The Line Between Legal Domaining and Illegal CyberSquatting

In my last blog posting, I discussed protecting your business name in an expanding domain name system. Since this blog covers business transactions, let me address one transactional element of domain name acquisition.

The expansion of the domain name system may create more opportunities for people to profit from the domain name system. A domainer buys internet domain names with the intention of re-selling them for a profit. While domaining methods do spark some controversy, there are legal methods of operating a domaining business. However, those hoping to profit from domain name rentals and sales need to make certain that their business models do not push them into the category of cybersquatters.

Cybersquatters also acquire internet domain names with the intention of re-selling the domain name at a significant profit. However, instead of acquiring generic words like fastcar.net and tool.com, cybersquatters register domain names that are identical to well-known brand names and trademarks and often try to re-sell those domain names to the trademark owners.

A cybersquatter can lose control of the domain name and face other legal consequences in a Uniform Dispute Resolution Procedure or in a lawsuit filed under the AntiCybersquatting Protection Act.

Comments

[Richard Stewart]

Here's my situation:

I own a business called RvStewartRentals, which specializes in the rental of privately-owned motorhomes and travel trailers. Last year, I was an agent for an owner who had ten units on my site at http://www.newmexicorvrentals.com and I did quite well for him. This year he decided to represent himself and set up his own website, http://www.sterlingrvrentals.com, which is his legal right; however, he has done a couple of things that I believe are a blatant infringement on my business:

1. He lifted the designed content of his units from my site, including the link pages, and placed them on his site. (Although I have removed his units from my site, I still have them saved.)

2. Knowing that I do not use my trade name in my URL, he has purchased a URL with my business name in an attempt to direct RV rental business to his page: http://www.rvstewartrentals.com. He also uses another URL address very similar to mine: http://www.nmrvrentals.com.

I've been in business for more than 35 years and he's just starting out; the theft and deceit from my many years of experience is quite obvious.

What would be the best course of action to take on this?

Thank You,

Richard V. Stewart

[Joy R. Butler]

Hi Richard,

I cannot provide specific legal advice through this blog. Through the blog, I provide only general information about legal issues.

One possible course of action for you would be to schedule a consultation with an attorney to review the specific circumstances of your situation and discuss whether you have any copyright, trademark, domain name, or other claims against your former client.

[corey]

If you were to purchase the domain of a famous athlete say Tim Tebow and you purchased TimTebow.com Could you develop a fan site and try to sell jerseys and other merchandise from Tim and his university or wouuld that be some sort of infringement? Also, if Tim came to you and wanted the rights to his name, would you be required to turn over the site per the Bernard Berrian case? I am confused about what constitutes cybersquatting and where exactly that line is drawn.

[Joy R. Butler]

Corey,

See my response to your comment at
http://www.businesstransactionsblog.com/2010/01/are-fan-site-operators-cybersquatters.html