Porsche Cars North America, Incorporated Dr. Ing. H.C.F. Porsche Ag v. porsche.net porscheclub.net porscheloans.com porschelease.com porscheloan.com, and porsch.com, an Internet Domain Name and the Following Internet Domain Names: porschecar.com porschagirls.com 928 porsche.com accessories4porsche.com allporsche.com beverlyhillsporsche.com boxster.com boxster.net boxsters.com buyaporsche.com calporsche.com e-porsche.com everythingporsche.com formulaporsche.com iansporsche.com idoporsche.com laporsche.com lynchporsche.com myporsche.com newporsche.com parts4porsche.com po[zero]rsche.com passion-porsche.com porsche.org Porsche-911.com Porsche-911.net Porsche-944.com porsche-accessories.com porsche-autos.com porsche-books.com porsche-carrera.com porsche-cars.com porsche-city.com porsche-classic.com porsche-exchange.com porsche-leasing.com porsche-lynn.com porsche-modellclub.com porsche-munich.com porsche-net.com porsche-ni.com porsche-online.com porsche-rs.com porsche-sales.com porsche-service.com porsche-supercup.com porsche-web.com Porsche356.com porsche4me.com porsche4sale.com Porsche911.com Porsche911.net Porsche911.org porsche911parts.com Porsche914.com Porsche924.com Porsche944.com Porsche993.com Porsche996.com porscheag.com porscheaudiparts.com porschebooks.com porscheboxter.com porschecarrera.com porschecars.com porschecarsales.com porschecarsforsale.com porschecasino.com porschechat.com porscheclassified.com porscheclub.org porscheconnection.com porschedealer.com porschedealer.net porschedealers.com porschedealers.net porschedirect.com p[orschedirect.net] porschedoctor.com porschefans.com porschefleet.com porscheformula.com porschefx.com porschegt.com porschehaus.com porschelynn.com porschemail.com porschenow.com porschenut.com porscheonline.com porscheowner.com porscheowners.com porscheownersclub.com porscheparts.com porscheparts.net porschephiles.org porscheproducts.com porscheracing.com porscherims.com porsches.com porschesales.com porschesalestoday.com porschescape.com porscheservice.com porschesplayhouse.com porschestore.net porschestore.com porschestuff.com porschesucks.com porschetoday.com porschetrader.com porscheweb.com porscheworld.com porschezentrum.com porschezentrum.net porsche.com pristineporsche.com porsche.com ultimateporsche.com usedporsche.com usedporsches.com winaporsche.com, Porsche Cars North America, Incorporated Dr. Ing. H.C.F. Porsche Ag v. porsche.net porscheclub.net, and porsch.com, an Internet Domain Name and the Following Internet Domain Names: porschecar.com porschagirls.com 928porsche.com accessories4porsche.com allporsche.com beverlyhillsporsche.com boxster.com boxster.net boxters.com buyaporsche.com calporsche.com e-porsche.com everythingporsche.com formulaporsche.com ianporsche.com idoporsche.com laporsche.com lynchporsche.com myporsche.com newporsche.com parts4porsche.com po[zero]rsche.com passion-porsche.com porsche.org Porsche-911.com Porsche-911.net Porsche-944.com porsche-accessories.com porsche-autos.com porsche-books.com porsche-carrera.com porsche-cars.com porsche-city.com porsche-classic.com porsche-exchange.com porsche-leasing.com porsche-lynn.com porsche-modellclub.com porsche-munich.com porsche-net.com porsche-ni.com porsche-online.com porsche-rs.com porsche-sales.com porsche-service.com porsche-supercup.com porsche-web.com Porsche356.com porsche4me.com porsche4sale.com Porsche911.com Porsche911.net Porsche911.org porsche911parts.com Porsche914.com Porsche924.com Porsche944.com Porsche993.com Porsche996.com porscheag.com porscheaudiparts.com porschebooks.com porscheboxter.com porschecarrera.com