David Levitt Author's Article, "IP: Developments in Evaluation of Nominative Fair Use in Domain Names," in InsideCounsel
In The News | 1 min read
Mar 8, 2011
Recent decision in Toyota Motor Sales, U.S.A, Inc. v. Tabari addresses the issue of trademark infringement and domain names.
A retailer or broker sells a trademarked product. The seller obtains a domain name that includes the trademark. Does the trademark owner have a valid claim for trademark infringement? The recent decision in Toyota Motor Sales, U.S.A., Inc. v. Tabari, sheds some further light on this issue. But the court's analysis adds to the growing body of case law that seems to assume consumer behavior without evidence.
The Tabaris are auto brokers. They contact authorized dealers, solicit bids and arrange for customers to buy from the dealer offering the best combination of location, availability and price. The Tabaris offered this service on the Internet at buy-a-lexus.com and buyorleaselexus.com. Because "Lexus" appeared in the domain name, Toyota sued for trademark infringement. The district court entered a permanent injunction barring the Tabaris from using any domain name which included the Lexus mark, but the 9th Circuit reversed and remanded.
The reversal was based on "nominative fair use," a doctrine that applies where the alleged infringer is using the trademark to describe the trademark owner's product, not its own. The court noted that the usual multifactor likelihood of confusion test (different federal circuits have articulated slightly different factors) does not apply in nominative fair use cases; rather, the court asks whether: (1) the product was "readily identifiable" without the use of the mark; (2) the defendant used more of the mark than was necessary; and (3) the defendant falsely suggested that it was sponsored or endorsed by the trademark holder.
Featured Insights

Webinar
May 19, 2026
Scott Seaman Speaks on Making Decisions in Difficult Risk Environments

Event
May 7, 2026 - May 9, 2026
Anshuman Vaidya Presents on IRS Criminal Tax Enforcement Priorities at the ABA Tax Meeting

Webinar
Apr 29, 2026
When a Cyber Breach Hits: Cybersecurity, Privacy, and Compliance

In The News
Apr 24, 2026
Michael Dowell Reviews New PBM Reform Reshaping Pharmacy Reimbursement

Lawyers for the Profession® Alert
Apr 21, 2026
When Does a Client’s Duty to Investigate Begin? Lessons from a Time-Barred Malpractice Case

Press Release
Apr 20, 2026
Tom Kuzmanovic Selected for BizTimes Milwaukee 2026 Notable Leaders in Law

Press Release
Apr 17, 2026
André Sesler Elected to the Board of Trustees of the University of Florida Law Center Association

Hinshaw Alert
Apr 17, 2026
Q&A: How to Submit Your IEEPA Refund Claim as CAPE Portal Launches April 20, 2026





