2024 Supreme(US)(ca2) 38
COURT OF APPEALS FOR THE SECOND CIRCUIT
1-800 Contacts Inc. – Appellant
Versus
JAND Inc. DBA Warby Parker – Respondent
In the United States Court of Appeals for the Second Circuit ___________________________
August Term 2022 No. 22-1634
1-800 CONTACTS, INC.,
Plaintiff-Appellant,
v.
JAND, INC., DBA WARBY PARKER,
Defendant-Appellee.
___________________________
On Appeal from the United States District Court for the Southern District of New York ___________________________
(Argued June 9, 2023; Decided October 8, 2024) Before: CHIN, CARNEY, and LEE, Circuit Judges.
Plaintiff-Appellant 1-800 Contacts, Inc., appeals from a judgment entered in the United States District Court for the Southern District of New York (Castel, J.), granting a motion for judgment on the pleadings in favor of Defendant-Appellee JAND, Inc., d.b.a. Warby Parker. The Complaint alleges that Defendant-Appellee used Plaintiff-Appellant’s trademarks—its brand name 1-800-Contacts and related variations—in keyword search advertisements in violation of the federal Lanham Act, 15 U.S.C. §§ 1114, 1125(a), and New York State common law. Defendant- Appellee allegedly engaged in a plan to purchase search engine keywords consisting of Plaintiff-Appellant’s trademarks for use as keywords in online advertising campaigns and then designed misleading paid advertisements, so that customers searching for Plaintiff-Appellant’s website by typing “1-800-Contacts” into a web browser would be diverted to Defendant-Appellee’s website instead. However, Plaintiff-Appellant does not claim that Defendant-Appellee actually used the former’s trademarks other than purchasing them as keywords in the online search engine auctions.
We now reiterate that the mere act of purchasing a search engine keyword
that is a competitor’s trademark does not alone, in the context of keyword search
advertising, constitute trademark infringement. Upon examination of the
remaining allegedly infringing components of Defendant-Appellee’s search
advertising campaign—i.e., the resulting advertisement itself and landing
webpage linked within, neither of which displays 1-800-Contact’s trademarks—
we conclude that Plaintiff-Appellant failed to plausibly allege any likelihood of
consumer confusion under this Circuit’s test in Polaroid Corp. v. Polarad Electronics
Corp.,
STEPHEN R. FISHBEIN, Shearman & Sterling LLP, New York, NY (Todd M. Stenerson, Brian C. Hauser, Shearman & Sterling LLP, Washington, DC; Ryan A. Shores, Cleary Gottlieb Steen & Hamilton LLP, Washington, DC; Steven J. Joffee, Ethan J. Bercot, Michael Best & Friedrich LLP, Cottonwood Heights, UT; Thomas A. Agnello, Michael Best & Friedrich LLP, Milwaukee, WI, on the brief) for Plaintiff-Appellant.
G. ROXANNE ELINGS (L. Danielle Toaltoan, on the brief), Davis Wright Tremaine LLP, New York, NY, for Defendant-Appellee. ___________________________ EUNICE C. LEE, Circuit Ju