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February 11, 2012

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New York-New York wins trademark suit over Internet domain name

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Sam Morris / Las Vegas Sun

The view of New York-New York from one of the penthouse apartments at Veer Towers at CityCenter.

Wednesday, Aug. 4, 2010 | 4:04 p.m.

MGM Resorts International has won a trademark infringement lawsuit involving its New York-New York hotel-casino on the Las Vegas Strip, with MGM Resorts winning rights to the potentially valuable Internet domain name newyorknewyork.com.

Attorneys for MGM Resorts’ 2,024-room New York-New New York resort prevailed July 29 when U.S. District Judge Lloyd D. George in Las Vegas issued a default judgment against a company called NewYorkNewYork.com Inc.

The default judgment ordered that the website domain name be transferred to the casino company and that NewYorkNewYork.com Inc. pay the casino company $101,000 in damages – including $100,000 for violating the Anti-cybersquatting Consumer Protection Act.

George’s ruling came in a lawsuit alleging "cybersquatting" that was filed in U.S. District Court in Las Vegas in November.

The hotel-casino company charged in the suit that the website of Tarzana, Calif., man Ronnie Katzin, using the phrase "New York New York," infringed on the Las Vegas hotel-casino's trademarks covering that name for resort and hotel services not provided in the city or state of New York; and for casino services.

The website last year included an image of the Las Vegas casino property, but New York-New York in its lawsuit complained there was no disclaimer that the website had no affiliation with the Las Vegas casino property.

The lawsuit alleged that when users clicked on a banner, they were not re-directed to the hotel's official Web site, www.nynyhotelcasino.com, but instead to a third-party Web site. That site enabled website users to book hotel reservations at the Las Vegas hotel-casino as well as competing Las Vegas hotels.

That, the hotel-casino charged, showed: "Defendants have and/or had a bad faith intent to profit from plaintiff's New York-New York marks."

Katzin, however, said last year that he obtained the website name in about 1996, before the hotel-casino opened, and that he obtained the name as part of his love for the Frank Sinatra song "New York, New York" and to develop a website promoting New York City.

Katzin last year said he was doing the Las Vegas hotel-casino a favor by including an image of the hotel on the site, as many visitors to the site mistakenly went there thinking it was the hotel-casino’s website. He said a link to an Expedia hotel room-booking engine had been authorized by MGM Resorts.

After Katzin and attorneys for New York-New York traded legal briefs and Katzin attended a hearing last month, George issued his ruling against Katzin’s company saying:

--"Defendant registered and used the infringing domain name with the bad faith intent to profit therefrom."

--"Defendant made commercial use of a trademark confusingly similar to plaintiff’s marks by utilizing the infringing domain name to obtain web traffic."

--"Plaintiff and defendant are competitors on the Internet for Internet customers."

Ten months later, Katzin said Wednesday that his problem with the lawsuit is that he has been defending himself and making mistakes because he couldn’t come up with the $100,000 attorneys were saying they would need to take the case.

The casino company, on the other hand, has been represented in the case by as many as four attorneys from the Las Vegas law firm Brownstein Hyatt Farber Schreck.

Katzin, who controls the NewYorkNewYork.com Inc. company, continued Wednesday to deny the trademark infringement and cybersquatting claims against both him personally and against his company.

Katzin reiterated that he developed the www.newyorknewyork.com website years ago with the intent of focusing it on New York City and that’s still his goal, along with raising money to benefit 9/11 victims' families. But first he needs to find an attorney to represent he and his company at a cost he can afford.

The New York-New York casino attorneys, having prevailed against Katzin’s company, are continuing to pursue their claims against Katzin personally, court records show.

Katzin said he’s adamant about not settling, because a settlement could wrongly brand him as a cybersquatter – someone who registers domain names with the bad faith intent of profiting from well-known brands.

"I am not a cybersquatter," Katzin said.

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