If I have a domain name that contains a fameous company name, just say for example, sonysales, and I then sell or promote their products on the site, will that likely lead to legal problems? What if I prominantly display the website is not affilated with sony. Thanks much.
Nope. If you are using a domain with a trademark in it and using the trademarks established name to add trust to your offerings, you're in hot water.
As long as you are selling/informing/discussing/not defaming the product in the domain name, and letting people know you are not a part of the company, it's ok as far as icann is concerned. Not saying the company will never complain. They can still file with icann and ask for the name to be taken away from you, but you will win. Here's a interesting case to study: http://www.wipo.int/amc/en/domains/decisions/html/2004/d2004-0481.html //not legal advice, I just had a similar issue myself and did a little research.
any site name with a company's name will automatically be thought of as "misrepresentation", and that company will definitely go after you. The best advice is to just park that domain and hope someone buys it.
Selling or promoting a product does not get around trademark infringement. You must have permission to use a trademarked term in a domain domain when your site's content relates to the trademark product or service, or is overlapping (same classification). When you are talking about a famous company, the chances of them granting you permission to use the domain is very, very small. Contacting them after you already have the domain can actually force them to take action - as the law requires them to take action to prevent their trademark from becoming genericized. It's a common mistake to think "Hey, I'm promoting their product and giving them business - so why would they care?"
There are two seperate issues being discussed here. One was the findings of an ICANN committee, and, as the information contained in that link clearly showed, the following information is very much relevant: In other words, the UDRP regulations only relate to usage and registration of domain names. Their authority and regulations are restricted to this. They have no authority or legislative powers in any way to decide whether the usage of a registered mark in a domain name, in any shape manner or form, is illegal. SO... even if one were to be successful in a challenge concerning the domain name with the like sof ICANN, is NOT a guarante that you would be able to fend of a legal challenge thru the courts. There was a similar case recently with the Irish based cheap flights company Ryanair, and they lost their case: http://www.theregister.co.uk/2006/12/29/wipo_rules_against_ryanair/ Again, that is not to say that they could not raise a legal action against use of registered marks. Companies often use ICANN and WIPO as first ports of call for disputes such as these because it is cheaper than immediately going to court. Court costs are far more expensive than arbitration panels, which is that ICANN and WIPO are - arbitration panels.
Can you guarantee to the OP they'll win? These kinds of disputes, like court cases, are fact-intensive, and are decided case to case. Mjewel gave one relevant question to consider the risks. You may not care, but others don't have to see it the way you do.
As a followup, how does embedding a trademarked name with in a domain differ from any third party site which uses registered trademarks in their content to sell products. Most of these sites are neither affiliated with nor officially sanctioned by the respective companies. Ebay alone must have millions of registered trademarks in its content. I also notice some sites reference trademark names in their page titles which show up in search engines. I suppose I'm answering my own question here as it seems the legal leverage for these issues revolve around either bad faith usage or people being confused by thinking they are going to the site of the trademark owner. Any more thoughts.