Are domain names with corporation names in them illegal to use?

Discussion in 'Legal Issues' started by netstorm, Oct 16, 2007.

  1. #1
    Such as
    http://www.vbulletinskinz.com/ <-Vbulletin software
    http://www.ps3chat.com/ <- Sony Playstation
    http://www.wiichat.com/ <- Nintendo WII
    http://www.sprintusers.com/ <- Sprint Cell Phones

    If I own a domain like any of these, can the corporation push you around even though you are helping that company by giving the users information or a service that doesn't hurt the company itself?

    I'm worried about this because I bought a domain for a lot of money that is like these, and getting a cease and desist letter would not be good.

    Is there a way to just have a disclaimer saying you are a unofficial site at the bottom?
     
    netstorm, Oct 16, 2007 IP
  2. bluegrass special

    bluegrass special Peon

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    #2
    Generally, having a domain with a trademark in it leaves you open to action from the mark holder. Usually, the actions taken are a simple UDRP and not a lawsuit (though that does happen). There are exceptions to this, however, the vast majority of UDRP decisions go to the mark holder (not all, just most).

    There are several things to consider. First, and this is not part of the UDRP regulations, is to check the history of the company in question. Companies like Google and MySpace are very protective of their marks. So much so that it would not be worth the effort of developing such a site. Some companies don't seem to care at all, while others only seem to go after sites that are clearly hurting the reputation/sales of the company. Do a Google search for 'companyname domain dispute' without the quotes (and replacing companyname with the actual company. Of course, just because a company is nice now doesn't mean they will be.

    Second thing to do. Check the company's official website and see if they have posted a policy on the use of their mark. Not all companies do this, but you might get lucky.

    If at this point you still are thinking of using the domain, the three main issues that would be looked at (either in court or UDRP) in a dispute are:

    1) Is the domain identical or confusingly similar to a mark held by another? Would a casual observer likely think this is an official or sponsored site?
    - In the examples provided the answer would probably be yes.

    2) Does the owner of the potentially infringing domain have a legitimate interest in the domain? Is the interest in the domain non-commercial?
    - Legitimate interests could be that the person has a company/product that is known by the same name in a different industry. (Example of this is the Nissan.com site, the owner of the domain had been operating a business Nissan Computers for several years. Because the two industries were different - computers, cars - his use of the doamin was not found to be infringing.) A review site may be seen as legitimate, though not always.
    - Whether the site is commercial or not does not mean an automatic decision either way. However, non-commercial use of a domain is easier to defend (generally) than commercial use. Further confusing this issue is that commercial v. non-commercial is not always easily defined (particularly in UDRP). A site that only has ads would certainly be commercial. A site that has free content with ads may or may not be seen as commercial. In other cases, having a commercial website has in some instances been seen as okay (www.porschebuy.com).

    3) Were the domain names registered in bad faith?
    - If a domain is registered before the trademark was being used (used, not registered) then it is very difficult for the complainant to prove bad faith unless the domain holder then changes his/her content to clearly make money from the fame of the other company's mark.
    - If the domain contains a mark (or is very similar to the mark) then bad faith can be shown by the domain holder: selling/reviewing competing products, attempting to make users believe the site is somehow official, or having no legitimate use for the site (parking the domain without a development plan).
    - Bad faith can also be assumed if the respondent has a history of losing similar disputes or the respondent owns several domains that are potentially infringing on other marks (which do not have to be related to the domain in question).

    More Info
     
    bluegrass special, Oct 16, 2007 IP
  3. tushardhoot1

    tushardhoot1 Active Member

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    #3
    Basically they won't push you around as you're helping their business, but if you say one wrong thing against them or they get even a bit mad, you're gone. You are better off with a non-copyrighted domain so you don't have the sword over your head all the time.
     
    tushardhoot1, Oct 16, 2007 IP
  4. DomainDunk

    DomainDunk Peon

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    #4
    "Basically they won't push you around as you're helping their business, but if you say one wrong thing against them or they get even a bit mad, you're gone. You are better off with a non-copyrighted domain so you don't have the sword over your head all the time."

    This is not always true. You would be amzed at how far communications with a companies legal department goes if its in question. Many companies that we have been working with for clients are understanding.

    I have seen more stupid & evil individuals get sued and kids who aren't watched by the parents. If in a different market or covering yoru butt 99.9% of the time you'll be fine.

    Communication is the key to success.
     
    DomainDunk, Oct 16, 2007 IP