Sonic HQ

Dear Mr. Freda:

This firm represents Sega.com, Inc. and its affiliated companies (collectively referred to as “Sega” in this letter) with respect to certain intellectual property matters, and we are writing to you on Sega’s behalf. We are unaware whether your company has retained counsel for this matter and, therefore, write this letter directly to you. If your company is represented by counsel, please let me know his or her name and contact information for future communications.

As your company undoubtedly is aware, Sega owns numerous federal registrations and pending applications for trademarks comprised of or including the term SEGA or SONIC, such as the registered marks SEGA?, SEGA? (and Design), SEGA SPORTS?, SEGA VISIONS?, SEGA VIRTUA PROCESSOR? (and Design), SEGA SKI SUPER?, SEGA WATERSKI?, SEGA CD? (and Design), SEGA SATURN?, SONIC BLAST?, SONIC SPINBALL?, and SONIC THE HEDGEHOG: TRIPLE TROUBLE? to name only a few, for a wide variety of goods and services, including but not limited to computer game hardware, software and peripherals, video game programs, machines and peripherals, clothing, entertainment services, computer services, toys, and arcade game machines. Sega also owns several Internet domain names that incorporate its SEGA? and SONIC? trademarks and names, including but not limited to “www.sega.com,” “www.sega.net,” “www.sega.org,” “sonicdreamcast.com,” and “sonicdreamcast.net.”

In addition to these registrations, Sega’s use and promotion of its SEGA? and SONIC? marks and names have been quite extensive. Indeed, since at least as early as 1976, Sega has used its family of SEGA? and SONIC? marks and names in connection with its various entertainment products and services in countries throughout the world. Moreover, Sega’s “Sonic the Hedgehog” character (known throughout the world simply as “SONIC”) has been a prominent character in numerous of Sega’s games and its promotions of its entertainment products and services. Based upon Sega’s longstanding, continuous and extensive use of its SEGA? and SONIC? marks, names and domain names and its SONIC? character, Sega’s marks and its SONIC? character have become known worldwide to refer exclusively to Sega and its entertainment products and services and are entitled to protection under, among other things, the Federal Trademark Act (section 43(a) of the Lanham Act, 15 U.S.C. ? 1125(a)), the Federal Anti-Dilution Act (section 43(c) of the Lanham Act, 15 U.S.C. ? 1125 (c)(1)) and the Trademark Cyberpiracy Prevention Act (section 43(d) of the Lanham Act, 15 U.S.C. ? 1125 (d)(1)).

Notwithstanding Sega’s established rights in its SEGA? and SONIC? marks, names and domain names and its SONIC? character, Sega recently discovered your company’s and your improper and infringing use of Sega’s SEGA? and SONIC? marks and names and images (which appear to be illegally copied from Sega’s games) of its SONIC? character in connection with the gaming web site located at “www.segasonic.net.” Your company’s and/or your unauthorized use of Sega’s SEGA? and SONIC? marks and names and its SONIC? character on its web site, and its improper use of Sega’s SEGA? and SONIC? marks and names as a domain name, each unquestionably constitutes, among other things, intentional trademark infringement and dilution, as well a violation of the Trademark Cyberpiracy Prevention Act. Moreover, your company’s display of images of Sega’s SONIC? character (apparently copied illegally from Sega’s games) constitutes copyright infringement.

In the hope of avoiding formal legal proceedings, we hereby request, on Sega’s behalf, that your company immediately remove all infringing and illegal uses of Sega’s marks, images and other intellectual property from your company’s web site and transfer the “www.segasonic.net” domain name to Sega. Enclosed for your signature is Network Solutions, Inc.’s Name Change Agreement which we request that you complete and sign in the presence of a Notary Public.

We look forward to your written assurances to this effect no later than February 5, 2001. Please be advised that if your company fails to comply with this request, Sega will have no choice but to pursue its rights and remedies under the law, including damages (treble, statutory or other damages), injunctive relief, attorneys’ fees and costs. We look forward to your company’s prompt compliance.
Very truly yours,