Activision responded to Warzone.com, LLC's counterclaim with a motion to dismiss the counterclaim and grant judgement on the trademark infringement pleadings. You can find it at
https://drive.google.com/file/d/1oBDBQMIS8WVzTylVI-PrlEg22lF4P5nJ/view?usp=sharingI highly recommend reading it if you don't understand what Activision's argument is or believe this is going to be a clear-cut victory for Warzone.com, LLC, if they just show up in court. It's also
very spicy (see the footnotes) and a fun quick read. The first paragraph makes Activision's case for why this is actually a clear-cut victory for Activision:
This case presents a textbook example of trademark overreach. Defendant and Counterclaimant Warzone.com, LLC (“Counterclaimant”) is a game developer that distributes a game titled Warzone. Though Counterclaimant’s Warzone is just one of more than a dozen games whose title includes that common English word “warzone,” by this lawsuit, Counterclaimant seeks to prevent Plaintiff and Counterclaim-Defendant Activision Publishing, Inc. (“Activision”) from using the word “warzone” as a subtitle for an installment in its enormously popular Call of Duty series of games – notwithstanding that Activision’s Call of Duty game is about military combat in a virtual warzone.
If you're waiting for the next update, we should get something by late August. The date Activision keeps referring to is August 27, 2021, but things might happen earlier or later.
Quick recap for those just tuning in: There's two claims (cases) in play.
Activision v. Warzone.com, LLC, which stems from Activision's claim, seeks to force Warzone.com, LLC, to drop any claims of trademark infringement against Activision. This case also claims that "warzone" is a
descriptive word mark- in other words, that the word "warzone" merely describes a game like
Call of Duty: Warzone (which takes place in a virtual warzone). Descriptive word marks are usually not granted trademark protection,
except when they have gained secondary meaning in the minds of consumers (like "Sharp" has for Sharp televisions). In full, Activision claims that "warzone" just describes the game
but when someone hears "warzone," they think
Call of Duty: Warzone. This is important because trademarks are supposed to be
source identifiers rather than
product identifiers- so they're arguing that "warzone" in a video game makes the consumer believe they're dealing with Activision. Accordingly, Activision asks for the court to grant them the trademark registration for "warzone" (which Warzone.com, LLC, has objected to), to grant them the trademark for "Call of Duty Warzone" (which Warzone.com, LLC, has also objected to, claiming it violates their own "warzone" trademark), and (obviously) to deny Warzone.com, LLC, their requested trademark registration for "warzone."
In response to
Activision v. Warzone.com, LLC, Warzone.com, LLC filed a trademark infringement counterclaim against Activision-
Warzone.com, LLC v. Activision. They claim that "warzone" is either a suggestive word mark or an arbitrary word mark, both of which are inherently distinctive (and therefore trademarkable by whoever is the first to use them). A suggestive mark is a mark that
relates to the product but requires some non-obvious logical leaps to connect it- for example, "Gorilla Glue" suggests something to do with strong glue (gorillas have strong grip) but the connection is non-obvious enough that, if you hear "Gorilla Glue" you only think of one company's brand rather than strong adhesives in general. An arbitrary mark is a mark that has
some meaning but that meaning is totally unrelated to the product- like "Apple" for the computer company- so that consumers hear "Apple" in the context of computers and only think of one brand, not some specific types of computer products. Furthermore, Warzone.com, LLC, claims that Activision has infringed upon their trademark by naming their game
Call of Duty: Warzone, and therefore Warzone.com, LLC, asks the court to prevent Activision from further using the word "warzone" to sell their video games and/or make Activision pay Warzone some amount of money to make them whole, plus some additional money for bad behavior (intentionally infringing on someone's trademark). Specifically, Warzone.com, LLC, claims reverse consumer confusion, which is a special case of trademark infringement (consumer confusion) where a big company jumps in with a product that uses the smaller company's brand, causing consumers to associate the brand with the big company instead. Note that proving Activision is a big company and that their use of "warzone" harmed Warzone.com, LLC, isn't enough: Warzone.com, LLC, still has to prove that they have a trademark and that this trademark was infringed upon. It's perfectly legal if someone destroys your business in fair competition; what Warzone.com, LLC, has to instead prove is
unfair competition- and their path to doing so here is by proving that Activision had no right to use "warzone."
