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April 2005

Court: It's OK to disparage hair company in cyberspace


Apr. 04, 2005
Associated Press

A San Diego man can disparage a hair-restoration company on the Internet, and do it on a Web site under the company's name without violating copyright law, a federal appeals court ruled Monday.



The case concerns Michael Kremer, who had his head treated at the Bosley Medical Institute in Seattle and was not happy with the outcome.

As the 9th U.S. Circuit Court of Appeals put it, Kremer initiated "a bald-faced effort to get even" with the company that is based in Delaware and provides services nationwide.

Kremer created a Web site in 2000 at www.bosleymedical.com, using the trademarked name of the hair company.

Bosley sued, claiming trademark infringement.

The appeals court, mirroring rulings by at least two other circuit courts of appeal, said the so-called "gripe site" was not infringing on a copyright because the Web site was not created to make a profit or to confuse Bosley's customers and potential clients. There were no links on the site to other hair-restoration providers, the court noted.

"We hold today that the noncommercial use of a trademark as the domain name of a Web site - the subject of which is consumer commentary about the products and services represented by the mark - does not constitute infringement," Judge Barry Silverman wrote for the unanimous three-judge panel.

Kremer's attorney, Paul Levy, said the decision "is an important victor for free speech on the Internet. It makes clear that consumers can use a trade name for a company they want to criticize."

The appeals court, however, reinstated part of the lawsuit in which Bosley alleges that Kremer is violating a so-called cybersquatting law by allegedly attempting to sell the site to Bosley in exchange for removing the disparaging material.

Bosley's attorneys did not return phone calls.