porschecars.com porschecarsales.com porschecarsforsale.com porschecasino.com porschechat.com porscheclassified.com porscheclub.org porcheconnection.com porschedealer.com porschedealer.net porschedealers.com porschedealers.net porschedirect.com porschedirect.net porschedoctor.com porschefans.com porschefleet.com porscheformula.com porschefx.com porschegt.com porschehaus.com porschelease.com porscheloan.com porscheloans.com porschelynn.com porschemail.com porschenow.com porschenut.com porscheonline.com porscheowner.com porscheowners.com porscheownersclub.com porscheparts.com porscheparts.net porschephiles.org porscheproducts.com porscheracing.com porscherims.com porsches.com porschesales.com porschesalestoday.com porschescape.com porscheservice.com porschesplayhouse.com porschestore.com porschestore.net porschestuff.com porschesucks.com porschetoday.com porschetrader.com porscheweb.com porscheworld.com porschezentrum.com porschezentrum.net porsche.com pristineporsche.com porsche.com ultimateporsche.com usedporsche.com porschestore.com usedporches.com winaporsche.comPorsche Cars North America, Incorporated Dr. Ing. H.C.F. Porsche Ag v. porsche.net porscheclub.net porscheloans.com porschelease.com porscheloan.com, and porsch.com, an Internet Domain Name and the Following Internet Domain Names: porschecar.com porschagirls.com 928 porsche.com accessories4porsche.com allporsche.com beverlyhillsporsche.com boxster.com boxster.net boxsters.com buyaporsche.com calporsche.com e-porsche.com everythingporsche.com formulaporsche.com iansporsche.com idoporsche.com laporsche.com lynchporsche.com myporsche.com newporsche.com parts4porsche.com po[zero]rsche.com passion-porsche.com porsche.org Porsche-911.com Porsche-911.net Porsche-944.com porsche-accessories.com porsche-autos.com porsche-books.com porsche-carrera.com porsche-cars.com porsche-city.com porsche-classic.com porsche-exchange.com porsche-leasing.com porsche-lynn.com porsche-modellclub.com porsche-munich.com porsche-net.com porsche-ni.com porsche-online.com porsche-rs.com porsche-sales.com porsche-service.com porsche-supercup.com porsche-web.com Porsche356.com porsche4me.com porsche4sale.com Porsche911.com Porsche911.net Porsche911.org porsche911parts.com Porsche914.com Porsche924.com Porsche944.com Porsche993.com Porsche996.com porscheag.com porscheaudiparts.com porschebooks.com porscheboxter.com porschecarrera.com porschecars.com porschecarsales.com porschecarsforsale.com porschecasino.com porschechat.com porscheclassified.com porscheclub.org porscheconnection.com porschedealer.com porschedealer.net porschedealers.com porschedealers.net porschedirect.com p[orschedirect.net] porschedoctor.com porschefans.com porschefleet.com porscheformula.com porschefx.com porschegt.com porschehaus.com porschelynn.com porschemail.com porschenow.com porschenut.com porscheonline.com porscheowner.com porscheowners.com porscheownersclub.com porscheparts.com porscheparts.net porschephiles.org porscheproducts.com porscheracing.com porscherims.com porsches.com porschesales.com porschesalestoday.com porschescape.com porscheservice.com porschesplayhouse.com porschestore.net porschestore.com porschestuff.com porschesucks.com porschetoday.com porschetrader.com porscheweb.com porscheworld.com porschezentrum.com porschezentrum.net porsche.com pristineporsche.com porsche.com ultimateporsche.com usedporsche.com usedporsches.com winaporsche.com, Porsche Cars North America, Incorporated Dr. Ing. H.C.F. Porsche Ag v. porsche.net porscheclub.net, and porsch.com, an Internet Domain Name and the Following Internet Domain Names: porschecar.com