Century

21 REAL ESTATE CORPORATION V. LENDINGTREE, INC. 425 F.3d 211 (3rd Cir. 2005)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Each of the Ps are real estate companies that oversee a system of franchisees. Their franchise agreements permit those brokerage companies to provide realty services under trademarks. Every franchisee is granted a license to use its franchisor's trademark only in connection with its 'd/b/a' name. D helps consumers identify and select qualified lenders, real estate brokers, auto insurers, and other financial service companies. If consumers ultimately use a D referred broker, they receive rewards, such as airline frequent flier miles and gift cards. D also has an established mortgage referral program based on contractual relationships with participating financial institutions identified on its website. D used Ps' marks to help its broker referral service to function. P wrote to D to demand that it stop Ps' 'marks' on its website in any manner in the operation of its business. D stopped using the logos on its webpage but continued to use them in block letter form on other webpages. Ps commenced this action and applied for a preliminary injunction. The District Court determined that D's use was likely to cause consumer confusion and that the nominative use defense did not shield D in this instance. The court issued an injunction for Ps and D appealed.