129 F. Supp. 3d 1158
D. Colo.2015Background
- General Steel sells prefabricated steel buildings and briefly employed Ethan Chumley, who founded Armstrong Building Systems in competition with General.
- Chumley purchased generalsteelscam.com and hosted defamatory material about General; later created steelbuildingcomplaints.com after a ruling transferred the site to General.
- Chumley/Armstrong allegedly used back-linking SEO and pay-per-click tactics to promote steelbuildingcomplaints.com and disadvantage General in search results.
- General alleges six claims against Armstrong: Lanham Act false advertising, Anti-Cybersquatting Act domain disputes, common-law libel, unjust enrichment, civil conspiracy, and misappropriation of trade secrets.
- Armstrong asserts counterclaims for copyright infringement and false advertising related to Armstrong’s logo and advertising practices.
- The Court resolves motions for summary judgment and discovery disputes, including Armstrong’s objections to a magistrate’s denial of certain discovery requests.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Agency for JEMSU content | Armstrong argues JEMSU acted as a General contractor, not an independent entity. | General contends JEMSU was independent and not General’s agent. | Genuine dispute of fact; agency not entitled to summary judgment. |
| Whether JEMSU blog posts are advertising | Armstrong claims JEMSU content is false advertising under Lanham Act. | General argues blog posts were not advertising or not commercially disseminated. | Blog-post claims of false advertising granted summary judgment for General on the basis of lack of dissemination. |
| Pay-per-click ads as advertising | These ads were false representations promoting General as a manufacturer. | General allegedly approved/controlled some pay-per-click content. | Lanham Act claim premised on pay-per-click ads may proceed; evidence supports General review/approval. |
| False advertising of General's own statements | Statements like 100% customer satisfaction and zero unresolved issues are false and actionable. | General argues puffery or non-definitive terms; some statements are unverifiable. | Court denies General’s motion for summary judgment; findings support falsity as to specific, measurable claims. |
| Anti-cybersquatting Act domain | General seeks to hold Armstrong for registration/use of confusingly similar domain. | Disputed similarity and ownership issues; WIPO findings not controlling here. | Armstrong is entitled to summary judgment; domain not confusingly similar; ownership addressed separately. |
Key Cases Cited
- Procter & Gamble Co. v. Haugen, 222 F.3d 1262 (10th Cir. 2000) (tests for falsity and likelihood of deception under Lanham Act)
- Sports Unlimited, Inc. v. Lankford Enterprises, Inc., 275 F.3d 996 (10th Cir. 2002) (dissemination necessary for advertising claims)
- Hutchinson v. Pfeil, 105 F.3d 562 (10th Cir. 1997) (presumed injury only in direct-comparison advertising contexts)
- Porous Media Corp. v. Pall Corp., 110 F.3d 1329 (8th Cir. 1997) (presumption of injury applies to certain comparative advertising cases)
- Ortho Pharmaceutical Corp. v. Cosprophar, Inc., 32 F.3d 690 (2d Cir. 1994) (flexible approach to injury and causation in Lanham Act claims; requires proof of injury)
- Coca-Cola Co. v. Tropicana Products Inc., 690 F.2d 312 (2d Cir. 1982) (causation and market studies used to demonstrate deception)
- Barefoot Architect, Inc. v. Bunge, 632 F.3d 822 (3d Cir. 2011) (oral copyright assignments ratified in writing later may be effective)
