Justia Internet Law Opinion Summaries

Plaintiff filed a complaint against defendants, Virtual City Vision, Inc. ("VSV") and Van James Bond Tran ("Tran"), alleging federal, state, and common law claims when defendants' newportnews.com domain name was confusingly similar to plaintiff's Newport News registered trademarks and its newport-news.com domain name. VCV raised numerous issues on appeal: the magistrate judge's failure to recuse; the court's assertion of personal jurisdiction over Tran, the district court's grant of summary judgment to plaintiff on the Anticybersquatting Consumer Protection Act ("ACPA") claim; the district court's denial of VCV's request to file a counterclaim; the district court's award of statutory damages and attorney's fees to plaintiff and sanctions against VCV's counsel; and the district court's finding that VCV was not the prevailing party for purposes of an award of attorneys' fees. The court held that the magistrate judge did not abuse his discretion in finding that the circumstances would not cause a reasonable observer to question his impartiality, the district court found sufficient facts to pierce the corporate veil and exercise jurisdiction over Tran, and the district court's grant of summary judgment on the ACPA claim was proper. The court also held that the district court did not abuse its discretion in denying VCV's motion for leave to file a counterclaim. The court further held that the district court did not clearly err in finding that VCV's infringement was exceptional or abused its discretion in awarding attorneys' fees, that VCV's attempt to profit from plaintiff's mark by creating a website focused on women's fashion was sufficiently egregious to merit the statutory damages award, that the award of sanctions was not an abuse of discretion, and that plaintiff's abandonment claim did not make VCV a prevailing party.

Cameron Winklevoss, Tyler Winklevoss, and Divya Narendra ("Winklevosses") sought to intervene after a district court entered judgment enforcing the Term Sheet and Settlement Agreement ("Settlement Agreement") signed by Facebook, the Winklevosses, and the Winklevosses' competing social network site, ConnectU, where the Settlement Agreement envisioned that Facebook would acquire all of ConnectU's shares in exchange for cash and a percentage of Facebook's common stock. At issue was whether the Settlement Agreement was enforceable where the Winklevosses claimed that they did not discover the facts that gave rise to their Rule 10b-5 claims under the Securities and Exchange Act of 1934 ("Act") until after they signed the Settlement Agreement's release of claims and whether the releases foreclosed their challenge to the Settlement Agreement where section 29(a) of the Act precluded a mutual release of unknown securities fraud claims arising out of negotiations to settle a pending lawsuit. The court held that the district court correctly concluded that the Settlement Agreement was enforceable and intended to release claims arising out of the settlement negotiations where the release was valid under section 29(a) when the Settlement Agreement was meant to end a dispute between sophisticated parties acting in an adversarial setting that was characteristic of litigation and could not be interpreted as leaving open the door to litigation about the settlement process.