porschagirls.com 928porsche.com accessories4porsche.com allporsche.com beverlyhillsporsche.com boxster.com boxster.net boxters.com buyaporsche.com calporsche.com e-porsche.com everythingporsche.com formulaporsche.com ianporsche.com idoporsche.com laporsche.com lynchporsche.com myporsche.com newporsche.com parts4porsche.com po[zero]rsche.com passion-porsche.com porsche.org Porsche-911.com Porsche-911.net Porsche-944.com porsche-accessories.com porsche-autos.com porsche-books.com porsche-carrera.com porsche-cars.com porsche-city.com porsche-classic.com porsche-exchange.com porsche-leasing.com porsche-lynn.com porsche-modellclub.com porsche-munich.com porsche-net.com porsche-ni.com porsche-online.com porsche-rs.com porsche-sales.com porsche-service.com porsche-supercup.com porsche-web.com Porsche356.com porsche4me.com porsche4sale.com Porsche911.com Porsche911.net Porsche911.org porsche911parts.com Porsche914.com Porsche924.com Porsche944.com Porsche993.com Porsche996.com porscheag.com porscheaudiparts.com porschebooks.com porscheboxter.com porschecarrera.com porschecars.com porschecarsales.com porschecarsforsale.com porschecasino.com porschechat.com porscheclassified.com porscheclub.org porcheconnection.com porschedealer.com porschedealer.net porschedealers.com porschedealers.net porschedirect.com porschedirect.net porschedoctor.com porschefans.com porschefleet.com porscheformula.com porschefx.com porschegt.com porschehaus.com porschelease.com porscheloan.com porscheloans.com porschelynn.com porschemail.com porschenow.com porschenut.com porscheonline.com porscheowner.com porscheowners.com porscheownersclub.com porscheparts.com porscheparts.net porschephiles.org porscheproducts.com porscheracing.com porscherims.com porsches.com porschesales.com porschesalestoday.com porschescape.com porscheservice.com porschesplayhouse.com porschestore.com porschestore.net porschestuff.com porschesucks.com porschetoday.com porschetrader.com porscheweb.com porscheworld.com porschezentrum.com porschezentrum.net porsche.com pristineporsche.com porsche.com ultimateporsche.com usedporsche.com porschestore.com usedporches.com winaporsche.com
PORSCHE CARS NORTH AMERICA, INCORPORATED; Dr. Ing. H.C.F. Porsche AG, Plaintiffs-Appellants,
v.
PORSCHE.NET; Porscheclub.Net; Porscheloans.Com; Porschelease.Com; Porscheloan.Com, Defendants-Appellees, and
Porsch.Com, an internet domain name and the following internet domain names: Porschecar.Com; Porschagirls.Com; 928 Porsche.Com; Accessories4porsche.Com; Allporsche.Com; Beverlyhillsporsche.Com; Boxster.Com; Boxster.Net; Boxsters.Com; Buyaporsche.Com; Calporsche.Com; E-Porsche.Com; Everythingporsche.Com; Formulaporsche.Com; Iansporsche.Com; Idoporsche.Com; Laporsche.Com; Lynchporsche.Com; Myporsche.Com; Newporsche.Com; Parts4porsche.Com; Po[Zero]Rsche.Com; Passion-Porsche.Com; Porsche.Org; Porsche-911.Com; Porsche-911.Net; Porsche-944.Cоm; Porsche-Accessories.Com; Porsche-Autos.Com; Porsche-Books.Com; Porsche-Carrera.Com; Porsche-Cars.Com; Porsche-City.Com; Porsche-Classic.Com; Porsche-Exchange.Com; Porsche-Leasing.Com; Porsche-Lynn.Com; Porsche-Modellclub.Com; Porsche-Munich.Com; Porsche-Net.Com; Porsche-NI.Com; Porsche-Online.Com; Porsche-Rs.Com; Porsche-Sales.Com; Porsche-Service.Com; Porsche-Supercup.Com; Porsche-Web.Com; Porsche356.Com; Porsche4me.Com; Porsche4sale.Com; Porsche911.Com; Porsche911.Net; Porsche911.Org; Porsche911parts.Com; Porsche914.Com; Porsche924.Com; Porsche944.Com; Porsche993.Com; Porsche996.Com; Porscheag.Com; Porscheaudiparts.Com; Porschebooks.Com; Porscheboxter.Com; Porschecarrera.Com; Porschеcars.Com