Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_13-cv-00139/USCOURTS-azd-2_13-cv-00139-0/pdf.json

Nature of Suit Code: 840
Nature of Suit: Trademark
Cause of Action: 15:1125 Trademark Infringement (Lanham Act)

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 The plaintiff was formerly known as the General Motors Acceptance

Corporation and ALLY BANK.

WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Ally Financial, Inc.,

 Plaintiff,

vs.

Donald Jones,

 Defendant.

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No. CV-13-00139-PHX-PGR 

 ORDER

 

 

Having considered plaintiff Ally Financial, Inc.’s Application for Entry of Default

Judgment (Doc. 14), filed pursuant to Fed.R.Civ.P. 55(b)(2), the Court finds that the

application should be granted.

The plaintiff1

, which offers and markets online banking products and services

and automotive financing services, commenced this action against defendant Donald

Jones on January 22, 2013. The plaintiff’s complaint alleges that the defendant

willfully violated the Anticybersquatting Consumer Protection Act (“ACPA”), 15

U.S.C. §1125(d), by registering several domain names unlawfully incorporating

federally registered trademarks belonging to the plaintiff. According to the plaintiff’s

Case 2:13-cv-00139-PGR Document 17 Filed 07/23/13 Page 1 of 6
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proof of service (Doc. 11), the defendant was personally served on January 25,

2013. As a result of the defendant’s failure to respond in any manner to the

complaint or to otherwise defend against the plaintiff’s action, the plaintiff filed an

Application for Entry of Default (Doc. 12) on February 22, 2013. The Clerk of the

Court properly entered default (Doc. 13) against the defendant on February 25,

2013.

The ACPA establishes civil liability for cyberprivacy where the plaintiff

establishes (1) that the defendant registered, trafficked in, or used a domain name,

(2) the domain name is identical or confusingly similar to a protected mark owned

by the plaintiff, and (3) the defendant acted with bad faith intent to profit from that

mark. DSPT International, Inc. v. Nahum, 624 F.3d 1213, 1218-19 (9th Cir. 2010); 15

U.S.C. § 1125(d)(1). 

The Court concludes that the well-pleaded factual allegations in the complaint

regarding liability, which the Court takes as being true as a result of the defendant’s

default, Geddes v. United Financial Group, 559 F.2d 557, 560 (9th Cir.1977), are

sufficient to demonstrate that the plaintiff has established all of the required ACPA

elements and that the defendant is therefore liable for cybersquatting. First, the

complaint alleges that the defendant has registered several domain names, including

ALLYBANKLOANS.com, allybancshares.com, and allynationalbank.com. Second,

the complaint alleges that the plaintiff’s federally registered trademarks include

ALLY, ALLY BANK, and ALLY AUTO and that the plaintiff has secured and

registered hundreds of domain names incorporating its Ally trademarks, including

ally.com, allybank.com. and allyauto.com, and that the defendant’s infringing domain

names are confusingly similar to the plaintiff’s. Third, the complaint alleges that the

defendant registered his domain names with the bad faith intent to profit from them.

Case 2:13-cv-00139-PGR Document 17 Filed 07/23/13 Page 2 of 6
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The relevant allegations include that the defendant has not made any legitimate use

of his infringing domain names, that he knowingly used his confusingly similar

websites to redirect the plaintiff’s potential customers to his own website named

veterannationalbank.us, that he has refused to transfer his infringing domain names

to the plaintiff, that after the plaintiff informed him of his violations of the ACPA he

sought to strike a deal with the plaintiff whereby he would surrender his infringing

domain names only in exchange for the plaintiff’s agreement to partner with him in

a new banking/loan venture, and that when the plaintiff rejected that proposal, he

rigged his infringing websites to redirect the plaintiff’s potential customers to

websites of the plaintiff’s competitor Chase Bank. These allegations, viewed in light

of the factors set forth in 15 U.S.C. § 1125(d)(1)(B)(i)(I-IX), are sufficient to show a

bad faith intent on the defendant’s part.

The relief the plaintiff seeks in its application includes a request that Court

order the defendant to transfer the ownership of his infringing domain names to the

plaintiff, and the entry of an injunction against the defendant’s further misuse of the

plaintiff’s Ally-related marks, all of which is part of the relief sought by the plaintiff in

its complaint. In light of the defendant’s willful violation of the ACPA, the Court

concludes that the plaintiff is entitled to its requested relief. See 15 U.S.C. § 1125

(d)(1)(C) (“In any civil action involving the registration, trafficking, or use of a domain

name under this paragraph, a court may order the forfeiture or cancellation of the

domain name or the transfer to the domain name to the owner of the mark.”) The

Court will therefore order the defendant to transfer to the plaintiff all of his Allyrelated domain names identical or confusingly similar to the plaintiff’s protected

marks, and the Court will permanently enjoin the defendant from using any Allyrelated mark alone or in conjunction with any other term that serves as a source

Case 2:13-cv-00139-PGR Document 17 Filed 07/23/13 Page 3 of 6
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identifier.

