puts Pornhub, YouPorn 'Network Ban' on Hold

A German high court on Friday temporarily barred a state media regulator from ordering internet providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn in Germany, pending further action by Cypriot and European Union authorities.

Luxembourg Media Regulator Fines LiveJasmin for AV Noncompliance

The Luxembourg Independent Audiovisual Authority (ALIA) has levied a fine of 25,000 euros (approximately $28,000) against webcam platform LiveJasmin for failing to comply with provisions of the country’s Electronic Media Law.

AdultHTML Introduces Subscription Option for Website Owners

AdultHTML has added a subscription option for its web development service, allowing site owners to pay a monthly fee for access to developers and tools.

French Parliament Rejects Ban on Purchase of 'Remote' Sexual Services

The French National Assembly has backed off from a proposal to criminalize the purchase, and/or facilitation by online platforms, of sexual services performed remotely by streamers and custom content creators.

2027 XBIZ Exec Awards Pre-Nominations Period Opens

XBIZ is pleased to announce that the pre-nomination period for the 2027 XBIZ Exec Awards, the adult industry’s preeminent career honors, begins Wednesday and runs through Oct. 14.

Takedown Piracy Reports Infiltration, Monitoring of Mega.nz

Takedown Piracy has reported that it successfully infiltrated Mega.nz folders and identified and removed nearly two million instances of stolen content.

Pornhub Unblocks Australia Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in Australia will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s Australian age-verification process.

Show More