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Internet Trademark Case Summaries

Magnet Communications, L.L.C. v. Magnetcommunications, Inc.

2001 U.S. Dist. LEXIS 14460 (S.D. Fla. Sept. 19, 2001)

Plaintiff, a public-relations firm, first used the mark MAGNET COMMUNICATIONS on June 20, 2000, and also registered the domain name “magnetcommunications.com.”  Defendant, a software company and application service provider for web-based banking services, first used the same mark in 1995.  Defendant sent plaintiff a cease-and-desist letter on July 24, 2000, and plaintiff filed this action on August 2, 2000, seeking a declaration of noninfringement and for an injunction preventing defendant from interfering with its mark and domain name.  Defendant counterclaimed, asserting claims of trademark infringement, dilution, and cybersquatting under the ACPA.  Defendant moved for a preliminary injunction on September 11, 2000, against plaintiff’s use of the MAGNET COMMUNICATIONS mark and “magnetcommunications.com” domain name.  The court denied defendant’s motion because defendant failed to establish irreparable harm.  Any presumption of irreparable harm was rendered inoperative by defendant’s delay in bringing suit or moving for a preliminary injunction.  Although defendant learned of plaintiff’s use of the mark in late June 2000, it did not seek a preliminary injunction for twelve weeks.