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Acquisition of Domain Name Without Goodwill Does Not Establish Prior Rights

by Mark VB Partridge on Sat 23 Oct 2004 02:55 PM EST | Permanent Link

The prohibition against the assignment of trademarks without goodwill is alive and well in this recent decision by the Judge St. Eve of the Nothern District of Illinois. Pure Imagination Inc. v. Pure Imagination Studios Inc., Civil Action No. -03 0 6070 (N.D.Ill. Sept. 30, 2004).

Students of trademark law will appreciate the continued application of that classroom favorite, Pepsico, Inc. v. Grapette Co., 416 F.2d 285 (8th Cir. 1968).

The Pure Imagination case stands for these key points:

1. Mere registration of a domain name creates no rights or goodwill (although use of a domain name as a trade or service mark can create common law rights).

2. An assignment without goodwill does not convey any trademark rights to the purchaser.

3. Therefore, the purchaser of a domain name without goodwill cannot claim the date of registration as its first use of a mark (the purchaser only holds the domain name registration, which is merely contract with the registrar).

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