GoDaddy’s Ad Parking Not Registration and Not Entitled to Safe Harbor Protection

GoDaddy provides domain name registration and also has its “Parked Pages Program” – intending to monetize domain names – consisting of its “Free Parking Program” and the “Cash Parking Program.” The Parked Pages Program is distinct from GoDaddy’s domain registration programs, and GoDaddy can register domain names without when rolling them in the Parked Pages Program. Registrants registering domain names in the Parked Pages Program grant GoDaddy the right to point their domain names to GoDaddy’s websites or servers, and to place on the webpages that resolve from registered domain names advertisements that generate revenue for GoDaddy whenever an Internet user visits the website and clicks on an advertisement. In the Cash Parking Program, registrants pay GoDaddy a fee to allow GoDaddy, thorough its advertising partner, to place ads on the webpage associated with a domain name. The revenue form this program is split among the registrant, GoDaddy and the advertising partner.

The Academy of Motion Picture Arts and Sciences sued GoDaddy for cybersquatting under Anticybersquatting Consumer Protection Act (“ACPA”) for applying its Parked Pages Program to over 100 domain names that the Academy contended were confusingly similar to its famous and distinctive trademarks OSCAR® and ACADEMY AWARDS®. While the District Court deferred ruling on whether the accused domain names were in the Parked Pages Program or were confusingly similar to the Academy’s trademarks, it did rule on GoDaddy’s assertion that it was protected from liability under the “safe harbor” provisions of ACPA that immunizes registrars from damages claims for the registration or maintenance of a domain name for another absent a showing of bad faith intent to profit. The court held that the Parked Pages Program was distinct from GoDaddy’s registrar function as the program applied to pages already registered with GoDaddy. Moreover, contrary to GoDaddy’s assertions that it was merely routing domain names, the Court found that GoDaddy creates and hosts websites to which the accused names resolve and places revenue generating advertisements thereon. The Court also found GoDaddy both used and trafficked in domain names under the program since it amounted to a license to allow the placement of the ads and received revenue therefrom.

Academy of Motion Pictures Arts and Sciences v. GoDaddy.com Inc.
U.S. District Court, Central District of California
June 2013