The LAWCHEK® Bulletin
August 2000 | Vol. 3, Issue 3

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Types of Domain Name Disputes and Why they Arise

Part II: Domain Name Disputes
     When reviewing the domain name disputes brought to court, the evidence points that the majority of conflicts are surrounding .com addresses.  The .com gTLD has been made popular by strong commercial sites and general propaganda promoting the Internet to new users.   Thus everyone gets the gTLD as right now it is the most recognizable.
     One reason for increased tension over .com is that many users are assuming  that they should be using this gTLD.  However, not everyone should be using .com.  Non profit organizations and personal web pages have been resorting to the popular trend.  This gTLD was made for commercial sites in mind.  It seems popular propaganda has turned it into the "address of choice" regardless of use.
     The real reason for domain name disputes centers around SLDs.  Anyone with a name wants to have the SLD which identifies them online.   This is especially the case for established businesses.   Although different businesses in different geographical locations may use the same business name, only one may use the name on the internet which does not recognize geographical boundaries.  Add the similarities of names with the popular "hunger" for .com and what was a list of possibilities is dwindled down into one address of choice.
     When two people want the same .com address, it is usually given on a first come - first served basis.  When there is a trademark involved this is usually not the case.  If the trademark is not proven to be misused by the original owner then sometimes first come - first served is the rule (for an example see Fuji Photo Film Co Limited and Fuji Photo Film USA Inc v Fuji Publishing Group LLC).   However, many times the trademarked businesses have been receiving the upper hand in courts.  This seems to be related to the use of popular names for SLDs by those only out to generate profit.

Using an Existing Name for Profit
     When it comes to deciding who has the right to a domain name, trademark law is often brought in.  This is mainly due to the fact that some names are distinct and strictly for a type of product (one example would be Tylenol).   Another reason trademark law is used is that there is a long developing history of trademarked businesses being exploited by non-affiliated parties for profit.
     When a business has an established trademark in the US, it is generally good for 10 years at a time.  No one may infringe upon an established trademark by selling goods or services which may cause confusion with the original holder.   Nor may one reproduce the trademark without express permission of the original owner.  It is illegal to claim to be another business and use their trademark to market to an established clientele.  The most common way this is done online is the adoption of recognizable names as SLDs to set up scam operations.  For example, customers of an ISP server with the address www.value.net were sent the address www.valuehelp.net by a unaffiliated scam artist who informed customers to pay their bills there instead.1  This proves costly to the company as well as the customers.

     Another threat to trademarked businesses online is the registering of the SLD with the intent of offering it for sale; this is commonly known as cyber-squatting.  In the past many sites were registered by various unaffiliated users which would then contact the owners of the trademark and attempt to bargain a resale.   Sine the enactment of the U.S. Anticybersquatting Consumer Protection Act this is beginning to cease.  However, some users are still registering SLDs which are the same as a trademarked name and waiting for the trademark holders to contact them.  In most cases the users then ask for a reimbursement fee for efforts they put into a bogus site.
     Finally, some users are using misspellings of popular names to attract an established clientele.  For example, a recent case of Microsoft Corporation v. Global Net 2000, Inc. was centered around Global Net 2000, Inc. reregistering many variations of popular Microsoft sites.  These included such address as: hotmaill.com, otmail.com and homail.com.  This case was ruled in favor of Microsoft Corporation.  Under the Trademark Act of 1946 (Lanham Act), one cannot cause trademark dilution by being deceivingly similar in attempt to receive business or cause confusion which may hurt a trademarked name.

     The race for .com addresses has created a clash by businesses which may operate in different markets and geographical areas but are faced with the dilemma of a borderless online world.  In addition, the misuse of trademarked names has caused increased litigation surrounding trademarks.   In the first instance it is usually given to first come - first served.   However, when trademarks are involved, because of the character of some users out for profit, the courts have the tendency to rule in favor of the trademarked business.

 

 


Links to Domain Name Cases:

World Intellectual Property Organization
http://arbiter.wipo.int/domains/cases/index.html

CPR Institute for Dispute Resolution
http://www.cpradr.org/ICANN_Cases.htm

Disputes.org/eResolution Consortium
http://www.eresolution.ca/services/dnd/decisions.htm

National Arbitration Forum
http://www.arbforum.com/domains/


| Back to Main Page | Part I: Domain Names | Part III: Domain Name Resolution |

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