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re ^
CORROSION TECHNOLOGY CL IT
INTERNATIONAL, LLC, A
101 Convention Center Dr., Suite 850
Las Vegas, NV 89016,
Plaintiff,
ANTICORROSIVESINDUSTRIALES
LTDA.,
Avenida La Divisa 01011
San Bernardo, Santiago, Chile,
MARCELLO MIGONE,
Burdeos 3168
Penalolen, Santiago, Chile, and
IN RE CTIANCOR.COM, an internet
domain name.
Defendants.
COMPLAINT
company organized and existing under the laws of the State of Nevada with an address at 101
Convention Center Drive, Suite 850, Las Vegas Nevada 89109, and with a mailing address of
("Ancor") is a Chilean limited liability company with a principal address at Avenida La Divisa
company with a principal address at Avenida Las Esteras Norte 2560, Quilicura, Santiago, Chile.
joint venture company formed by Ancor and Tecmin as joint venturers, and with a principal
5. Upon information and belief, Marcello Migone is an individual and a citizen and
resident of Chile, with an address at Burdeos 3168, Penalolen, Santiago, Chile. Upon
information and belief, Defendant Migone is an agent and employee of Ancor and/or
Ancortecmin.
manufacturing electrolytic refining cells and associated equipment ("Products") used in the
production of nonferrous metals, which they each sell in interstate and/or international commerce
to a global clientele.
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 3 of 19
web, including both Spanish- and English-language webpages, and thereby markets its Products
which it markets its Products in international and interstate commerce to a global clientele,
9. Pursuant to a Purchase and Sale Agreement dated December 9, 2003 (as amended
and restated on February 11, 2004) and approved by the United States Bankruptcy Court for the
Global Industrial Technologies, Inc. and docketed at No. 02-21626 (the "Bankruptcy
Proceeding"), CTI acquired certain entities and assets that had been operated by Global
Industrial Technologies, Inc. ("GTI" or "Debtor") as part of the "CTI Group" of companies,
including CTI Europe, N.V., CTI Pacific Pty. LTD and Corrosion IP Corp. (collectively, the
"CTI Entities").
10. Pursuant to a Master Agreement dated May 1, 1998, GTI, the debtor in the
Bankruptcy Proceeding, had operated the CTI Entities together with Ancor in a joint venture
11. During the joint venture, the CTI-Ancor joint venture had registered the domain
name "ctiancor.com" with Network Solutions, LLC, a limited liability company with a principal
12. As reflected in the WHOIS report attached hereto as Exhibit A. the domain name
registration identifies CTI-Ancor as the registrant, Network Solutions, LLC as the registrar and
13. In connection with this domain name registration, Network Solutions, LLC and
the CTI-Ancor joint venture entered into a Service Agreement containing, upon information and
belief, the terms set forth in the standard form Service Agreement, relevant portions of which are
acquire the CTI Entities and assets at the auction conducted by Debtor, at which Plaintiff CTI
was the successful bidder. As a result, Plaintiff CTI became the owner of the entities that were
15. After CTI's acquisition of the CTI Entities, the joint venture between the CTI
Entities and Ancor was terminated by April 13, 2004 Order of the Bankruptcy Court (the "April
13, 2004 Order") approving a Compromise and Settlement Agreement between Defendant Ancor
and CTI and the CTI Entities. A true and correct copy of the April 13, 2004 Order is attached
hereto as Exhibit C.
17. Plaintiff herein asserts causes of action arising under federal law, including the
Anticybersquatting Consumer Protection Act, 15 U.S.C. § 1125(d), and the Lanham Act, 15
U.S.C. § 1125(a), and this Court therefore has subject matter jurisdiction over these federal
18. This Court has supplemental jurisdiction over Plaintiffs causes of action arising
19. Moreover, this is an action between a citizen of Nevada and citizens or subjects of
Chile, the matter in controversy exceeds $75,000, and this Court therefore additionally and
20. The Service Agreement provides that CTI-Ancor and its agents, including each
person listed in its account as being associated with its account, agree to submit to subject matter
jurisdiction, personal jurisdiction, and venue in the United State District Court for the Eastern
District of Virginia for the adjudication of any disputes brought by a third party concerning or
21. As explained more fully below, Defendants have acted as apparent agents of CTI-
Ancor in connection with the cti.ancor.com domain name, and Defendant Migone is further
have consented to the Eastern District of Virginia as the venue of this action, and venue is
23. Moreover, this cause of action arises out of Defendants' actions and omissions
with regard to the ctiancor.com domain name registered in Virginia and the instructions given
and not given to the registrar, Network Solutions, LLC, a Virginia citizen, regarding that domain
name.
