Attention domain parkers and registrars offering “cash parking” and domain monitization services:

Yes, you can be held liable for contributory trademark infringement if you knowingly profit from your clients’ infringement.

So sayeth the Southern District of Florida.

More specifically, the allegations against the defendants included conduct enabling a class of customers comprised of fictitious entities and anonymous individuals to “monetize” counterfeit domain names, acting as their authorized licensee and/or otherwise in concert with them, profiting with them jointly in the process, concealing their identity when challenged, and intentionally or recklessly continuing to supply registration services to them with knowledge that they are fictitious entities engaged in trademark and service mark counterfeiting, or with willful blindness to that fact.

Transamerica Corp. v. Moniker Online Services, 672 F.Supp.2d 1353 (S.D. Fla. 2009)

I think this decision is exactly right – Moniker was essentially trying to argue that they weren’t the ones doing the actual infringing, yet they refused to identify the infringer and continued to profit from the infringement. It’s important to note that simply allowing a client to register an infringing domain name isn’t enough.

In this case, Moniker:

1. Provided registration and monetization services

2. Concealed the registrant’s identity when asked to identify the registrant

3. Allowed the registrant to continue to use its domain parking monetization service, from which Moniker also profited, even though it had knowledge that the registrant was willfully using another’s trademark in a confusingly similar manner

Read the whole decision here: Transamerica Corp. v. Moniker Online Services, 672 F.Supp.2d 1353 (S.D. Fla. 2009)