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Those liberal pleading rules have allowed Jones Day to survive a Motion to Dismiss Under Rule 12(b)(6) for Failure to State a Claim with respect to its trademark infringement lawsuit against BlockShopper, a website which collects publicly available information on real estate transactions, for identifying two law firm associates (Dan Malone and Jacob Tiedt) who purchased some expensive condos as being employed by ?Jones Day? and linking their names to their Jones Day website bios. See previous blog posts here and here.

News reports of the court?s opinion can be read here, here and here. The actual opinion can be downloaded here.

The court, accepting all well-pleaded factual allegations set forth in Jones Day?s complaint as true, found that Jones Day had plead sufficient facts to make out ?plausible? claims for trademark infringement and trademark dilution.

While the court allowed the case against BlockShopper to proceed, the court did dismiss claims against the company?s principals, Brian Timpone and Edward Weinhaus, on the basis that the complaint did not have sufficient allegations to plausibly state a claim of individual liability against the two principals for infringement by the company.

Vegas?Esq. Comments:

I wonder how many people out there can truly appreciate how much this lawsuit is going to cost Blockshopper to defend in terms of legal fees. To the extent that Blockshopper is being charged for time spent by its attorneys, Blockshopper has probably already spent about $10,000 to $20,000 up to this stage. And since the court has chosen not to dismiss the complaint, BlockShopper will now have to file an answer (another $5,000 and possibly up to $10,000 if counterclaims are included). Discovery will soon begin thereafter. Jones Day will use its behemoth resources to deluge BlockShopper?s counsel with document requests and other discovery ? all of which BlockShopper?s counsel will have to treat seriously and spend countless hours reviewing such discovery and preparing responses thereto (another $10,000 to $20,000). And that?s just the beginning of discovery. Add $25,000 to $50,000 for additional discovery (assuming Jones Day comes out guns blazing) and then $25,000 for the Summary Judgment Motions.

All of this just for posting public domain information online.

And the truly sad part of it all is that even if Blockshopper ultimately wins this case (and is there anybody out there not employed by Jones Day who thinks they won?t?), the company might not be able to recover its attorney?s fees for having to defend this case. The court has the authority under 15 U.S.C. § 1117(a) to award a winning defendant in a trademark case attorney?s fees in ?extraordinary circumstances? ? however, so long as the claims are deemed to be not frivolous or unreasonable (and Jones Day will certainly fight hard to show that even though it lost, its claims were not frivolous or unreasonable), then an award of attorney?s fees will be denied.

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