There’s been a new spin to a notable trademark dispute involving Lamborghini, a renowned luxury car manufacturer. The issue originated in 2021 when Lamborghini established a new dealership in Nashville, Tennessee. As part of their branding efforts, they sought to create a website for the dealership, but encountered a hurdle: the domain name “lamborghininashville.com” had been in the possession of John Pasas since 2011.
John Pasas owns Velocity Motorcars of Murfreesboro Pike, a high-end car dealership in the region. Although Pasas occasionally sells Lamborghinis, his dealership is not officially affiliated with the brand. In response to Lamborghini’s cease and desist letter in August 2021, Pasas expressed his reluctance to relinquish the domain and inquired about potential solutions.
While Pasas’ stance may appear reasonable, it did not find favour in court. In 2022, the United Nations’ World Intellectual Property Organisation (WIPO) ruled that Pasas was using the domain in bad faith and that his response indicated an intention to negotiate and sell the domain. Consequently, WIPO ordered Velocity Motorcars to transfer the domain to Lamborghini.
However, the story takes an interesting turn as the dealership acquires a new domain, “lamborghiniofnashville.net,” which now redirects to its website. Lamborghini has once again taken legal action, alleging that this new web address is likely to cause confusion with their legitimate online presence and that Velocity Motorcars is both profiting from their name and damaging their reputation.
The automaker has initiated a lawsuit against Velocity Motorcars, seeking $100,000 in damages. They have accused the dealership of trademark infringement, trademark dilution, and cybersquatting, the illegal practice of registering well-known brand names as internet domains with the intent to profit from their resale. Cybersquatting has been a federal crime since 1999.
This ongoing legal battle underscores the critical importance of trademark protection and the challenges companies face when protecting their brand identity in the digital realm. It also serves as a reminder of the legal consequences that can arise when individuals or businesses attempt to exploit well-known trademarks for their own gain.
