Appeals court affirms District Court’s decision to grant summary judgment to XYZ in false advertising case.Verisign (NASDAQ:VRSN) has lost its appeal in its false advertising lawsuit against .XYZ and its founder, Daniel Negari.
Verisign, which runs the .com and .net namespaces, alleged in a lawsuit that Negari made false claims about registrations of .XYZ and that he caused harm by disparaging the availability of .com domain names.
The district court granted summary judgment in XYZ’s favor, holding that Verisign could not establish the elements of a Lanham Act claim. The appeals court affirmed the district court’s decision in an opinion (pdf) published today.
Claims about Success of .XYZ
The court determined that Verisign failed to produce the required evidence that it suffered actual injury as a direct result of XYZ’s self-promotion about .XYZ.
The crux of Verisign’s argument was that .XYZ actually gave away 375,000 .xyz domain names but included these in its registration numbers to show how successful it was. These 375,000 domains were part of a deal with Web.com in which Web.com gave a $3 million dollar advertising credit to XYZ and XYZ gave Web.com $3 million dollars’ worth of .xyz domain names. Web.com gave these domains to its customers. Click here to continue reading…