Blue Nile sues rival for stealing website photos, features

Seattle online diamond retailer Blue Nile Inc. is suing a New York-based company for allegedly pilfering photos and other features from its website and selling them to other merchants.

Blue Nile, in a lawsuit filed March 8 in U.S. District Court in Seattle (pdf, 20 pages), alleges that Ideal Diamond Solutions, based in Brooklyn, New York, and its founder Larry Chasin, made unauthorized copies of Blue Nile photos and other information and “incorporated them into hundreds of diamond and jewelry retailer websites.”

The lawsuit also accuses Ideal Diamond Solutions of using internet domain names with the term “blue” that trade on Blue Nile name and confuse customers. Blue Nile alleges, among other things, copyright infringement, trademark violation, and cybersquatting, and seeks an injunction, unspecified damages and legal fees.

The lawsuit highlights the significant investment that Blue Nile has made in its virtual storefront. The online jewelry company in September unveiled a major upgrade of its website that added larger diamond images, more gem information, and new online tools for building customized engagement rings.

The website makeover was designed to make customers feel more comfortable buying big-ticket jewelry items online. Blue Nile is competing aggressively with brick-and-mortar jewelry chains, many of which are struggling in the recession.

“While we do not comment on ongoing litigation, we believe Ideal Diamond Solutions is blatantly and pervasively infringing on our intellectual property,” Blue Nile spokesman John Baird said in a statement. “Blue Nile will always vigorously pursue those companies that violate our intellectual property rights.”

An email message to Ideal Diamond Solutions was not returned, and Larry Chasin did not return a phone call seeking comment on the lawsuit.

About Eric Engleman

ERIC ENGLEMAN is senior technology staff writer for TechFlash and the Puget Sound Business Journal, covering online retail giant Amazon.com. Engleman tracks Amazon's increasingly complex business, spanning ecommerce, Kindle, cloud computing, and more. He's been covering technology and other industries for the Business Journal since 2003.

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