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

Event
Apr 23, 2026
Driving Ahead: Insights from Industry Leaders Auto Finance Seminar

Consumer Crossroads: Where Financial Services and Litigation Intersect
Mar 13, 2026
DOJ Settlement with Car Retailer Highlights SCRA Repossession Risks

Privacy, Cyber & AI Decoded Alert
Mar 11, 2026
Compliance Considerations for GDPR Consent in Biotech Clinical Research

Press Release
Mar 4, 2026
Marcia Mueller Named the 2026 Mentorship Award Winner by YWCA Northwestern Illinois

Press Release
Mar 3, 2026
Hinshaw Announces New Administrative Leadership Appointments

In The News
Feb 27, 2026
Hinshaw Partners Examine Implications for Nursing Homes of New Illinois Aid-in-Dying Law

In The News
Feb 24, 2026
Lucy Wang Authors Law360 “Expert Analysis” on Why Attorney Civility Means More in 2026

Press Release
Feb 13, 2026
Hinshaw Team Wins Appeal in Criminal Indictment of Waukegan City Clerk Janet Kilkelly

Press Release
Feb 10, 2026
Hinshaw Trial Team Secures $0 Defense Verdict in $15 Million Auto Accident Trial

Press Release
Feb 5, 2026
Hinshaw Legal Team Secures Directed Verdict in Florida Equine Fraud Case

Press Release
Feb 4, 2026
Hinshaw Celebrates 17 Consecutive Years of Being Named an Equality 100 Award Winner

![[Video] New Regulatory Priorities Under Mayor Mamdani’s NYC Department of Consumer and Worker Protection](/a/web/oHiTWa7kRy3Ht1brq6k4BT/bkMx39/new-york-city-skyline.jpg)
