GoTo.com, Inc. v. Walt Disney Co. - 202 F.3d 1199 (9th Cir. 2000)

Rule:

The grant of a preliminary injunction will be reversed only when the district court has based its decision on an erroneous legal standard or on clearly erroneous findings of fact.

Facts:

Plaintiff's Internet logo consisted of the words "GO" and "TO" in white, stacked vertically within a green circle, often against a square yellow background. Defendant's Internet logo resembled a traffic light: within the green circle, the word "GO" appeared in white; next to the traffic light, the word "Network" appeared in black. Plaintiff sued for violation of the Lanham Act seeking a preliminary injunction, which was granted. Defendant appealed and sought a stay, which was also granted pending expedited appeal. 

Issue:

Should the preliminary injunction granted by the district court be sustained?

Answer:

Yes.

Conclusion:

The court affirmed, reinstating the preliminary injunction, finding plaintiff demonstrated likelihood of success on its trademark infringement claim. Irreparable injury was therefore presumed. The district court correctly found remarkably similar marks displayed commercially on the Web were likely to cause consumer confusion.