24. Accordingly, even had Defendants not consented to the assertion of personal
jurisdiction in Virginia, this cause of action arises from Defendants' contacts with Virginia such
that this Court's assertion of personal jurisdiction over Defendants comports with notions of fair
25. Given that a substantial portion of the events or omission giving rise to the claim
occurred in the Eastern District of Virginia, venue is additionally and alternatively proper under
28U.S.C. §1391.
26. In the alternative, even if this Court lacked personal jurisdiction over Defendants,
this Court may assert in rem jurisdiction and the Eastern District of Virginia is a proper venue
under 15 U.S.C. § 1125(d)(2) given that Network Solutions, the domain name registrar, is
27. As Defendants are, upon information and belief, located in Chile, service will be
sought pursuant to the Inter-American Convention on Letters Rogatory and Additional Protocol,
to which the United States and Chile are parties, in accordance with Rules 4(f)(l) and 4(h)(2) of
28. Under the April 13, 2004 Order, any intellectual property that was owned by the
CTI Group prior to the Master Agreement was to revert to the exclusive use of the CTI Group.
29. At all relevant times, including prior to the Master Agreement and at present, CTI
and/or the CTI Entities were and are the lawful holder and owner of the name, mark and
trademark "CTI."
30. Notwithstanding the court-ordered termination of the CTI-Ancor joint venture and
CTI's exclusive right to use the mark "CTI," the Corporate Defendants continued to hold
themselves out as "CTI-Ancor," using the CTI-Ancor logo and using the ctiancor.com domain
31. Accordingly, CTI and the CTI Entities brought a motion in the Bankruptcy Court
32. By Order filed February 4, 2005 (the "February 4, 2005 Order"), the Bankruptcy
Court granted CTFs Motion and further affirmed that Ancor and its affiliated entities were to
refrain from using any intellectual property that was owned by CTI or the CTI Entities prior to
the Master Agreement, which would include the CTI name, logo and mark.
33. The February 4, 2005 Order further provides that in the event of noncompliance,
the Order may be enforced by further proceedings in any appropriate court with jurisdiction over
the party against whom enforcement is sought. A true and correct copy of the February 2, 2005
34. Following service of the February 4, 2005 Order, a Settlement Contract supported
by consideration was executed between CTI and the CTI Entities and Ancor, Ancortecmin and
various Ancor affiliates on or about September 28, 2005 (the "Settlement Contract"). A true and
35. Under the Settlement Contract, the Corporate Defendants agreed to stop using the
CTI name, logo or mark, whether alone or with any other name, logo or mark, in its logo,
stationary, business cards, website, advertising, promotions, products, or in any other form and to
not use the CTI-ANCOR trade name for any commercial or non-commercial purpose.
36. The Settlement Agreement also required ANCOR to have the www.ctiancor.com
web address lead to a single page informing visitors of the termination of the termination of the
joint venture and allowing visitors to then go to CTI's and ANCOR's respective new websites.
37. The Settlement Agreement further provided that any future changes to the
webpage must be agreed between CTI and Ancor, or their successor companies.
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 8 of 19
38. Under the Settlement Agreement, Defendant Ancortecmin agreed that it would
guarantee the performance of Defendant Ancor of all its obligations under the Settlement
Agreement.
