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

Employment Law Observer
Aug 10, 2026
As Leaves Fall, Leave Requests Rise: Are You Compliant With Chicago’s Expanded Rules?

Press Release
Aug 7, 2026
Daniel McGrath Re-Elected Senior Director of the Federation of Defense & Corporate Counsel

Insights for Insurers Alert
Aug 7, 2026
California Supreme Court Clarifies Pleading Standards for Excess Policy Claims

Press Release
Aug 6, 2026
Charles Townsend Named a Best Mentor Finalist in the 2026 ALM Texas Legal Awards

Webinar
Aug 5, 2026
April Toy Moderates HNBA Webinar on AI in the Practice of Law

Privacy, Cyber & AI Decoded Alert
Aug 5, 2026
2026 AI Compliance: Upcoming Laws Every Organization Needs to Know

Press Release
July 21, 2026 | Updated on August 4, 2026
Three Hinshaw Attorneys Named to the 2026 National Black Lawyers’ Top 40 Under 40 List

Healthcare Alert
Aug 3, 2026
Fixing the Emergency Refill Trap: What California’s AB 1587 Means for Pharmacies

Consumer Crossroads: Where Financial Services and Litigation Intersect
Jul 30, 2026
Should Text Messages be Considered “Calls” Under the TCPA? The Seventh Circuit Says No

Healthcare Alert
Jul 30, 2026
California Courts Sharply Curtail the MICRA Damages Cap in Nursing Home Litigation

Insights for Insurers Alert
Jul 30, 2026
Analyzing a Couple of Cases Involving Exclusions in D&O Policies


