Lamborghini Sues Nashville Car Dealer Over ‘Website Name’

ArbitrationDecember 3, 2023

When it comes to trademarks, being clever does not always pay off. Lamborghini, the iconic Italian luxury car manufacturer, has found itself in a legal tussle with a Nashville car dealer. If nothing, it highlights the intricate balance between smart business moves and potential trademark infringements.

The trouble began in 2021, with Lamborghini’s entry into the Nashville market. Excitement about a new dealership quickly turned into a domain name dilemma. The desired website name, “lamborghininashville.com,” was not available.

Jay / Pexels / Lamborghini had sued Velocity Motorcars a Nashville-based car dealership) for using the website domain name “lamborghininashville.com” earlier in 2021.

However, this domain had been owned since 2011 by John Pasas, the proprietor of Velocity Motorcars on Murfreesboro Pike. It is a luxury car dealership with occasional Lamborghini in its inventory but no official ties to the Lamborghini brand.

The First Legal Salvo

Recognizing the potential for brand confusion, Lamborghini sent a cease and desist letter to Pasas in August 2021. The luxury car giant contended that the domain name could mislead customers into thinking that Velocity Motorcars was an authorized Lamborghini dealer.

In 2022, Lamborghini’s concerns were validated by the World Intellectual Property Organization (WIPO). The U.N. body ruled that the domain was being used in bad faith by Pasas, leading to an order for Velocity Motorcars to transfer the domain to Lamborghini. This seemed like a clear victory for the car manufacturer. But the saga was far from over.

Antoni / Pexels / Back in 2022, the Nashville-based car dealer acknowledged that it would not be using the domain and transfer it to the luxury car brand.

However, the story does not end here. Unfazed, Pasas acquired a new domain name, “lamborghiniofnashville.net,” redirecting visitors to Velocity Motorcars’ website. This move was seen as a clever circumvention of the earlier ruling, but it also reignited the legal battle.

Lamborghini’s Counterstrike: A Second Lawsuit

Lamborghini has once again taken legal action, suing over the new domain name. The automaker argues that “lamborghiniofnashville.net” could still be easily mistaken for Lamborghini’s official online presence.

The lawsuit claims that Velocity Motorcars is not only misleading customers. But also damaging Lamborghini’s reputation and unjustly profiting from its well-established name.

Thus, this ongoing dispute underscores a broader challenge in the digital age: The protection of trademarks in the realm of domain names. As businesses increasingly rely on the internet for branding and customer outreach, the importance of domain names aligning with trademarks has become paramount.

Denys / Pexels / Now for the second time, Lamborghini is suing the car dealer for using another ‘misleading’ website name “lamborghiniofnashville.net.”

The Underlying Issue: Brand Identity and Consumer Perception

At the heart of this legal battle is the issue of brand identity and consumer perception. Lamborghini, known for its exclusivity and luxury, is fiercely protective of its brand image. The company’s concern is that customers might be misled into thinking that Velocity Motorcars is an endorsed or official Lamborghini dealership, potentially diluting the brand’s exclusive appeal.

As the case proceeds, the automotive world watches with keen interest. The outcome could set a precedent for how trademark law is applied to domain names and online branding. For now, the question remains: Will Lamborghini’s legal efforts pay off? Or, will Velocity Motorcars find a way to retain its cleverly chosen domain?

So, as businesses navigate this digital landscape, they must balance creativity with respect for intellectual property laws to avoid finding themselves in a similar predicament.