[Politech] "Gripe" site operator wins court victory [fs]

From: Declan McCullagh (declan@private)
Date: Sun Jun 06 2004 - 21:13:39 PDT

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    [Whoops... missed Paul's message the first time. --Declan]
    
    
    -------- Original Message --------
    Subject: Re: [Politech] Ex-employee of networking firm nastygrammed	over 
    "tellall" site [fs]
    Date: Tue, 01 Jun 2004 10:05:49 -0400
    From: Paul Levy <plevy@private>
    To: <declan@private>
    
    spoeaking of this topic, I don't think you have even mentioned our win
    in Bosley  Medical v. Kremer (bosleymedical.com and
    bosleymedicalviolations.com).  Bosley has just filed its notice of
    appeal, and our motion for an award of attorney fees is due to be heard
    on July 2.
    
    
    -------- Original Message --------
    Subject: New free speech victory for gripe site operator
    Date: Wed, 05 May 2004 16:17:57 -0400
    From: Paul Levy <plevy@private>
    To: <declan@private>
    
    I am pleased to announce that one more court has ruled that the
    trademark laws allow a consumer critic to erect a web site that
    criticizes a company and uses the company's trademark as its domain
    name, without even inclusion of the word "sucks" or some other negative
    word in the domain name.  Judge William Hayes of the US District Court
    in San Diego dismissed the complaint of Bosley Medical Institute against
    the web sites established by Michael Kremer at www.bosleymedical.com and
    www.bosleymedicalviolations.com on two separate and independent grounds
    - the web sites were completely noncommercial, and nobody who actually
    reached the web sites could possibly be confused about whether Bosley
    was their sponsor.  An important development on the "non-commercial use"
    issue was that the court found non-commercial use even though, on one of
    his web sites, Kremer provided a link to the Google archive of the
    alt.baldspot newsgroup, on which Google accepts advertising.
    
    We have been warning that the law protecting non-commercial web sites
    of this sort against meritless trademark claims has become so clear that
    trademark owners risk being held liable for attorney fees when they file
    such suits.  In this case, Bosley had already lost in the UDRP, which
    found it to be a case of cyberbullying, but nevertheless took Kremer to
    court, and dragged him through nearly three years of legal proceedings.
    Moreover, this is a particularly venal plaintiff - we have checked
    Public Citizen's pioneering "Questionable Doctors" database, which
    allows consumers to check whether doctors were subjected to medical
    board discipline in other states as well as their own -  and we have
    found that there is only one doctor in the whole country who has been
    subjected to discipline in more states that Larry Lee Bosley.
    Consequently, we have decided that this is an excellent first case to
    seek an award of attorney fees on behalf of a domain name defendant.
    
    
    
    For Immediate Release: 					Contact:
    Paul Alan Levy (202) 588-1000
    May 5, 2004							
         Valerie Collins (202) 588-7742
    
    Dissatisfied Hair Restoration Customer Has Right to Criticize
    Company on Web, Judge Rules
    			
    Bosley Medical Institute, Which Has Offices in 31 States and D.C.,
      Loses Trademark Infringement Case
    
    	WASHINGTON, D.C. - A dissatisfied customer of a California hair
    restoration company has a right to use the company's name in an Internet
    site he established to criticize the company, a federal judge has
    decided.
    	
    	In a ruling issued Monday, U.S. District Judge William Q. Hayes
    of the Southern District of California tossed out the lawsuit filed by
    Bosley Medical Institute against former customer Michael Kremer, a
    California resident.  In it, Bosley alleged that Kremer violated
    trademark laws by using the company's name in his Web sites,
    www.bosleymedical.com and www.bosleymedicalviolations.com.
    
    	"This is a tremendous victory and once again affirms that people
    have the right to air their views on the Web," said Paul Alan Levy, the
    Public Citizen attorney who represented Kremer. "Mr. Kremer has every
    right to post his views about Bosley on the Internet for all to see."
    
    	Kremer set up the site after becoming dissatisfied with hair
    restoration services he paid Bosley Medical to provide to him in 1991.
    Bosley Medical is based in California and has additional offices in
    Arkansas, Arizona, Colorado, Connecticut, Florida, Georgia, Illinois,
    Indiana, Kansas, Louisiana, Massachusetts, Michigan, Minnesota,
    Missouri, Nebraska, Nevada, New York, North Carolina, Iowa, Ohio,
    Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas,
    Tennessee, Utah, Virginia, Washington, and the District of Columbia, as
    well as British Columbia and Mexico.
    
    	In January 2000, Kremer registered www.bosleymedical.com, then
    notified the company of his plans, to give it a chance to object. The
    company responded by filing a complaint for arbitration with World
    Intellectual Property Organization (WIPO), a group in Switzerland.
    Meanwhile, Kremer refrained from posting any material on his site.
    
    	After the WIPO arbitrator ruled in Kremer's favor and
    reprimanded Bosley for attempting to stifle critical speech, Kremer
    registered the domain name www.bosleymedicalviolations.com and began to
    post complaints about the company.
    
    	Bosley then sued Kremer in Illinois on the grounds that one of
    its offices was located there. The case was transferred to San Diego
    because Kremer could not be sued so far from home.
    
    	In the most recent suit, Bosley contended that Kremer was
    violating the company's trademark. But to prove that, Bosley had to show
    that Kremer was using the company's name for commercial gain. Kremer was
    not; Kremer's sites are purely informational and Kremer receives no
    income from them, the judge decided.  Further, there is no way a visitor
    to one of Kremer's sites could mistake it for Bosley's site.
    
    Bosley Medical has been disciplined in the past for a variety of
    practices. It was fined $644,724 in 1996 over its medical and
    advertising practices, and its medical license was suspended and placed
    on probation for five years by the California medical board in 1999.
    Bosley also has faced discipline charges in 20 other states. Bosley
    currently is facing probation revocation hearings in California.
    
    "For four years, Bosley Medical has relentlessly pursued Mr. Kremer on
    what we knew all along were bogus claims," Levy said. "Bosley owes
    Kremer a gigantic apology for dragging him through these court
    proceedings for so long. We hope that other companies take note of this
    case and conclude that going after their customers simply doesn't pay."
    
    Charles Bird of Luce, Forward, Hamilton & Scripps LLP, www.luce.com,
    participated as San Diego counsel in defending Kremer.
    
    ###
    Public Citizen is a national, nonprofit consumer advocacy organization
    based in Washington, D.C. For more information, please visit
    www.citizen.org.
    
    
    
    		
    
    
    Paul Alan Levy
    Public Citizen Litigation Group
    1600 - 20th Street, N.W.
    Washington, D.C. 20009
    (202) 588-1000
    http://www.citizen.org/litigation/litigation.html
    
    
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