39. Defendants took no action to ensure compliance with the Settlement Contract
provision requiring that future changes to the website must be agreed to by both CTI and Ancor
and did not inform Network Solutions, LLC, the domain name registrar, of this requirement, nor
of the termination of the joint venture that had registered the domain name. To the contrary, the
domain registration misleadingly still lists CTI-Ancor (a non-existent entity) as the registrant and
40. Defendants did initially comply with their obligation to take actions necessary to
cause the www.citancor.com web address led to the website informing of the termination of the
41. Subsequently, however, there have been multiple times (including as of the filing
of this Complaint) when, as a result of the Defendants' actions, the domain name ctiancor.com
has been linked directly to the Ancortecmin home page with the result that anyone typing
42. Upon information and belief, on each of these occasions, Defendant Migone, who
is listed as the administrative contact for the ctiancor.com domain name, acting as an agent of the
Corporate Defendants and as the purported agent of the terminated CTI-Ancor joint venture,
instructed Network Solutions, LLC, the domain name registrar, to link the domain name to the
43. The distinctive "CTI" name, mark and trademark have been used by CTI and its
affiliates world-wide for more than two decades in their business of selling the Products in the
44. More than 80% of the Products currently in use in the world market have been
45. As a result of the extensive use by Plaintiff of the mark "CTI" and its association
with CTI's Products, CTI holds trademark rights to the name "CTI" in the markets where its
46. The CTI designation, name and associated logo including "CTI" have been
consistently used for decades in product brochures, photographs, data sheets, correspondence
47. The CTI mark is a recognized and respected name in the industry in which
48. CTI and its affiliates have engaged in extensive advertising and marketing efforts
with the goal of achieving name recognition for their businesses among the purchasing public for
49. Plaintiff offers it Products for sale around the world, including in Virginia.
50. CTI and its affiliates have developed excellent reputations for the quality of their
51. Defendants knew that "CTI" was Plaintiffs distinctive trademark and intellectual
property when they linked the domain names ctiancor.com to Defendant Ancortecmin's website.
52. Indeed, Defendants linked the domain name to Defendant Ancortecmin's website
with the intent of capitalizing on the reputation and goodwill their competitor, Plaintiff, and the
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 10 of 19
potential buyers who were attempting to get information about Plaintiffs Products and by
creating confusion about the source of the Products offered on the Ancortecmin website and
COUNT I
(Anticybersquatting Consumer Protection Act ("ACPA"),
15 U.S.C. § 1125(d)(l) (In Personam))
were fully set forth in this Count I and made a constituent part hereof.
54. Plaintiff is the owner of the distinctive and famous trademark "CTI."
55. The Defendants used the domain name ctiancor.com with a bad faith intent to
56. The domain name ctiancor.com is identical to, conflisingly similar to and dilutive
57. The Defendants' actions are in violation of the ACPA, 15 U.S.C. § 1125(d).
58. Upon information and belief, Plaintiff has suffered actual damages as a result of
59. Upon information and belief, Defendants have profited as a result of their
unlawful actions.
(a) that the Court enter an judgment declaring the Defendants' actions
10
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 11 of 19
(b) that the Court enter an Order canceling the domain name
(c) that the Court award Plaintiff three times the amount of Plaintiffs
statutory damages in an amount not less than $1,000 and not more than
(d) that the Court award the Plaintiff the costs of the action and
(e) that the Court award the Plaintiff prejudgment and postjudgment
interest;
(e) that the Court grant an injunction prohibiting the Defendants from
registering or using any domain name containing the word CTI or any
(f) that the Court grant the Plaintiff such additional relief as may be
COUNT II
(The Lanham Act, 15 U.S.C. § 1125(a))
were fully set forth in this Count II and made a constituent part hereof.
11
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 12 of 19
62. Defendants have used the domain name ctiancor.com in an unauthorized manner
in interstate commerce.
63. Defendants' use of the words "cti" and/or "ctiancor" in a domain name linked to
Defendant Ancortecmin's website is likely to cause confusion or mistake in the relevant market
with CTI and/or the CTI Entities, or to deceive in suggesting the origin, sponsorship, or approval
constitutes a false designation of origin, false or misleading description of fact and or false or
by the Plaintiff.
"initial interest confusion," in that consumers are likely to be lured to Defendant Ancortecmin's
68. Upon information and belief, Plaintiff has suffered actual damages as a result of
12
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 13 of 19
69. Upon information and belief, Defendants have profited as a result of their
unlawful actions.
(a) that the Court enter an judgment declaring the Defendants' actions
(b) that the Court award the Plaintiff three times the amount of its
(c) that the Court award Plaintiff the costs of the action and reasonable
attorney fees;
(d) that the Court award the Plaintiff prejudgment and postjudgment
interest;
(e) that the Court grant an injunction prohibiting the Defendants from
registering or using any domain name containing the word "cti" or any
(f) that the Court grant the Plaintiff such additional relief as may be
COUNT III
(Breach of Contract)
were fully set forth in this Count III and made a constituent part hereof.
13
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 14 of 19
consideration.
