Yahoo! alleges that defendant committed trademark infringement by sending fake ltotery spam. Defendant brings counterclaim alleging that (1) he didn’t commit infringement; (2) therefore he is being defamed. Yahoo! moves to dismiss counterclaim. Court notes in decisding Yahoo’s motion to dismiss it must treat non-moving party’s factual allegations as true, not its legal conclusions. Even if defendant didn’t commit trademark infringement, pertinent statements made in a course of a legal proceeding have an absolute privilege against defamation.