| As
many have been predicting for months now,
the typosquatting issue has moved to center
stage in the domain business. Typosquatting
is the practice of registering domain names that
are misspellings of popular brand names. Those
names are then used to generate pay per click
revenue from web surfers who accidentally
mistype a domain name and end up on an
advertising page owned by the typosquatter. Practitioners
of this black art have made a lot of money over
the years, but in 2007 holding infringing names
may well earn you an expensive day in court rather
than a fat PPC check. |
|
Corporations have
started filing lawsuits left and right against companies
and individuals that they allege are guilty of trademark
infringement. Verizon has sued major portfolio
owner iREIT, Nieman Marcus, after already
suing and settling with Dotster.com, has sued Name.com
and Microsoft has filed multiple lawsuits against
alleged typosquatters. Penalties already on the books
make it possible for the companies whose marks are found
to have been violated to collect as much as $100,000
per infringement. In addition to subjecting themselves
to potentially backbreaking financial liabilities, those
who are knowingly engaged in typosquatting are
creating a lot of undeserved heat for owners of generic
domain names.
Just
this week (on Thursday, April 26), the Information
Technology Association of America (ITAA) held a
briefing in Washington, D.C. titled "Internet
Click Fraud Tricks: Domain Name Tasting, Joy Riding,
Parking, Kiting and Other Dirty Tricks". You
read that right. They erroneously labeled the perfectly legitimate
practice of parking domains as a "dirty
trick". Unfortunately, many people in the audience
and lawmakers on Capitol Hill will assume those
speaking at the briefing knew what they were talking
about and will tar generic domain owners with the same
brush they use on typosquatters.
|
|
Verizon
attorney Sarah Deutsch spoke at the
briefing and while she made several valid
points, there were also a number of obvious
factual errors in her presentation. The Internet
Commerce Association's Legal Counsel
and Washington lobbyist, Phil Corwin, was
in the audience and he challenged some of the
incorrect assertions that were being made. Ms.
Deutsch attempted to deflect Corwin's valid
observations by bringing up Verizon's lawsuit
against iREIT, who is an ICA member. How that
suit will be resolved remains to be seen, but
the filing of a lawsuit against anyone does not
make false allegations about generic domain
monetization activities, such as domain parking,
acceptable. |
Verizon
has been sued (and lost) many times because of their own
business practices. They had to pay WorldCom $169
million in 2003 and last year they were sued by
two public interest attorneys for $5 billion for
alleged wholesale violations
of privacy laws. It is a fact of business
life that many companies have been sued, lost suits and
paid the price. The fact that Verizon was one of them
does not mean they are not entitled to vigorously
protect their trademarks - they are. But they are not
entitled to make spurious claims about innocent parties
accusing them of being involved in click fraud, dirty
tricks, etc.
Our
headline mentioned "two sides" of the
typosquatting coin. While there are people in the domain
business who are rightfully being called out for
infringing activity, there are also corporations that
are making blatant attempts to steal generic
domain names through reverse hijacking attempts.
One of the most egregious attempted thefts to date just
came to light this week in a Boston
Business Journal article where it was revealed
that Italy's Pirelli Tire Company is trying to
take the clearly generic domain Zero.us away from
the legitimate owner Christian Zouzas.
| In
their WIPO complaint Pirelli, who makes a
tire called the PZero, makes this
astonishingly absurd assertion: "there
is no reasonable possibility that the domain
name was selected by (the) respondent for any
purpose other than a brazen attempt to create a
likelihood of confusion with (the) complainant's
mark as to the source, sponsorship,
affiliation, or endorsement of respondent's Web
site." Zouzas is not using the penultimate generic
term "Zero" in any way related to
tires. It seems inconceivable that the panel
will not rule in his favor and in the decision
Pirelli should clearly be labeled guilty of a
reverse hijacking attempt. |
WIPO panel should deflate
Pirelli's bogus claim to Zero.us
|
|
Now,
because Pirelli will stoop to these kinds of
tactics, shall we brand all trademark
holders as morally bankrupt entities that will
steal any asset they can as long as they can get
away with it by virtue of having a larger
bankroll than their intended victim? Of course
not. Neither should trademark owners attempt to
mislabel the entire domain investment community
(as they did this week) because of the actions
of a few. We will grant that the domain industry
has some cleaning up to do, which should include
drafting and adoption of a best practices code
of conduct that professionals can be encouraged
to adhere to. At the same time, it should be
recognized and publicized when trademark holders
reach far beyond the boundaries their marks are
restricted to as Pirelli is currently
doing. |
As
knowledge of the inherent value of good domain names
continues to increase, we will see more and more
skirmishes like this as there will always be some people
on both sides (trademark owners and domain owners)
who will act less than honorably. This industry, like
all others, is a microcosm of society at large. But the
sword cuts both ways, so it is important that the
domain community be vigilant and proactive in
encouraging policy and law makers to strike a fair
balance when dealing with these issues.
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ICANN Finally
Gets the Go Ahead to Send Registerfly to the Gallows
| On
Thursday (April 26), U.S. Federal Court Judge
Manuel J. Real issued a preliminary
injunction clearing the way for ICANN
to revoke renegade registrar Registerfly.com's
accreditation to sell domain names. Real also
ordered Registerfly to give |
| ICANN current and accurate data for all of RegisterFly’s domain names (something Registerfly failed to provide despite being directed to do so April 16 when the court issued a temporary restraining order against them).
ICANN has invited accredited registrars to submit "statements of interest" starting
Monday (April 30) to act as a transfer
provider, so Registerfly customers can gain access to their domains. The registrar handling the transfers will temporarily hold the names and help registrants transfer to any ICANN accredited registrar of their choice. Unfortunately is is believed that thousands of domains have
already been lost during the meltdown at Registerfly and that inaccurate registration records there may make it impossible to identify the owners of thousands more. |
|
This is the first time
ICANN has ever used the "nuclear option" against
a registrar but certainly none has deserved it more than
Registerfly. Their actions have made them, as well as ICANN
and eNom (for whom Registerfly was once a reseller)
targets of a class action law suit that already has registered hundreds of claimants.
Amsterdam
Ready to Welcome Domain Investors
| Domain
owners from across Europe have their sights
set on Amsterdam, Holland where DomainSponsor
will be hosting a regional Domainfest event
May 16-17 at the Amsterdam Hilton.
You can bet several people from this side of the
pond and other points around the globe will ignore
the regional label and turn up as well. That's
what happens when you have the kind of reputation
DomainSponsor has for showing people a good
time! |
|
|
The
two day event will feature multiple seminars,
networking sessions and another DomainSponsor
Party that is sure to be a memorable affair. A $395
early bird registration rate is good until May
1 when the price will go up by $100.
Full details about the conference are available on
the Domainfest.com
website. |
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