Legal News

WIPO Wants Registrars Held Responsible

I was reading Mike’s Blog today about WIPO wanting domain registrars to be held responsible for their registrants’ trademark infringing domain names, and I give it a thumbs up.   In fact, I said the same thing back in March of 2008, “Registrars Should Help Prevent Cybersquatting.”

I believe that many people register domain names that have trademarks in them without really knowing the risks involved. When I first started buying domain names circa 2003-04, there were a few trademark names that I purchased.   I didn’t know the legalities of this, and when I found out, I canceled the few that I owned and bought back a few that I had sold, and cancelled them, too.   Although the likelihood of getting sued for names I created out of thin air was small, I didn’t want to deal with them.

I do understand why some companies invest in trademark domain names that receive traffic and generate revenue. It’s a business decision that some companies have to make, but in most cases, new registrations are way more of a liability than a profitable business.   I cringe when I see names for sale on Ebay like MicrosoftProductDownloads.com (or something similar), because they are screaming at Microsoft to file a lawsuit (this one happens to be unregistered). I attribute some of these new registrations and sale attempts to people who aren’t aware of the legal ramifications and liabilty a name like this can have.

I think the domain registrars should be a bit more responsible when it comes to names that are obvious trademarks.   Sure, there is a considerable gray area, but if they were required to warn registrants about potentially infringing domain names (like the Surgeon General warns smokers), there would be a lot less cybersquatting – and consequently less revenue for the registrars.

Upon further review, back in July of 2007, when I first started blogging, I said the following, and I still agree with it today (aside from the term “crime” as it’s not technically criminal).

In my opinion, a majority of trademark inclusive domain names aren’t owned by malicious people, but rather those who don’t know it is against the law. As a measure against unlawfully registering a domain name with a trademark, what if registrars required consumers to check off a box acknowledging that they are aware of the Lanham Act and its penalties before every registration? Perhaps even a brief summary of the law along with the possible penalties of owning/selling/profiting from a trademarked name would act as a deterrent to people who may be unknowingly committing a crime.

I believe the sooner we police our industry, the better things will be for us all.

ICANN Issues to Be Concerned About

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Mike Berkens has written three interesting posts that are important for all domain owners to read and understand. When you have an opportunity today, please read Mike’s posts and the accompanying commentary. The issues that are discussed could potentially impact all domain owners

ICANN Releases New gTLD Guide Book: Still Includes No Price Caps: Your Domains Are At Risk

ICA: Trademark Holders Attempting To Greatly Expand Their Rights Through The New gTLD Process

Thinking About Applying For Your Own gTLD? It Could Cost You A Lot More Than $185K

The Internet Commerce Association is working on some of the issues, but I know they need our support (if you own a domain name, you are part of the collective “our”).   As soon as my tax bills are taken care of in a month and a half, I will be making my annual contribution.

Top Search Result for “Jackass:” Viacom

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Late last year, Viacom, the parent company of MTV, filed a UDRP for the domain name Jackass.com, one of thousands of generic domain names owned by Future Media Architects. Since FMA doesn’t sell their domain assets, the UDRP would seem to be the only “cost effective” way to acquire the domain name. In a fairly lengthy decision dated January 30, 2009, the single panelist ruled in favor of Future Media Architects.

One of the most convincing factors that led to FMA’s prevailing in this decision was that they held a US trademark for “JACKASS” in relation to computer services.   The trademark was registered by the USPTO in September 2005 after a full standard review of the trademark application.   Although FMA planned to use Jackass.com for adult services, they changed their business model in favor of a search engine.

According to the sole panelist in this decision, the trademark tipped the scales in FMA’s favor:

“Thus, here the evidence suggests that the domain name was acquired by the Respondent because of its descriptive value, but has been used on a pay-per-click website in a way that is not clearly related to that descriptive value but also not clearly related to the Complainant’s trademark. In some circumstances, these facts may not be sufficient for the Respondent to show that use of the disputed domain name is bona fide. Here, the Respondent has an additional factor in its favour a United States trademark registration covering search engines. In these particular circumstances, the Respondent could be said to be providing, or at least to have taken some demonstrable steps towards providing, a search engine under the Jackass brand. That, in this Panel’s view, is enough to tip the finely balanced scales in the Respondent’s favour on the provided record in this particular case.”

It’s unfortunate that FMA needed to hold a trademark in order to keep their generic domain name, but a win is a win.   If Thunayan Khalid AL-Ghanim chooses to forego the search engine route and needs some material for his site, I know where he can find it.

LH.com Is Back Online

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LH.com is back online.

As you may recall, Lufthansa Airlines won a highly criticized UDRP decision for the name, but Future Media Architects, the owner of LH.com immediately filed suit to prevent the transfer of the domain name. FMA owns a tremendous number of great domain names, and they have a policy of never selling a domain name.

While a UDRP prevents the transfer of a domain name or changes made to it, a lawsuit generally stops the website from working.

As of this morning, LH.com is back online.

Breaking: Kentucky Appeals Court Ruling

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According to a report on Fox 17 in Nashville, the Kentucky Court of Appeals. has blocked the state’s attempt to seize gambling domains. The decision can be read online.

Essentially, the appeals court ruled that domain names are not “gambling devices,” and as a result, the initial ruling could not hold since the law pertains to “gambling devices.” The ruling did not address other issues involving the domain seizure, so the law could potentially be revised to include domain names, and perhaps they could be at risk again in the future in Kentucky.   I suppose it really depends on how much time and effort the Kentucky Legislative and Judicial branches wish to devote to this.

Mike Berkens, who has provided extensive commentary on the Kentucky domain seizure, has provides additional feedback on the ruling today.

Meg Whitman, Former eBay CEO, Loses UDRP

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Meg Whitman filed a UDRP for several domain names, including megwhitmanforgovernor.com, megwhitman2010.com, meg2010.com, whitmanforgovernor.com, and whitman2010.com. The respondent did not file a response in this case, yet the panel ruled in favor of the respondent and denied Whitman’s complaint.

Whitman and her attorneys argued that Whitman has established common law rights to her name due to her many professional activities and success. She built eBay into a huge company, currently sits on its board of directors, and she speaks internationally.   They also argued that the domain names were registered right around the time there was speculation about her running for governor.

In denying the complaint, the panelist stated several things that, in my opinion, seem a bit inconsistent with what I perceived as the rule regarding owning names related to a famous/well-known person.   Previously I thought that it wasn’t permissible to make money on a domain name that is or contains the name of a famous person, when the revenue being generated is due to that person’s fame or notoriety.   IMO, anyone who would navigate to those sites is looking for the Meg Whitman.   Anyway, it’s interesting to note.

Some of the interesting notes from the panelist include:

“Merely having a “famous” name is not sufficient to establish common law trademark or service mark rights in the name. “

“fame alone is not sufficient to establish common law trademark or service mark rights in a personal name. Rather, the Complainant’s personal name must be used such that a relevant segment of the public comes to recognize her name as a symbol that distinguishes her services from those of similarly situated service providers. “

“Unlike the complainants in Monty and Pat Roberts, Inc., and Steven Rattner, supra, the Complainant here has presented no evidence of the actual use of her name as a source indicator in connection with the services she is claiming.”

I suppose if they claimed that the PPC links that were on the sites were related to Meg Whitman or eBay, they might have been better off.   I guess we won’t know unless she files a federal lawsuit.

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