Reference no: EM131657292

Question: In February 1999, Bob D'Amato registered the domain name www.audisport.com. He posted content to his Web site in June 1999 and April 2000. Believing that employees of a dealership that sold Audi automobiles had given him verbal permission to use Audi trademarks on his Web site, D'Amato commissioned another party to create a logo that incorporated portions of an Audi trademark, the company's rings logo. He used the commissioned logo on his site and posted links to another party's site, www.audisportline.com, which sold Audirelated items. Other content posted on D'Amato's site used the Audi name and other Audi trademarks. The site also contained a statement that "[w]e are a cooperative with Audi of America, and will be providing the latest products for your [Audi automobiles]." Although he requested the dealership's written permission to use Audi trademarks, D'Amato never received the written permission. Audi's agreements with its dealerships forbade them from granting anyone permission to use Audi trademarks. D'Amato later ceased using the Audi trademarks on his Web site. He ended up earning no profits from the site. Even so, Audi sued him for trademark infringement and dilution when it learned of his activities. Was D'Amato liable for trademark infringement? Was he liable for trademark dilution?