Trade Libel

Warren Kremer Paino Advertising v. Dutson

Date: 

04/14/2006

Threat Type: 

Lawsuit

Party Issuing Legal Threat: 

Warren Kremer Paino Advertising LLC

Party Receiving Legal Threat: 

Lance Dutson

Type of Party: 

Organization

Type of Party: 

Individual

Court Type: 

Federal

Court Name: 

United States District Court for the District of Maine

Case Number: 

1:06CV00047

Legal Counsel: 

Gregory W. Herbert, Jon Stanely

Publication Medium: 

Blog

Relevant Documents: 

Status: 

Concluded

Disposition: 

Withdrawn

Description: 

Lance Dutson operates a blog, the "Maine Web Report." Beginning in February 2006, he published a series of posts that were critical of the Maine Department of Tourism and Warren Kremer Paino Advertising LLC ("Warren Kremer"), an advertising agency that had worked on a Maine tourism campaign. In these posts, Dutson allegedly made statements to the effect that (1) Warren Kremer was violating Maine law by using state funds to promote Maine tourism to people inside Maine; (2) Warren Kremer expended state tourism funds for the purpose of returning internet search results for non-tourism activity, such as pornography and pedophilia; (3) Warren Kremer was "pissing away" Maine tax money; and (4) Warren Kremer had hired a subcontractor who had a conflict of interest. Dutson also allegedly posted "copyrighted material" owned by Warren Kremer (the specific material was not identified in Warren Kremer's complaint).

In April 2006, Warren Kremer sued Dutson in federal court in Maine for defamation, copyright infringement, and trade libel. Warren Kremer voluntarily dismissed the suit after a month, after facing extensive criticism on blogs and websites.

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Subject Area: 

GTX Global Corp. v. Left

Date: 

11/21/2005

Threat Type: 

Lawsuit

Party Issuing Legal Threat: 

GTX Global Corp.

Party Receiving Legal Threat: 

Andrew Left

Type of Party: 

Organization

Type of Party: 

Individual

Court Type: 

State

Court Name: 

California Superior Court, Los Angeles County

Case Number: 

B192626 (on appeal); BC343334 (trial court)

Legal Counsel: 

Peter Kravitz; Jon-Jamison Hill; Alonzo Wickers

Publication Medium: 

Blog

Relevant Documents: 

Status: 

Concluded

Disposition: 

Dismissed (total)

Description: 

Andrew Left published a website called StockLemon, on which he blogged about stocks that he considered "lemons." He made comments on his blog that were critical of GTX Global Corp, and GTX sued, claiming that he made defamatory statements about it in order to artificially depress the price of GTX stock so that he could short sell it for a profit. The complaint included claims for trade libel, intentional interference with prospective economic advantage, securities fraud under California law, securities fraud under federal law, and conspiracy.

Left successfully moved to strike the complaint based on California's anti-SLAPP statute (Cal. Code Civ. Proc. § 425.16). In May 2007, the California Court of Appeals affirmed, holding that Left's criticism of GTX on his website was an exercise of free speech, and that GTX failed to meet the heightened evidentiary showing required by the anti-SLAPP statute. It also held that Left was entitled to attorney's fees, including for the appeal.

Jurisdiction: 

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CMLP Notes: 

SB Reviewed; to-do: get court documents

A&P v. D'Avella

Date: 

08/24/2007

Threat Type: 

Lawsuit

Party Issuing Legal Threat: 

Great Atlantic & Pacific Tea Company, Inc.

Party Receiving Legal Threat: 

Mark A. D'Avella; Matthew D'Avella

Type of Party: 

Organization

Type of Party: 

Individual

Court Type: 

State

Court Name: 

Superior Court of New Jersey Law Division, Hunterdon County

Case Number: 

L-515-07

Legal Counsel: 

Patrick Farmer - McElroy, Deutsch, Mulvaney & Carpenter

Publication Medium: 

Blog

Relevant Documents: 

Status: 

Concluded

Disposition: 

Settled (total)

Description: 

Two brothers from New Jersey, Mark and Matthew D'Avella, spent the summer working for the A&P supermarket in Califon, New Jersey. They made the best of what could have been a boring situation by creating parodic rap songs with supermarket themes under the name "Fresh Beets" (here's their myspace page). Their songs including gems like "Always Low Prices" and (their masterpiece) "Produce Paradise," which is a nod to Coolio's 1995 "Gangsta's Paradise," which in turn drew on Stevie Wonder's venerable "Pastime Paradise." Mark and Matthew made a video of "Produce Paradise" in the A&P store (after hours) and posted it to YouTube and their website, fakelaugh.com, along with some blog commentary.

A&P's parent company, The Great Atlantic and Pacific Tea Company, Inc., filed a lawsuit against the brothers in New Jersey Superior Court seeking $1 million in damages. The complaint, filed August 24, 2007, included counts for defamation, business and product disparagement, and federal trademark infringement and dilution. It alleged that "Produce Paradise" depicted the brothers "performing their rap song in various recognizable areas of the Califon A&P, including the fresh produce department, the corner bakery, the stock room and the employee bathroom," and that "at least one defendant is wearing a hat with a recognizable A&P logo [during the video]."

The complaint cited the brothers' "disparaging and disgusting lyrics pertaining to produce and groceries, and the store in general" and their "doing various disparaging and disgusting things to produce and groceries, and [sic] in and around the produce and grocery areas." None of the statements identified in the complaint, however, mention A&P. To support its claim that the video has injured its reputation, A&P alleged that "at least one customer," having recognized the store and Mark and Matthew as employees, complained to A&P about the video, stating that she was "disgusted and distressed by the scenes depicted in the video," and that she "would not be shopping in [A&P's] stores in the future owing to the repulsive acts depicted and performed by defendants in the Rap Video."

A&P also raised a trademark infringement and dilution claim, alleging (remarkably) that Mark and Matthew are "using the A&P logo in commerce, in connection with the promotion of their Rap Video" and that this use of its mark "is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection or association of defendants with A&P, such that a viewer of the Rap Video would surmise that A&P condoned, or sponsored or approved the use of the A&P Logo and/or the Califon A&P premises in the Rap Video." Somewhat (but only marginally) more realistically, the complaint claims that the defendants' use of the A&P logo dilutes the value of the mark.

Update: In May 2008, the Courier News reported that the parties had settled. The precise terms of the settlement are confidential, but it looks like the brothers have removed the video from the Internet.

Jurisdiction: 

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Subject Area: 

CMLP Notes: 

TO DO: monitor status

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