Register.com, Inc. v. Verio, Inc.

356 F.3d 393 (2d Cir. 2004)

 

RULE:

If an injury can be appropriately compensated by an award of monetary damages, then an adequate remedy at law exists, but, irreparable harm requiring injunctive relief may be found where damages are difficult to establish and measure. 

FACTS:

Plaintiff, a registrar of Internet domain names, provided free public access to registrant contact information but prohibited the use of such data for mass unsolicited solicitations. Plaintiff requested defendant, a company engaged in the business of selling a variety of web site design, development, and operation services, to cease using the contact information for email marketing and marketing by direct mail and telephone. Defendant refused to stop marketing by direct mail and telephone. Plaintiff sued defendant asserting, among other claims, breach of contract for violating plaintiff’s terms of use. Plaintiff moved for a temporary restraining order and a preliminary injunction. The district court granted the preliminary injunction. The order enjoined defendant from using plaintiff's mark in communications with prospective customers, accessing plaintiff's computers by use of software programs performing multiple automated, successive queries, and using contact information relating to recent registrants of Internet domain names obtained from plaintiff's computers for mass solicitation. Defendant appealed. The appellate court affirmed the district court’s judgment.

ISSUE:

Did the district court abuse its discretion in granting the motion for preliminary injunction?

ANSWER:

No.

CONCLUSION:

The district court acted within its discretion in concluding that plaintiff showed a likelihood of success on the merits of its contract claim. It found it impossible to estimate the precise amount of the monetary loss which had resulted, and which would result from the loss of plaintiff’s relationships with customers by reason of defendant’s actions. Accordingly, the district court had not abused its discretion in finding that, unless specific relief was granted, defendant's actions would cause plaintiff irreparable harm through loss of reputation, good will, and business opportunities.

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