We are intellectual property counsel to PayPal, Inc. of Palo Alto, California. As you are well aware, PayPal provides financial services under the PAYPAL name and service mark and owns and operates the website at . Our client's name, service mark and website are among its most valuable assets.
We have recently been made aware of your operation of two websites, and , that infringe our client's service mark rights in the PAYPAL mark. Printouts of your websites are attached to the confirmation copy of this letter. We further understand that these websites provide a forum to criticize PayPal, Inc. Our client respects your right to do so--provided your websites do not contain any false, disparaging or defamatory statements. We must remind you that any such statements contained on your websites are actionable and can subject you to liability.
Regardless of your purported mission, your use of our client's PAYPAL mark in connection with the operation of websites and in domain names constitutes trademark infringement. Quite simply, use of the PAYPAL mark in a commercial manner is not protected free speech. It is quite evident from your websites that you are profiting off of the PAYPAL mark by selling banner advertisements, offering competing financial services, and using your site to attract PayPal's customers for your own commercial gain. For such infringement, you can be held liable for monetary damages (tripled), an injunction and our client's attorneys' fees.
On behalf of our client, we must insist that you immediately cease all further use of the PAYPAL mark and transfer the domain names to our client. We further demand that you provide an accounting of the profits that you have received in connection with your operation of these websites.
Your swift and full cooperation would enable us to resolve this matter quickly and on an amicable basis. Please contact me as soon as possible, and no later than June 7, 2002, so that we may facilitate a prompt resolution of this matter.
Very truly yours,
Anthony J. Malutta
TOWNSEND and TOWNSEND and CREW LLP
Two Embarcadero Center, 8th Floor
San Francisco, CA 94111-3834
Tel: 415.576.0200
Fax: 415.576.0300
They may however, just cut off access through Paypal API.