; Porschecarsales.Com; Porschecarsforsale.Com; Porschecasino.Com; Porschechat.Com; Porscheclassified.Com; Porscheclub.Org; Porscheconnection.Com; Porschedealer.Com; Porschedealer.Net; Porschedealers.Com; Porschedealers.Net; Porschedirect.Com; P[Orschedirect.Net]; Porschedoctor.Com; Porschefans.Com; Porschefleet.Com; Porscheformula.Com; Porschefx.Com; Porschegt.Com; Porschehaus.Com; Porschelynn.Com; Porschemail.Com; Porschenow.Com; Porschenut.Com; Porscheonline.Com; Porscheowner.Com; Porscheowners.Com; Porscheownersclub.Com; Porscheparts.Com; Porscheparts.Net; Porschephiles.Org; Porscheproducts.Com; Porscheracing.Com; Porscherims.Com; Porsches.Com; Porschesales.Com; Porschesalestoday.Com; Porschescape.Com; Porscheservice.Com; Porschesplayhouse.Com; Porschestore.Net; Porschestore.Com; Porschestuff.Com;
Porschesucks.Com; Porschetoday.Com; Porschetrader.Com; Porscheweb.Com; Porscheworld.Com; Porschezentrum.Com; Porschezentrum.Net; Porsche.Com; Pristineporsche.Com; Porsche.Com; Ultimateporsche.Com; Usedporsche.Com; Usedporsches.Com; Winaporsche.Com, Defendants.
Porsche Cars North America, Incorporated; Dr. Ing. H.C.F. Porsche AG, Plaintiffs-Appellees,
v.
Porsche.Net; Porscheclub.Net, Defendants-Appellants, and
Porsch.Com, an internet domain name and the following internet domain names: Porschecar.Com; Porschagirls.Com; 928Porsche.Com; Accessoriеs4porsche.Com; Allporsche.Com; Beverlyhillsporsche.Com; Boxster.Com; Boxster.Net; Boxters.Com; Buyaporsche.Com; Calporsche.Com; E-Porsche.Com; Everythingporsche.Com; Formulaporsche.Com; Ianporsche.Com; Idoporsche.Com; Laporsche.Com; Lynchporsche.Com; Myporsche.Com; Newporsche.Com; Parts4porsche.Com; Po[Zero]Rsche.Com; Passion-Porsche.Com; Porsche.Org; Porsche-911.Com; Porsche-911.Net; Porsche-944.Com; Porsche-Accessories.Com; Porsche-Autos.Com; Porsche-Books.Com; Porsche-Carrera.Com; Porsche-Cars.Com; Porsche-City.Com; Porsche-Classic.Com; Porsche-Exchange.Com; Porsche-Leasing.Com; Porsche-Lynn.Com; Porsche-Modellclub.Com; Porsche-Munich.Com; Porsche-Net.Com; Porschе-NI.Com; Porsche-Online.Com; Porsche-Rs.Com; Porsche-Sales.Com; Porsche-Service.Com; Porsche-Supercup.Com; Porsche-Web.Com; Porsche356.Com; Porsche4me.Com; Porsche4sale.Com; Porsche911.Com; Porsche911.Net; Porsche911.Org; Porsche911parts.Com; Porsche914.Com; Porsche924.Com; Porsche944.Com; Porsche993.Com; Porsche996.Com; Porscheag.Com; Porscheaudiparts.Com; Porschebooks.Com; Porscheboxter.Com; Porschecarrera.Com; Porschecars.Com; Porschecarsales.Com; Porschecarsforsale.Com; Porschecasino.Com; Porschechat.Com; Porscheclassified.Com; Porscheclub.Org; Porcheconnection.Com; Porschedealer.Com; Porschedealer.Net; Porschedealers.Com; Porschedealers.Net; Porschedirect.Com; Porschedirect.Net; Porschedoctor.Com; Porschefans.Com; Porschefleet.Com; Porscheformula.Com; Porschefx.Com; Porschegt.Com; Porschehaus.Com; Porschelease.Com; Porscheloan.Com; Porscheloans.Com; Porschelynn.Com; Porschemail.Com; Porschenow.Com; Porschenut.Com; Porscheonline.Com; Porscheowner.Com; Porscheowners.Com; Porscheownersclub.Com; Porscheparts.Com; Porscheparts.Net; Porschephiles.Org; Porscheproducts.Com; Porscheracing.Com; Porscherims.Com; Porsches.Com; Porschesales.Com; Porschesalestoday.Com; Porschescape.Com; Porscheservice.Com; Porschesplayhouse.Com; Porschestore.Com; Porschestore.Net; Porschestuff.Com; Porschesucks.Com; Porschetoday.Com; Porschetrader.Com; Porscheweb.Com; Porscheworld.Com; Porschezentrum.Com; Porschezentrum.Net; Porsche.Com; Pristineporsche.Com; Porsche.Com; Ultimateporsche.Com; Usedporsche.Com; Porschestore.Com; Usedporches.Com; Winaporsche.Com, Defendants.
