676 F.Supp.3d 909
D. Colo.2023Background:
- Mira Holdings registered IDEACITY.COM with NameBright in December 2019 and has parked/monetized the domain; it never used the domain for educational services and alleges it never offered to sell IDEACITY.COM to ZoomerMedia or provided false WHOIS contact info.
- ZoomerMedia owns a U.S. Class 41 trademark for “IdeaCity” (educational services) and filed a UDRP complaint with the Canadian International Internet Dispute Resolution Centre on June 8, 2022.
- Following the UDRP filing, NameBright locked IDEACITY.COM and a CIIDRC panel ordered transfer of the domain to ZoomerMedia on July 29, 2022; the domain remains locked pending transfer.
- Mira sued in federal court seeking (1) declaratory judgment under 28 U.S.C. § 2201 that its registration/use does not violate the ACPA or the Lanham Act and (2) injunctive relief under 15 U.S.C. § 1114(2)(D)(v) (reverse-domain-name-hijacking remedy under the ACPA).
- ZoomerMedia moved to dismiss under Rule 12(b)(6); Mira did not file a response. The Court evaluated the motion on the merits.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Adequacy of claim under 15 U.S.C. § 1114(2)(D)(v) (reverse-domain-hijacking/injunctive relief) | Mira alleges it registered IDEACITY.COM, parked it with monetizers, has no intent to divert customers, never offered to sell the domain to ZoomerMedia, and did not supply false contact info — therefore no bad-faith intent to profit. | ZoomerMedia contends Mira’s allegations are conclusory, lacks trademark/use rights, and admitted attempting to sell the domain, so Mira didn’t plead lack of bad faith. | Denied dismissal — allegations sufficiently plead lack of bad faith and a plausible § 1114(2)(D)(v) claim. |
| Declaratory judgment under 28 U.S.C. § 2201 re: Lanham Act infringement/dilution | Seeks a declaration that registration/use of IDEACITY.COM does not infringe/dilute ZoomerMedia’s mark and that Mira may keep the domain. | ZoomerMedia argues no actual controversy and the claim is unclear or duplicative. | Court found an actual controversy exists (UDRP action, statements about confusion, future use) and denied dismissal as to Lanham Act declaratory relief. |
| Declaratory judgment under 28 U.S.C. § 2201 as to the ACPA (15 U.S.C. § 1125(d)) | Requests declaration that IDEACITY.COM does not violate the ACPA. | Argues this is duplicative of the § 1114(2)(D)(v) reverse-domain claim and serves no useful purpose. | Granted dismissal without prejudice as duplicative of the § 1114(2)(D)(v) claim. |
| Statutory damages under 15 U.S.C. § 1117(d) | Seeks statutory damages instead of actual damages. | § 1117(d) applies only to affirmative cybersquatting violations under § 1125(d)(1), not to reverse-domain-hijacking claims. | Granted dismissal with prejudice — statutory damages unavailable here. |
Key Cases Cited
- Khalik v. United Air Lines, 671 F.3d 1188 (10th Cir. 2012) (pleading standard and plausibility required to survive Rule 12(b)(6))
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility pleading standard)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (courts need not accept conclusory allegations)
- MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118 (2007) (requirements for an actual controversy under the Declaratory Judgment Act)
- Barcelona.com, Inc. v. Excelentisimo Ayuntamiento De Barcelona, 330 F.3d 617 (4th Cir. 2003) (describing ACPA protections for registrants and reverse-domain actions)
- Utah Lighthouse Ministry v. Foundation for Apologetic Info. & Research, 527 F.3d 1045 (10th Cir. 2008) (bad-faith intent to profit can be shown by offering domain to trademark owner at extortionate price)
- Bryson v. Gonzales, 534 F.3d 1282 (10th Cir. 2008) (plaintiff must allege material elements to sustain recovery)
- Cardinal Chemical Co. v. Morton Int'l, Inc., 508 U.S. 83 (1993) (party seeking declaratory judgment bears burden to show actual controversy)
- RE/MAX, LLC v. Quicken Loans Inc., 295 F. Supp. 3d 1163 (D. Colo. 2018) (discussion of pleading plausibility standard under Rule 12(b)(6))
