79 F. Supp. 3d 1095
N.D. Cal.2015Background
- Bandago operates van rental service under BANDAGO since 2003 and holds USPTO registration for BANDAGO (2010).
- Defendants include Gad Sebag, Schneior Zilberman, and corporate entities Image Rent A Car, Inc. and Van Rental Co., Inc., allegedly interrelated.
- Defendants’ control and use of domains, websites, and ads allegedly exploited the BANDAGO mark (bandago.net) and related Google AdWords.
- Article and website text from Bandago was copied onto Image’s site, and Digby holds a copyright on Bandago website text.
- Group Travel Solution, Inc. acquired assets including vehicles and websites connected to Image; Van and Image later filed for bankruptcy; Digby’s suit was stayed then lifted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Trademark infringement by Corporate Defendants | Digby’s mark BANDAGO was used via domain and ads. | Van and Image concede infringement responsibility. | Van and Image liable for trademark infringement. |
| Copyright infringement by Corporate Defendants | Defendants copied Bandago text; Digby owns copyright. | Defendants copied only limited text; infringement disputed. | Van and Image liable for copyright infringement. |
| Cybersquatting under ACPA | Domain bandago.net identical to BANDAGO; bad faith to profit; diverted traffic. | Dispute over bad faith factors; some factors neutral. | Van and Image liable for cybersquatting; willful bad faith found. |
| Sebag and Zilberman personal liability/alter ego | Sebag and Zilberman personally liable; alter ego theory applies. | Evidence conflicting; credibility issues; alter ego liability not established on summary judgment. | Direct liability: genuine dispute; Alter ego: deny summary judgment for both parties. |
| Damages: statutory and actual; disgorgement | Seek $100,000 statutory damages for cybersquatting and disgorgement of profits. | Damages calculation unreliable; profits and losses not proven. | Statutory damages awarded at $25,000; disgorgement of profits denied; actual damages unresolved. |
Key Cases Cited
- Transgo, Inc. v. Ajac Transmission Parts Corp., 768 F.2d 1001 (9th Cir. 1985) (officer liability for torts performed as part of corporate role)
- Brookfield Communications, Inc. v. Western Coast Entertainment Corp., 174 F.3d 1036 (9th Cir. 1999) ( trademark infringement requires confusing similarity to a valid mark)
- Ellison v. Robertson, 357 F.3d 1072 (9th Cir. 2004) (ownership and registration establish prima facie copyright validity)
- United Fabrics Int’l, Inc. v. C & J Wear, Inc., 630 F.3d 1257 (9th Cir. 2011) (copyright registration as prima facie evidence of validity)
- Forever endeav. Music, Inc. v. S.M.B., Inc., 701 F. Supp. 791 (W.D. Wash. 1988) (corporate officer liability for infringing acts)
- Lindy Pen Co. v. Bic Pen Corp., 982 F.2d 1400 (9th Cir. 1993) (damages must be proven with reasonable certainty)
- Invicta Plastics (USA) Ltd. v. Mego Corp., 523 F. Supp. 619 (S.D.N.Y. 1981) (damages must be supported by credible evidence)
- Polo Fashions, Inc. v. Branded Apparel Merch., Inc., 592 F. Supp. 648 (D. Mass. 1984) (officer liability and corporate actions under veil theory)