Legal Environment of Business 8th Edition by Henry Cheeseman

Exercise 1

Cybersquatting Ernest Julio Gallo Winery (Gallo) is a famous maker of wines that is located in California. The company registered the trademark "Ernest Julio Gallo" in 1964 with the U. S. Patent and Trademark Office. The company has spent over $500 million promoting its brand name and has sold more than four billion bottles of wine. Its name has taken on a secondary meaning as a famous trademark name. Steve, Pierce, and Fred Thumann created Spider Webs Ltd., a limited partnership, to register Internet domain names. Spider Webs registered more than two thousand Internet domain names, including http://ernestandjuliogallo.com. Spider Webs is in the business of selling domain names. Gallo filed suit against Spider Webs Ltd. and the Thumanns, alleging violation of the federal Anticybersquatting Consumer Protection Act (ACPA). The U.S. District Court held in favor of Gallo and ordered Spider Webs to transfer the domain name http://ernestandjuliogallo.com to Gallo. Spider Webs Ltd. appealed. Who wins? E. J. Gallo Winery v. Spider Webs Ltd., 286 F.3d 270, Web 2002 U.S. App. Lexis 5928 (United States Court of Appeals for the Fifth Circuit)