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 Kickstarter Rules Ban Fundraising for Adult Content, Products

Crowdfunding platform Kickstarter has posted new “Mature Content” rules banning projects that involve adult content and sextech.

WebGroup Czech Republic Settles Florida AV Suit, Will Pay $1.2 Million

WebGroup Czech Republic (WGCZ), the parent company of XVideos, XNXX, BangBros and GirlsGoneWild, has settled a lawsuit filed by the state of Florida over those sites’ alleged failure to age-verify Florida users before allowing access to adult content.

AEBN Publishes Popular Searches for March, April

AEBN has published the top search terms for March and April from its straight and gay theaters in all 50 states and the District of Columbia.

Ofcom Investigates Two Sites Over Possible AV Violations

U.K. media regulator Ofcom on Wednesday launched investigations into two adult sites as part of its age assurance enforcement program under the Online Safety Act (OSA).

Brazzers Launches Model Management Division 'Brazzers Creator'

Brazzers has launched its new full-service model management division, Brazzers Creator, offering content management services across multiple platforms.

FTC Promises 'Vigorous' TAKE IT DOWN Act Enforcement

The Federal Trade Commission is warning platforms that the agency will strongly enforce the notice-and-removal requirements of the TAKE IT DOWN Act, which go into effect next week on May 19.

STD Hero Joins Pineapple Support as Sponsor

Better Life Science brand STD Hero has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

2026 XBIZ Miami Speaker, Open-Floor Conversation Guide Lineup Announced

XBIZ is pleased to announce the release of the full speaker lineup for XBIZ Miami, the latest edition of the adult industry’s premier summer conference, set to take place May 11-14 at the Goodtime Hotel in Miami Beach.

2026 XBIZ Miami Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Miami, set to take place May 11-14 at the Goodtime Hotel in South Beach.

UPDATED: Utah VPN Rule Enforcement Paused in Aylo Lawsuit

Provisions of a new Utah law making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification, which were set to come into force on Wednesday, have been put on hold until Sept. 3 in the case of Aylo, which filed suit in the matter.

Show More