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

Opinion: Why Device-Based Age Verification is the Key to Protecting Minors Online

Across the United States, state legislators on both sides of the aisle have attempted to tackle the crucial goal of preventing minors from accessing adult content.

TMZ: VMG's Mike Moz in Talks About 'Potential Collab' With Yeezy

Vixen Media Group’s Mike Moz told TMZ that the company has been discussing a potential collaboration with Kanye West’s brand Yeezy.

Age Verification: FSC's Mike Stabile Reports from the Frontlines

Two years into the religiously-inspired crusade to ban free access to adult material in the U.S. through carefully drafted "age verification" legislation, the constant onslaught of state-by-state proposals and laws — many of them copied from each other — can be hard to follow.

Written Erotica Platform 'Hevvn' Launches

Hevvn, a new platform aimed at erotica writers seeking to publish, promote and profit from their work, debuted Thursday.

Sssh.com's Angie Rowntree Speaks at Brown University

Sssh.com founder Angie Rowntree spoke at a Brown University class last week, discussing several topics related to adult filmmaking.

Online Industry Veteran Joe E. Passes Away

Online industry veteran Joe E has passed away, according to friends and industry associates.

Judge Acquits Backpage Defendants of Most Charges Before 2nd Retrial

A federal judge acquitted former co-owner of Backpage.com Michael Lacey and two co-defendants on most of the counts remaining from the protracted trial launched against the website operators by the Justice Department in 2018.

Adult Time Partners With Animation Studio 3DGspot

Adult Time has signed a deal to stream content from animation studio 3DGspot.

Georgia Gov. Brian Kemp Signs Age Verification Bill Into Law

Republican Gov. Brian Kemp this week signed into law a bill that includes provisions requiring age verification for viewing adult content in Georgia, mirroring legislation being sponsored around the country by anti-porn religious conservative activists.

AEBN Publishes Popular Searches by Country for February, March

AEBN has released the popular searches from its straight and gay theaters in more than three dozen countries during February and March.

Show More