No. 01-2028.
No. 01-2073.
United States Court of Appeals, Fourth Circuit.
Argued June 5, 2002.
Decided August 23, 2002.
ARGUED: Thomas Rex Lee, Howard, Phillips & Andersen, P.C., Salt Lake City, Utah, for Plaintiffs-Appellants. Darren James Quinn, Law Offices of Darren J. Quinn, San Diego, California, for Defendants-Appellees. ON BRIEF: Gregory D. Phillips, Howard, Phillips & Andersen, P.C., Salt Lake City, Utah; John F. Anderson, Richards, McGettigan, Reilly & West, Alexandria, Virginia, for Plaintiffs-Appellants. Paul M. Decicco, Law Offices of Paul Michael Decicco, San Diego, California, for Defendants-Appellees.
Before WILKINSON, Chief Judge, MOTZ, Circuit Judge, and BOBBY R. BALDOCK, Senior Circuit Judgе of the United States Court of Appeals for the Tenth Circuit, sitting by designation.
Affirmed in part, dismissed in part, and vacated and remanded in part by published opinion. Judge MOTZ wrote the opinion, in which Chief Judge WILKINSON and Senior Judge BALDOCK joined.
OPINION
DIANA GRIBBON MOTZ, Circuit Judge.
Porsche Cars North America, Incorporated and Dr. Ing. h.c.F. Porsche AG, a German company, brought this in rem action against certain Internet domain names related to the name "Porsche" or another Porsche trademark, seeking an injunction that would transfer the right to use the domain names. The Porsche companies contend that some of the domain names violated their rights under the Anticybersquatting Consumer Protection Act,
I.
The Internet is an "international computer network of both Federal and non-Federal interoperable packet switched data networks": a network of computers all around the world through which people communicate information to each other.
Federal law defines a domain name as "any alphanumeric designation which is registered with or assigned by any domain name registrar, domain name registry, or other domain name registration authority as part of an electronic address on the Internet."
A person seeking the right to use a particular domain name may register with one of a number of registrar organizations that assign domain names on a first-come first-served basis. See id. at 493. Many consumers look for a given company's Web site by checking to see if the company uses a domain name made up of the company's name or brand name with the suffix ".com." A person might, for example, look for information about Baltimore's major-league baseball team by typing "www.baltimoreorioles.com". For this reason, "companies strongly prefer that their domain name be comprised of the company or brand trademark and the suffix.com." Id.; see also Brookfield Communications, Inc. v. West Coast Entm't Corp.,
On January 6, 1999, the two Porsche companies (collectively "Porsche") filed a trademark-dilution action under
Few of the domain names offered any defense. The district court entered default judgments against many of them, and Porsche voluntarily dismissed its claims against many others. Five domain names did remain in the action. Christian Holmgreen, a British citizen, had registered two of them: porsche.net and porscheclub.net (collectively "the British domain names"). Alan J. Martin, a resident of the state of Georgia who did business under a trade name, had registered three others: porschelease.com, porscheloan.com, and porscheloans.com (collectively "the Georgia domain names").
