High Court of England and Wales Rules in Favor of United Online Subsidiaries Interflora, Inc. and Interflora British Unit

  High Court of England and Wales Rules in Favor of United Online Subsidiaries
  Interflora, Inc. and Interflora British Unit

High Court Rules that Marks and Spencer's Use of the "Interflora" Trademark as
  a Google AdWord to Advertise Its M&S Flowers & Gifts Website Was Trademark
                                 Infringement

Business Wire

WOODLAND HILLS, Calif. -- May 21, 2013

United Online, Inc. (Nasdaq: UNTD), a leading provider of consumer products
and services over the Internet, announced that the High Court of England and
Wales issued its judgment in favor of United Online’s FTD subsidiaries,
Interflora, Inc. and Interflora British Unit, in their long-running lawsuit
against Marks and Spencer plc. In December 2008, Interflora, Inc. and
Interflora British Unit initiated proceedings against Marks and Spencer in an
attempt to stop Marks and Spencer from bidding on the “Interflora” trademark
on Google. In today’s ruling, the trial judge concluded that Marks and
Spencer’s use of the “Interflora” trademark as a Google AdWord to advertise
the Marks and Spencer’s Flowers & Gifts website constituted trademark
infringement.

In the ruling, Mr. Justice Arnold, the trial judge, stated:

“[T]he M&S advertisements which are the subject of Interflora’s claim did not
enable reasonably well-informed and reasonably attentive internet users to
ascertain whether the service referred to in the advertisements originated
from [M&S or Interflora] ... On the contrary, as at 6 May 2008, a significant
proportion of the consumers who searched for 'interflora' and the other Signs,
and then clicked on M&S’s advertisements displayed in response to those
searches, were led to believe, incorrectly, that M&S’s flower delivery service
was part of the Interflora network.”

“We are very pleased with the judgment which marks the conclusion of the trial
of a legal case that began in 2008 and involved hearings before the Court of
Justice of European Union and the UK Court of Appeal before finally returning
to the High Court for trial,” said Mark R. Goldston, Chairman, President and
Chief Executive Officer of United Online. “This judgment supports all the hard
work and effort our Interflora, Inc. and Interflora British Unit subsidiaries
have put into defending the Interflora brand.”

Robert S. Apatoff, President of FTD Companies, Inc., added, “This judgment
means that Marks and Spencer cannot bid on the trademark term 'Interflora' in
the Google AdWords program. Keyword advertising is a very powerful tool and
from a consumer protection perspective, it is important that Internet search
results take consumers directly to the brands they are seeking. We wanted to
ensure that when consumers search on the Internet for 'Interflora,' they can
be confident in knowing that the flowers they purchase are coming from a
member of the Interflora floral network.”

The case will return to court later in the year to determine how much Marks
and Spencer must pay Interflora, Inc. and Interflora British Unit by way of
damages and costs. Each party may seek permission to appeal.

About United Online^®

United Online, Inc. (Nasdaq: UNTD), through its operating subsidiaries, is a
leading provider of consumer products and services over the Internet, where
their respective brands have attracted a large online audience that includes
more than 100 million registered accounts worldwide. The company's FTD segment
provides floral-related products and services (FTD, Interflora, Flying
Flowers, and Flowers Direct) for consumers and retail florists, as well as
other retail locations offering floral and related products and services. The
company's Content & Media segment provides online nostalgia products and
services (Classmates, schoolFeed and StayFriends) and online loyalty marketing
(MyPoints). Its primary Communications segment service is Internet access
(NetZero and Juno), including 4G mobile broadband (NetZero Wireless).

United Online, FTD and Interflora are trademarks or registered trademarks of
United Online, Inc. or its subsidiaries. All other company or product names
are trademarks of their respective owners.

Contact:

United Online, Inc.
Investors:
David Bigelow, 818-287-3560
dbigelow@corp.untd.com
or
Press:
Scott Matulis, 818-287-3388
pr@untd.com
 
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