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Porsche to Appeal Ruling in In Rem Internet Domain Name Case

10 June 1999

Porsche to Appeal Ruling in In Rem Internet Domain Name Case

    ATLANTA, June 10 -- On June 8, 1999, the United States
District Court for the Eastern District of Virginia dismissed Porsche's novel
and groundbreaking in rem lawsuit against approximately 138 Internet domain
names.
    The Court ruled Porsche may not proceed in rem (Latin for "against the
thing") against the domain names, but must proceed in personam (Latin for
"against the person") against the registrants of the domain names.  In
essence, it ruled Porsche could sue the persons or entities individually who
registered the Internet domain names, but cannot sue just the domain names.
Porsche will appeal this ruling.
    "We are obviously disappointed the Court dismissed the in rem lawsuit,"
said Patricia R. Britton, General Counsel for Porsche Cars North America, Inc.
"As many web site operators use fictitious names and addresses in registering
the pirated domain names or register the domain names through offshore
corporations, it is impossible for famous trademark holders to find and sue
each of the registrants individually.  An in rem lawsuit is the only feasible
way Porsche can put and end to the cyberabuse and cyberpiracy it faces on the
Internet."
    The law governing the Internet is still developing.  Porsche believes any
significant legal decisions will have to be made by the appellate courts.
Accordingly, Porsche will ask the Fourth Circuit Court of Appeals to reinstate
the in rem lawsuit.
    "Even though the Court dismissed the lawsuit," added Britton, "it
recognized the difficult 'dilemma' famous trademark holders face in dealing
with cyberabuse on the Internet.  The Court further stated that the 'mere act
of registration...creates an immediate injury by preventing Porsche from
utilizing those domain names itself in order to channel consumers to its own
web site.'"
    As a result of filing the lawsuit, approximately 50 of the 138 domain
names listed in the action have already agreed to cancel their registrations.