On motion by the British domain names, the district court dismissed the complaint in its entirety on the ground that
While Porsche's appeal from the dismissal order was pending in this court, Congress enacted the Anticybersquatting Consumer Protection Act (ACPA or "the anticybersquatting statute"), authorizing in rem actions against domain names in certain circumstances. Pub.L. No. 106-113, 113 Stat. 1501, 1501A-545 (1999), codified in relevant part at
On August 11, 2000, Porsche amended its complaint, adding anticybersquatting claims under
The in rem anticybersquatting claims against the British domain names have a more complex procedural history. On December 29, 2000, the court ruled that the amended complaint did not allege sufficient facts to dеmonstrate that Porsche had exercised due diligence in seeking to obtain in personam jurisdiction over Holmgreen, and so dismissed the in rem anticybersquatting claims against the British domain names. However, this dismissal was without prejudice, permitting Porsche to file a second amended complaint to plead specifically the efforts it had made to obtain personal jurisdiction over Holmgreen. Porsche then did file a second amended complaint, which the British domain names again moved to dismiss, asserting that Porsche still had not alleged facts sufficient to demonstrate a diligent search for Holmgreen's contacts with the United States.
On February 23, 2001, after oral argument, the district court denied the motion to dismiss the second amended complaint, finding that Pоrsche had exercised due diligence and had satisfactorily demonstrated a lack of personal jurisdiction over Holmgreen within the United States. The court explained that given "[t]he reality of [Porsche's] counsel's research efforts and the fact that all parties involved have known for almost two years that Holmgreen has no contacts with the United States," it was "satisfied that due diligence has been exerted and that personal jurisdiction is lacking through[out] the United States." The court explicitly "found that in rem jurisdiction [under the ACPA] is proper."
On July 13, 2001, three days prior to the scheduled trial date, the British domain names notified the district court that Holmgreen had decided to submit to personal jurisdiction in the United States District Court for the Southern District of California. The British domain names then moved to dismiss the in rem anticybersquatting claims against them, arguing that the decision by Holmgreen divested the district court of in rem jurisdiction under the ACPA. See
Although the district court expressed frustration with Holmgreen's eleventh-hour decision to submit to personal jurisdiction in federal court in California, it ruled that this decision did divest it of in rem jurisdiction. For this reason, the district court dismissed Porsche's anticybersquatting claims against the British domain names. The court characterized its dismissal as "without prejudice," but ruled that as long as in personam jurisdiction over Holmgreen was available in federal court in California, Porsche could not proceed in rem against the domain names in this action.
Porsche appeals from the order dismissing, without prejudice, its anticybersquatting claims against the British domain names and from the order dismissing, with prejudice, its trademark-dilution claims against the British and the Georgia domain names.1 We address first the anticybersquatting claims and then the trademark-dilution claims. We note that we have jurisdiction over the anticybersquatting claims, despite the district court's characterization of its dismissal of them as "without prejudice," because "the grounds for dismissal clearly indicate that `no amendment [in the complaint] could cure the defects in the plaintiff's case.'" Domino Sugar Corp. v. Sugar Workers Local 392,
II.
The anticybersquatting statute authorizes in rem jurisdiction over a domain name if personal jurisdiction over the registrant of the domain name is unavailable. In relevant part, the ACPA provides:
The owner of a mark may file an in rem civil action against a domain name in the judicial district in which the domain name registrar, domain name registry, or other domain name authority that registered or assigned the domain name is located if
(i) the domain name violates any right of the owner of a mark registered in the Patent and Trademark Office ...; and
(ii) the court finds that the owner —
(I) is not able to obtain in personam jurisdiction over a person who would have been a civil defendant [in a suit].
On February 23, 2001, the district court found that it had jurisdiction over the British domain names under the ACPA.2 See
A.
The British domain names contend, as the district court agreed, that "once there is in personam jurisdiction, you can no longer proceed in rem" — no matter when the in personam jurisdiction arises.
We recognize at the outset that the structure of the ACPA undoubtedly expresses Congress's preference for in personam suits: the holder of a trademark must convince the court that in personam jurisdiction over a person is unavailable before an ACPA in rem action may proceed. See
1.
Because none of the relatively few ACPA cases to date offer any kind of support for the British domain names' position, they rely exclusively on non-ACPA cases.
