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Porsche Files Lawsuit Against 130 Internet Domain Names

13 January 1999

Porsche Files Lawsuit Against 130 Internet Domain Names For Trademark Infringement

    ATLANTA, Jan. 13 -- In an action taken to protect the Porsche
name and trademark, Porsche AG and Porsche Cars North America have filed an
unprecedented lawsuit against approximately 130 Internet domain names that use
the trademark Porsche or a variation of the trademark Porsche.  The in rem
(i.e., against the thing) complaint was filed on Jan. 6, 1999, in the United
States District Court for the Eastern District of Virginia.
    "As the Internet has expanded, Porsche has become the victim of trademark
infringement," said Patricia R. Britton, General Counsel of Porsche Cars North
America. "Porsche is one of the most recognized and respected trademarks in
the world. As a result, trademark infringers want to capitalize on the good
will and reputation of Porsche in establishing their presence on the Internet.
These infringers range from operators of hardcore pornographic web sites to
speculators who attempt to profit from the registration and trafficking of
domain names that use the trademark Porsche."
    In an in rem lawsuit, a plaintiff sues property or things rather than
persons or entities. Therefore, Porsche is not suing the individuals or
entities that registered the domain names, but the domain names themselves.
The suit was filed in Virginia because the domain names and their registry
certificates are located with Network Solutions, Inc., headquartered in
Herndon, Virginia.  Upon filing the lawsuit, Network Solutions will deposit
the domain name registry certificates with the Clerk of the Court and the
Court will then have complete dominion and jurisdiction over the domain names.
The Court will then be requested to allow Porsche to give notice to the
registrants of the domain names who can then appear in Court and explain why
they should be allowed to continue to use the domain names. If a domain name
is not claimed by a registrant who has a legitimate reason for registering
and/or using the domain name, Porsche will request that the Court delete or
transfer the domain name to Porsche.
    Porsche is proceeding in an in rem lawsuit because it has discovered that
many of the registrants of the domain names infringing on the trademark
Porsche use fictitious names and addresses, and provide other false
information in registering the domain names to insulate themselves from
service of process. Some of the domain names are registered by United States
companies or individuals who create fictitious offshore corporations that then
register the domain names. The anonymity of the Internet allows trademark
infringers to establish such fronts so that service of process on the
registrants is impossible.
    "Trademark infringement on the Internet places a huge burden on famous
trademark holders in policing domain names and enforcing trademark rights,"
Britton added. "Choosing to ignore such practices and infringements is not an
option to trademark owners because the trademark laws require them to police
their trademarks. Porsche has spent millions of dollars and many years
promoting the good will associated with its trademarks. In a very real sense,
the trademarks are the crown jewels of Porsche and must be protected as such."