Playboy Enterprises, Inc. v. Netscape Communications Corporation
United States Court of Appeals for the Ninth Circuit
354 F.3d 1020 (2004)
Netscape (defendant) operated a search engine that used 'keying' to link advertisers' ads to specific search terms, including trademarked terms belonging to Playboy Enterprises (plaintiff), such as 'playboy' and 'playmate,' causing adult-oriented, often graphic and confusingly labeled ads to appear whenever users searched those terms. Playboy sued for trademark infringement and dilution, and Netscape argued its use of the terms was a permissible nominative fair use; the trial court granted summary judgment for Netscape, and Playboy appealed.
Whether linking advertisements to searches for specific trademarked terms can create a likelihood of confusion sufficient to infringe on those trademarks.