Specifically, the domain names look to non-ACPA cases that state the unremarkable proposition that subject-matter jurisdiction cannot be waived. See, e.g., Lovern v. Edwards,
Even if we accepted that the parties' inability to waive subject-matter jurisdiction should inform our analysis of in rem jurisdiction, we can find no support for the separate proposition that the conditions that create subject-matter jurisdiction must necessarily persist throughout the life of a case. For example, it is blаck-letter law that the conditions that create diversity jurisdiction, one well-known basis for subject-matter jurisdiction, need not survive through the life of the litigation. Rather, a court determines the existence of diversity jurisdiction "at the time the action is filed," regardless of later changes in originally crucial facts such as the parties' citizenship or the amount in controversy. Freeport-McMoRan, Inc. v. K N Energy, Inc.,
Similarly, although federal courts lack subject-matter jurisdiction over a case involving only state-law claims in the absence of diversity jurisdiction, a court may retain supplemental jurisdiction over purely state-law claims after resolving a claim that initially gave it subject-matter jurisdiction over the case. See
In any event, personal jurisdiction, rather than subject-matter jurisdiction, seems far more analogous to in rem jurisdiction. See United States v. 51 Pieces of Real Property,
Furthermore, in case law considering objections to in rem jurisdiction other than the one presented in our case, we have found no support for the British domain names' contention. Rather, in admiralty and civil forfeiture cases, for years courts have held that objections to in rem jurisdiction may be waived. Republic Marine,
Considering another non-ACPA condition of in rem jurisdiction in the forfeiture context, moreover, the Supreme Court has rejected an argument similar to that of the British domain names. Although at the beginning of a civil forfeiture case the res must be located in the jurisdiction that asserts authority over it, the Court has held that a federal court's appellate jurisdiction over the in rem case survives even if the res is removed from the jurisdiction. See Republic Nat'l Bank of Miami v. United States,
True, the Republic National Bank Court was considering a challenge to in rem jurisdiction by the party that had initiated the action, distinguishing our case in part — but the Court also emphasized that the party challenging jurisdiction had itself chosen to move the res, see id. at 82-83, 88-89,
In sum, the case law appears to be void of support for the British domain names' position, and the Supreme Court's statements in Republic National Bank seriously undermine their theory as a general proposition.
2.
Nor does the anticybersquatting statute suggest any reason to treаt ACPA in rem jurisdiction differently. The statute permits "the owner of a mark" to "file" an in rem action against a domain name if "the court finds that the owner ... is not able to obtain in personam jurisdiction over a person who would have been a civil defendant" in an action concerning that domain name.
Of course, as the British domain names point out, the ACPA requires such a finding whether or not a defendant formally opposes the court's assertion of in rem jurisdiction. But this requirement does not somehow permit a defendant to oppose in rem jurisdiction whenever it pleases. Rather, the statutory requirement that the court make a specific finding reduces defendants' options by designating a finding that must be made, and thus a point at which the court will consider objections to the assertion of in rem jurisdiction.
In fact, as a matter of statutory language, the ACPA provides far less support to a requirement that jurisdictional conditions persist than does the text of the diversity statute. The diversity statute provides that "[t]he district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs," and "is between" certain categories of litigants.
By contrast, the anticybersquatting statute permits "the owner of a mark" to "file" an in rem action if "the court finds that the owner is not able to obtain in personam jurisdiction over a person who would have been a civil defendant."
Furthermore, the policy interests that lead courts to continue to entertain cases even after the end of conditions that originally yielded diversity jurisdiction apply with equal force to the jurisdiction created under the anticybersquatting statute. See 13B Charles Alan Wright, Arthur R. Miller & Edward H. Cooper, § 3608 (discussing policy). To see this, we need only consider that under the British domain names' theory, Holmgreen could have delayed even longer before submitting to personal jurisdiction; perhaps he might even have chosen to wait to see how the trial went, and then submitted to personal jurisdiction to stave off the expected entry of an adverse judgment. Nothing in the ACPA or its legislative history suggests that Congress intended to permit such manipulation. See
B.
