Nominative Fair Use Doesn’t Stop Airbnb From Reclaiming Domain Name

When an entrepreneur registers a domain name that incorporates a world-famous trademark, sometimes they claim they are simply describing a legitimate third-party service. But a ruling from the U.S. Court of Appeals for the Ninth Circuit serves as a firm reality check for digital marketers and domain registrants looking to ride the coattails of big brands.

In Smith v. Airbnb, Inc., the Ninth Circuit affirmed the dismissal of an action brought by pro se plaintiff Alex Smith, who filed suit under the Anticybersquatting Consumer Protection Act (ACPA) to block Airbnb from reclaiming airbnbseo.com.

The appellate court’s decision offers a masterclass in the limits of nominative fair use, the strength of famous trademarks online, and why appending generic industry acronyms to a famous mark will almost never insulate a registrant from cybersquatting liability.