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E. & J. Gallo Winery v. Spider Webs Ltd.

If a court finds a violation of the Anti-Cybersquatting Consumer Protection Act, it may order the transfer of the domain name to the owner of the mark and may award statutory damages.

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Appeal from the United States District Court for the Southern District of Texas

The Ernest and Julio Gallo Winery (“Gallo”) holds a trademark in the name “Ernest & Julio Gallo.” Spider Webs Ltd. registered the internet domain name “ernestandjuliogallo.com” (the “domain name”). Gallo sent Spider Webs a letter requesting that they release or transfer the domain name to Gallo, but Spider Webs refused to do so. Gallo sued Spider Webs under the Anti-Cybersquatting Consumer Protection Act (“ACPA”), and under federal and Texas anti-dilution, trademark infringement, and unfair competition laws. After this litigation began, Spider Webs hosted a web site at the domain name that was critical of this litigation, of alcohol, and of corporate America. The parties consented to proceed before a magistrate judge, who granted summary judgment to Gallo on the ACPA and Texas Anti-Dilution Statute (“ADS”) claims, issued an injunction under the ADS, ordered the transfer of the domain name to Gallo under the ACPA, and awarded statutory damages to Gallo under the ACPA. Spider Webs appeals. We AFFIRM.

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