Smith v. Wal-Mart Stores, Inc.

537 F. Supp. 2d 1302 (2008)

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Smith v. Wal-Mart Stores, Inc.

United States District Court for the Northern District of Georgia
537 F. Supp. 2d 1302 (2008)

  • Written by Sharon Feldman, JD

Facts

Wal-Mart Stores, Inc. (Wal-Mart) (defendant) sold goods and services through stores and www.wal-mart.com. Wal-Mart had registered rights in the WAL-MART trademark and service mark and often used a yellow smiley face with its registered marks. Charles Smith (plaintiff), who believed Wal-Mart was detrimental to the nation’s communities, created designs and slogans using the word “Walocaust” formed from Wal-Mart and holocaust. One design depicted a bird gripping a yellow smiley face, modeled after the Nazi eagle gripping a swastika. Smith’s designs were printed on promotional items sold on www.CafePress.com. Smith registered the domain name www.walocaust.com. Wal-Mart demanded that Smith cease selling products with anti-Wal-Mart designs and transfer the domain name to Wal-Mart. Smith sued for a judgment declaring his right to sell the merchandise, added a disclaimer to www.walocaust.com that it was unaffiliated with Wal-Mart, and registered the domain name www.wal-qaeda.com as commentary on Wal-Mart’s “terrorist” attack on his free speech. Wal-Mart counterclaimed for, among other claims, trademark infringement and dilution by tarnishment. Smith and Wal-Mart moved for summary judgment. Wal-Mart submitted a marketing manager’s affidavit stating that the smiley face had been used with Wal-Mart’s registered marks for years, Wal-Mart had invested substantial resources in developing it, and it had become synonymous with Wal-Mart.

Rule of Law

Issue

Holding and Reasoning (Batten, J.)

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Casebooks

Human Rights

Key Terms

  • Declaratory JudgmentA judgment issued by a court in which it determines the legal rights of the parties or expresses an opinion on the law but does not award a remedy. Also known as declaratory relief.
  • TrademarkA symbolic representation of a company or product.
  • First AmendmentGuarantees that the government will not abridge freedoms of the press, religion, and speech; the right to peacefully assemble; and the right to petition the government to remedy grievances.
  • Trademark DilutionThe decreased ability of a famous mark to identify and distinguish goods or services.
  • ParodyA work that imitates another work with the intention to criticize, comment on, or make fun of the other work.
  • Trademark InfringementUnauthorized use of subject matter similar enough to trademarked subject matter likely to cause confusion in the mind of an ordinary consumer as to the source of a product.
  • Service MarkA trademark that is used to identify services rather than goods.
  • Free Speech ClauseA clause of the First Amendment to the United States Constitution that provides that Congress shall not make laws abridging the freedom of speech.

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