U.S. Court Upholds Man's Criticisms of Wal-Mart

A U.S. District Court has recently upheld a man's right to criticize Wal-Mart, the U.S.-based discount department store company, through the use of the websites, www.walocaust.com and www.walqaeda.com, as well as parody-related merchandise. In 2005, Charles Smith began selling t-shirts bearing satirical statements about Wal-Mart through CafePress, an online retailer of user-customized products. At the request of Wal-Mart, CafePress removed such merchandise from its online store. In response, Smith sued Wal-Mart seeking a ruling that would allow him to continue marketing his merchandise. Wal-Mart countersued Smith, alleging trademark infringement, arguing that the logos used on Smith's merchandise tarnished Wal-Mart's trademarks and reputation. Wal-Mart also challenged Smith's use of the domain names. In deciding for Smith, the judge observed that Smith's websites effectively disassociated themselves from Wal-Mart stores through the use of disclaimers and links to the real Wal-Mart website. The judge further noted that the terms "Walocaust" and "Wal-Quaeda" were unlikely to be confused with Wal-Mart's trademarks since they were merely successful parodies of the widely recognized marks. Wal-Mart is considering its appeal options.

This entry first appeared in the April 3, 2008 edition of lawsof.com. For additional information, click here.