The plaintiff further seeks an award of its reasonable attorneys’ fees pursuant

to 15 U.S.C. § 1117(a) (“The court in exceptional cases may award reasonable

attorney fees to the prevailing party.”) A case involving a violation of the ACPA is

considered to be “exceptional” for purposes of § 1117(a) if the defendant is shown

to have acted “maliciously, fraudulently, deliberately, or willfully.” Earthquake Sound

Corp. v. Bumper Industries, 352 F.3d 1210, 1216 (9th Cir.2003). The Court

concludes that the plaintiff is entitled to an award of fees pursuant to § 1117(a)

because it has sufficiently established that the defendant’s wrongful conduct, as

noted above, was at least deliberate or willful. Therefore, 

IT IS ORDERED that plaintiff Ally Financial, Inc.’s Application for Entry of

Default Judgment (Doc. 14) is granted.

IT IS FURTHER ORDERED that plaintiff Ally Financial, Inc. is awarded its

reasonable attorneys’ fees pursuant to 15 U.S.C. § 1117(a), contingent on the

plaintiff filing a fee application no later than August 26, 2013.

IT IS FURTHER ORDERED that plaintiff Ally Financial, Inc. is awarded its

taxable costs to date in the amount of $447.20 pursuant to Fed.R.Civ.P. 54(d)(1),

and is additionally awarded its cost incurred in personally serving the Court’s Order

and the Court’s Judgment on defendant Donald Jones.

IT IS FURTHER ORDERED that defendant Donald Jones shall transfer to

plaintiff Ally Financial, Inc. the registration and ownership rights to any domain name

that uses the term “Ally,” including, but not limited to, the following domain names:

ALLYBANKLOANS.com, allybancshares.com, and allynationalbank.com. Such

transfers shall take place no later than fourteen (14) calendar days from the date the

defendant is served with a copy of the Court’s Order and the Court’s Judgment.

Case 2:13-cv-00139-PGR Document 17 Filed 07/23/13 Page 4 of 6
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IT IS FURTHER ORDERED that defendant Donald Jones shall file with the

Court and serve on plaintiff Ally Financial, Inc.’s counsel a list of all domain names

for which he has ownership rights no later than thirty (30) days from the date he is

served with a copy of the Court’s Order and the Court’s Judgment. Thereafter, the

plaintiff shall have thirty (30) days to request that the Court’s Judgment be amended

to provide for the transfer of the defendant’s ownership rights with respect to any

listed domain name that is confusingly similar to a mark in which the plaintiff has a

protected interest.

IT IS FURTHER ORDERED that defendant Donald Jones, as well as his

officers, agents, servants, employees, successors, assigns, parents, subsidiaries,

affiliated or related companies, attorneys and all persons in active concert and/or

participation with him who receive notice of the Court’s Order and/or the Court’s

Judgment in this action, are permanently enjoined and restrained from:

1. Registering, trafficking, using, or maintaining the registration of any domain

name that uses the term “Ally”; 

2. Using the mark or name ALLY, or any confusingly similar mark, name,

domain name or colorable imitation thereof, in connection with defendant Donald

Jones’s activities or business which may in any way mislead or confuse anyone as

to the source, affiliation or sponsorship of such business or website or domain;

3. Causing a likelihood of confusion or misunderstanding as to source,

sponsorship, association, affiliation, approval or certification with or by plaintiff Ally

Financial, Inc., or engaging in conduct tending to create a false commercial

impression of the plaintiff’s products or services or any other conduct which tends

to pass off defendant Donald Jones’ products or services as those of the plaintiff or

creates a likelihood of confusion or misunderstanding or false impression.

Case 2:13-cv-00139-PGR Document 17 Filed 07/23/13 Page 5 of 6
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IT IS FURTHER ORDERED that defendant Donald Jones shall file with the

Court and serve on plaintiff Ally Financial, Inc.’s counsel within thirty (30) days after

being served with the Court’s Order and the Court’s Judgment, a report in writing,

under oath, setting forth in detail the manner and form in which he has complied with

the terms of the Court’s injunction.

IT IS FURTHER ORDERED that in the event that defendant Donald Jones

fails to comply with the material terms of the Court’s Order and the Court’s

Judgment, plaintiff Ally Financial, Inc. shall be entitled to recover any reasonable

attorneys’ fees and costs incurred in securing the defendant’s compliance.

IT IS FURTHER ORDERED that plaintiff Ally Financial, Inc. shall personally

serve a copy of the Court’s Order and the Court’s Judgment on defendant Donald

Jones and shall file a notice of such service with the Court.

IT IS FURTHER ORDERED that the Clerk of the Court shall enter judgment

in favor of plaintiff Ally Financial Bank, Inc. accordingly.

DATED this 23rd day of July, 2013.

Case 2:13-cv-00139-PGR Document 17 Filed 07/23/13 Page 6 of 6