The latest: Activision had until today to respond to the counterclaim by Warzone.com, LLC. They asked for and (with Warzone.com, LLC's agreement) received one one-month deadline extension so they and Warzone.com, LLC, could come to a settlement and not have to go to court. Today, as the deadline extension ran out, they filed a strongly-worded motion to dismiss Warzone's claims (of trademark infringement) as their response to the counterclaim.
They ask for the judge, on August 27, 2021 (or as soon as possible after that), to dismiss the counterclaim and end the countersuit. This would still leave the original claim- and the question of who gets the registered trademark for "warzone"- in play.
You can read it here:
https://drive.google.com/file/d/1oBDBQMIS8WVzTylVI-PrlEg22lF4P5nJ/view?usp=sharingAnd find the other main documents here:
https://drive.google.com/file/d/1oBDBQMIS8WVzTylVI-PrlEg22lF4P5nJ/view?usp=sharing
Facts we don't have: As we gawk at these documents, it's worth remembering that a lot of the information about this case is non-public. For example:
- We do not know how the settlement negotiations are going (although with the latest document, I suspect not well)
- We do not know what amounts of money are being asked for or offered in settlement. Per
https://www.washingtonpost.com/video-games/2021/06/04/warzone-name-lawsuit/, Warzone.com, LLC, initially asked for 0.25% of
Call of Duty: Warzone's profits (we don't know how profitable
CODWZ is, but per Activision, Warzone.com, LLC, "demanded millions of dollars in damages"), while Activision countered with $10,000- this happened before April 2021. We can make informed speculations about what the parties
might be offering- e.g., Activision's legal fees if they pursue this case to its end (and win) can easily get into the six figures, so rationally they would save money if they offered Warzone.com, LLC, a settlement offer less than that. But of course, we don't know whether the parties are being reasonable- for all we know, Activision could be offering $1 and demanding Warzone.com, LLC, shut down their game, or Warzone.com, LLC, might still be asking for millions of dollars in damages.
- We do not know what's going on with the dispute around the alleged cease-and-desist letter. We know that Activision claimed that Warzone.com, LLC, sent them a cease-and-desist on November 20, 2020. Although Fizzer claimed several times- on this thread and elsewhere- that Activision fabricated a "flat-out 100% lie," apparently out of thin air- we now know that Warzone.com, LLC, sent Activision a letter on November 20, 2020. However, Warzone.com, LLC, disputes whether this letter was a cease-and-desist letter. While the letter has been submitted into evidence by Warzone.com, LLC, it is not public (as far as I can tell). We do not know what the contents of this letter are. That said, we again can make informed speculations: we know, from a direct quote in Activision's initial claim, that this letter contains the phrases "change the name of its games, stop using Warzone’s WARZONE mark, and abandon the trademark applications." This could be in the context of (as Activision claims) demanding Activision do all those things, or it may have simply been a statement by Warzone.com, LLC, that a court
might make Activision do all those things if they go to court and lose (but that's also something you'd put in a cease-and-desist letter). We know, in general, that this letter has something to do with Activision ceasing its use of the alleged "warzone" mark, and that it in some way hints at the idea of Activision having to potentially pay massive damages (per Activision's characterization) in court if they do not do those things. For what it's worth, "cease and desist" isn't some legally meaningful term that triggers special behavior, there's nothing particularly special about C&D letters (they're just a common practice, not some magical class of legal document), and what counts as a cease-and-desist letter is
really broad. It's not clear to me why the characterization of the 2020/11/20 letter as "cease-and-desist" is in dispute, especially since the discourse in this thread and elsewhere around Activision's C&D claim has more to do with whether Warzone.com, LLC,
initiated the fight by poking the bear and asking for millions, rather than whether they specifically did so in the form of a cease-and-desist letter.
And, crucially:
- We do not know Warzone.com, LLC's response to the various claims and legal arguments in Activision's motion to dismiss. We'll hopefully get them soon, and I hope they're just as spicy!
Disclaimer: While this update attempts to be even-handed, its author is not impartial and looks forward to an Activision win.
Edited 7/30/2021 13:00:38