73. Under the Settlement Contract, Defendant Ancor was obligated, inter alia, to stop
using the CTI name, logo or mark, whether alone or with any other name, logo or mark, in its
website and advertising, to not use the CTI-ANCOR trade name for any commercial or non
commercial purpose, to take whatever actions were required to have the www.ctiancor.com web
address lead to a single page informing of the termination of the joint venture and allowing
visitors to link to both CTI and Ancor websites, and to not make any future changes to the
75. Defendants Ancor and Ancortecmin breached and continue to breach the
Settlement Contract by using the CTI name, logo or mark in a domain name linked to the website
Ancortecmin homepage rather than the contractually required page, and by making these
76. Upon information and belief, as a direct and proximate result of Defendants'
breaches, Plaintiff has suffered and continues to suffer actual, consequential, and incidental
(a) that the Court enter an judgment declaring that Defendants' actions
14
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 15 of 19
termination of the joint venture and allowing visitors to link to both CTI
and Ancor websites and that further changes to the webpage may only be
(d) that the Court award Plaintiff the costs of the action and reasonable
attorney fees;
(e) that the Court award the Plaintiff prejudgment and postjudgment
interest;
(0 that the Court grant the Plaintiff such additional relief as may be
COUNT IV
(Contempt of Court)
were fully set forth in this Count IV and made a constituent part hereof.
79. The Bankruptcy Court's April 13, 2004 and February 4, 2005 Orders are valid and
binding judicial decrees of which the Corporate Defendants, and, upon information and belief,
15
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 16 of 19
80. The April 13, 2004 and February 4, 2005 Orders were in favor of CTI and the CTI
Entities insofar as they clearly and expressly ordered that any intellectual property that was
owned by the CTI Group prior to the Master Agreement, which would include the name, mark
and trademark "CTI," was to revert to the exclusive use of the CTI Group and that Ancor and its
above, Defendants have engaged in a pattern of behavior and conduct that violates the Orders,
the Settlement Agreement, applicable law and the rights of CTI including conduct that is the
82. The Defendants have willfully, knowingly and repeatedly violated the Bankruptcy
Court's Orders by using the ctiancor.com domain name, which contains the CTI name, mark and
83. The Defendants' acts of repeatedly failing to abide by the Bankruptcy Court's
April 13, 2004 and February 4, 2005 Orders demonstrate a pattern of contemptuous conduct and
a profound disrespect of the court and its processes, which obstructs the administration ofjustice
84. As a result of the Defendant's violations of the April 13, 2004 and February 4,
2005 Orders, Plaintiff has suffered and continues to suffer actual damages.
85. The February 4, 2005 Order expressly provides that in the event of
noncompliance, the Order may be enforced by further proceedings in any appropriate court with
16
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 17 of 19
contempt of court;
(c) that the Court award Plaintiff the costs of the action and reasonable
attorney fees;
(d) that the Court award the Plaintiff prejudgment and postjudgment
interest; and
(e) that the Court grant the Plaintiff such additional relief as may be
COUNT V
(Anticybersquatting Consumer Protection Act ("ACPA"),
15 U.S.C. § 1125(d)(2) an Rem))
were fully set forth in this Count V and made a constituent part hereof.
89. The domain name ctiancor.com violates CTI's rights as the owner of the CTI
mark, including rights protected under subsections (a) and (c) of 15 U.S.C. § 1125.
90. The registrant of the domain name was CTI-Ancor, the joint venture between the
CTI Entities and Ancor that was terminated by April 13, 2004 Order of the Bankruptcy Court
17
Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 18 of 19
jurisdiction over it, and therefore it is appropriate and required that this Court exercise in rem
(a) that the Court enter an order for the forfeiture or cancellation of the
(b) that the Court grant the Plaintiff such additional relief as may be
Network Solutions, LLC, shall: (i) expeditiously deposit with the Court
regarding the disposition of the registration and use of the domain name
domain name during the pendency of this action, except upon order of the
Court.
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Case 1:10-cv-00915-AJT -TCB Document 1 Filed 08/16/10 Page 19 of 19
By:
Martin M. Zoltick (VSB NV30058)
mzol tick@,rfem .com fj
ROTHWELL, FIGG, ERNST & MANBECK, P.C.
1425 K St., N.W., Suite 800
Washington, DC 20005
Telephone: (202) 783-6040
Facsimile: (202)783-6031
OF COUNSEL:
19