Exceptional Cybersquatting

In Spectrum Association Management of Texas v. Lifetime HOA Management LLC, the Fifth Circuit identified an “exceptional case” that justified an award of attorneys’ fees under the Anti-Cybersquatting Consumer Protection Act.  The Court contrasted Kiva Kitchen & Bath Inc. v. Capital Distributing, Inc., 319 F. App’x 316 (5th Cir. 2009), observing:

“Like the defendants in Kiva, the Lifetime Defendants acted in bad faith by registering and using an infringing internet domain with the intent to divert a direct competitor’s potential customers to Lifetime’s website. Further, the facts of this case are even more egregious than Kiva, because the Lifetime Defendants never offered to transfer the Infringing Domain to Spectrum, whereas the Kiva defendants made such an offer to the plaintiff shortly before trial. Finally, the Lifetime Defendants engaged in post-trial misconduct by blatantly copying text from Spectrum’s website—evidence of willfulness and bad faith that was not present in Kiva.”

No. 20-50604 (July 13, 2021).