Having thus rejected the argument that the ACPA's jurisdictional conditions must persist throughout the life of an in rem case, we have no difficulty in concluding that the British domain names objected much too late to in rem jurisdiction on the grounds of personal jurisdiction over their registrant, Holmgreen. They first challenged the court's in rem jurisdiction, contending that the ACPA violates the Constitution, in September 2000, and lost. The British domain names did not argue that the court lacked in rem jurisdiction because of the existence of in personam jurisdiction over their registrant until July 2001, only three days before the scheduled in rem trial, five months after the court's finding that in rem jurisdiction was proper, and a full nine months after their initial jurisdictional challenge.
At oral argument, the only explanation the British domain names could proffer for the July motion's untimeliness was "outrage" at Porsche's settlement tactics. A sense of "outrage" may explain Holmgreen's decision to submit to an in personam action in California, but it hardly provides a satisfactory legal basis for ignoring the lengthy delay. Moreover, this very suggestion — that a person with an interest in a case could properly yank it aсross the country a few days before trial merely to express his outrage, thus increasing the opponent's costs and imposing additional expense on the federal courts as a whole — well illustrates why the existence of jurisdiction should not be subject to manipulation in the later stages of litigation.
Because the British domain names delayed so long and entirely without excuse in challenging in rem jurisdiction on the ground that personal jurisdiction existed, we need not address subtleties presented by the anticybersquatting law, such as what showing, if any, could justify reconsideration of an early finding that anticybersquatting in rem jurisdiction existed under
C.
Alternatively, the British domain names contend that a number of the in rem provisions of the ACPA violate the Due Process Clause. These arguments totally lack merit.
Some of the British domain names' constitutional arguments involve ACPA provisions not even at issue here. For example, they complain of a due process problem with
The British domain names' principal constitutional challenge to the ACPA provisions at issue here centers on the "contacts" necessary for in rem jurisdiction. They argue that the Due Process Clause requires that to bring an ACPA in rem action in the Eastern District of Virginia, Porsche must prove that Holmgreen personally has minimum contacts with that jurisdiction. The British domain names contend that the minimum-contacts test of International Shoe Company v. Washington,
As the district court succinctly put it, in "an in rem proceeding in which the property itself is the source of the underlying controversy between plaintiff and defendant, ... due process is satisfied" by assigning jurisdiction based on the location of the property. See Rush v. Savchuk,
The British domain names seek to escape the consequences of this rule by asserting, apparently as a matter of common law, that domain names are not property — only an address. But see Panavision Int'l v. Toeppen,
We thus hold that the British domain names' challenges to the constitutionality of the ACPA are as meritless as its contentions that it could not, and did not, waive its objections to in rem jurisdiction under the ACPA.
III.
Porsche argues that without reference to the ACPA, the district court had jurisdiction under
A trademark-dilution action under
Nor will we stretch the trademark-dilution statute to afford Porsche the remedy it seeks. Because of the importance of domain names and the possibility of using them to do substantial damage to valuable trademarks, it might have been tempting, before the enactment of the ACPA, to try to provide such a remedy to holders of marks in cases involving domain names held by foreign registrants. Cf. Washington Speakers Bureau, Inc. v. Leading Authorities, Inc.,
To ensure a remedy in anticybersquatting cases, however, Congress chose not to amend
As the Second Circuit recently remarked, the ACPA "was adopted specifically to provide courts with a preferable alternative to stretching federal dilution law when dealing with cybersquatting cases." Sporty's Farm,
IV.
In sum, Porsche may not seek possession of any offending domain name through a trademark-dilution claim under
AFFIRMED IN PART, DISMISSED IN PART, AND VACATED AND REMANDED IN PART.
Notes:
Notes
The British domain names cross-appeal from the district court's orders denying their motions for attorney's fees and Rule 11 sanctions. Our resolution of the appeal moots these claims; accordingly, we dismiss the cross-appeal
Our ACPA analysis involves only the claims of the British domain names, because Porschе has not appealed from the district court's order dismissing its ACPA claims against the Georgia domain names. We further note that the district court did not construe Porsche's pleadings to state either a trademark-dilution claim under
The British domain names also suggest that the ACPA's provisions for service of process in rem cases "may be" unconstitutional, without squarely arguing that they are. Brief of Appellees at 34. In fact, the British domain names responded to Porsche's suit in a timely way; plainly, therefore, actual notice existed in this case