In 2001, Mattel sued the individuals whose domain names used its Barbie, Matchbox and Hot Wheels trade marks. Their domain names were registered in Maryland, Virginia and California.
Because the lawsuit was filed in New York, the company could not establish personal jurisdiction against the sites' owners. Mattel therefore invoked the Anticybersquatting Consumer Act of 1999 (ACPA) which allows action to be taken against a domain name, rather than the name's registered owner.
Such actions are known as "in rem" actions – meaning an action taken against a thing. The concept is better known in cases raised against ships.
A federal court in New York last year dismissed Mattel's claims. It ruled that, under the ACPA, the judicial district where the domain name is registered is the only place where in rem jurisdiction exists.
Mattel appealed the decision. However, the 2nd US Circuit of Appeals upheld the previous ruling. Mattel still has the right to sue the domain names in their jurisdictions.