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Horseshoe Bay Resort Sales Co. v. Lake Lyndon B. Johnson Improvement Corporation

The district court didn't err in finding that registration of the domain name "horseshoebay.com" infringed a protectable mark owned by the appellee.

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This is a dispute over an internet domain address and alleged trademark infringement and dilution. The parties to this suit provide real estate services in Llano County, Texas. Since 1971, appellee Lake Lyndon B. Johnson Improvement Corporation (“Lake LBJ Corp.”) has done business as “Horseshoe Bay.” In 1996, appellant Horseshoe Bay Resort Sales Company (“Resort Sales Co.”) registered the domain name “horseshoebay.com” and began using this Internet address for its website. Lake LBJ Corp. consequently brought suit for common law infringement and dilution under the Texas Anti-Dilution Statute. See Tex. Bus. & Com. Code Ann. � 16.29 (West Supp. 2001). The district court issued a declaratory judgment that “Horseshoe Bay” is a valid trademark belonging to Lake LBJ Corp. and that Resort Sales Co.’s use of the mark constitutes dilution. The court also granted a permanent injunction, assigning the domain name “horseshoebay.com” to Lake LBJ Corp., and awarded Lake LBJ Corp. attorney’s fees. Resort Sales Co. challenges the district court’s findings (1) that “Horseshoe Bay” is a protectable mark, (2) that Resort Sales Co.’s use of the domain name dilutes the mark, (3) that the claims are not barred by the statute of limitations, (4) that declaratory relief was appropriate, and (5) that Lake LBJ Corp. is entitled to attorney’s fees. We will affirm the district court’s judgment.

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