“The Zippo court distinction between interactive, semiinteractive, and passive websites is also particularly relevant.” —Gauvey, Magistrate Judge 

Facts: Chanel, Inc., is a corporate entity duly organized under the laws of the state of New York, with its principal place of business in New York City. Chanel is engaged in the business of manufacturing and distributing throughout the world various luxury goods, including handbags, wallets, and numerous other products under the federally registered trademark “Chanel” and monogram marks. Chanel filed a lawsuit in the U.S. district court in Maryland against defendant Ladawn Banks, a resident of Florida. Chanel alleged that Banks owned and operated the fully interactive website www.lovenamebrands. com, through which she sold handbags and wallets bearing counterfeit trademarks identical to the registered Chanel marks. The goods at issue in this case were sold to a resident of Maryland. The court had to address the issue of whether it had personal jurisdiction over the defendant. 

Issue: Does the court have personal jurisdiction over the defendant? 

Language of the Court: According to Chanel, although defendant Banks is a resident of Florida, she conducted business in Maryland via several interactive websites. The Zippo court distinction between interactive, semi-interactive, and passive websites is particularly relevant. Defendant’s website at issue in this case was highly interactive and provided a platform for the commercial exchange of information, goods, and funds. Thus, this Court has personal jurisdiction over defendant in this matter. 

Decision: The U.S. district court for Maryland held that defendant Banks was subject to personal jurisdiction of the court. The court granted default judgment to Chanel, assessed damages of $133,712 against Banks, and issued a permanent injunction prohibiting Banks from infringing on Chanel’s trademarks. Ethics Questions Do you think Banks acted unethically in this case? Has the Internet created special problems for trademark and copyright holders?