Century

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

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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.

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