Your Source for Domain Dispute News and Information November 14, 2008, Vol. 9 No. 11
 

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In This Issue

 

 

Gnarls Barkley, L.L.C. v. Pax Stereo

 

Are Ad Providers Legitimately Profiting from Typosquatting?

 

Nominet Launches New Domain Name Business Resource

 

Palin, Obama Lead in Election-related Spam

 

 

Recent Decisions

 

 

Peter Geraci v. Bruce Kane

 

Complainant, Peter Geraci, brought a UDRP claim against Respondent, Bruce Kane, for the <infotap.com> domain name.  Complainant applied for, but had not obtained a federal registration for his INFO TAPES mark.  Respondent contended he registered the disputed domain name in connection with his development of a portal search engine and at the time was unaware of Complainant’s mark.  The Panel found Respondent had not registered or used the disputed domain name in bad faith pursuant to Policy ¶ 4(b)(iii), because there was no evidence Respondent had actual or constructive notice of Complainant’s INFO TAPES mark when he registered the disputed domain name.  Because Complainant failed to satisfy Policy ¶ 4(a)(iii), the Panel refused to analyze the other elements of the Policy.  Thus, the Panel declined to transfer the disputed domain name to Complainant.  Geraci v. Kane, FA 1222742 (Nat. Arb. Forum Oct. 16, 2008).

 

Gnarls Barkley, L.L.C. v. Pax Stereo

 

Complainant, Gnarls Barkley, L.L.C., the management organization for the world famous Gnarls Barkley group, sought relief against Respondent for its registration and use of the <gnarlsbarkley.tv> domain name.  Respondent contended that it was an affiliate of Amazon.com and stated that it had registered over three-hundred artists’ names followed by the top-level domain “.tv” for the purpose of initiating an online “Internet Television Network.” Respondent conceded that it registered the artists’ names in order to attain leverage for persuading the artists to sign with their network.  The Panel found that Respondent clearly did not have Complainant’s permission to use its name in violation of Policy ¶ 4(a)(ii).  Moreover, the Panel found that Respondent used Complainant’s mark, for commercial purposes, knowing that the confusion engendered by the disputed domain name would likely benefit Respondent financially under Policy ¶ 4(b)(iv).  This resulted in the Panel ordering the transfer of the <gnarlsbarkley.tv> domain name to Complainant.  Gnarls Barkley, L.L.C. v. Pax Stereo, FA 1221421 (Nat. Arb. Forum Oct. 12, 2008). 

 

Town of Easton, Connecticut v. Lightning PC Inc.

 

Complainant, Town of Easton, Connecticut, brought this UDRP claim for the <eastonct.org> domain name. The Panel disregarded Respondent’s Response because it was filed late and Respondent “did not justify its late-filed Response.”  Complainant claimed a service mark in the EASTON CT mark, which both parties stipulated to.  Complainant even demonstrated a State of Connecticut service mark registration of the EASTONCT.ORG mark.  However, the Panel found that Complainant could not establish rights in the EASTON CT mark under Policy ¶ 4(a)(i) because geographic terms cannot be registered as a trademark or service mark when they solely relate to the areas in which they serve.  The <eastonct.org> domain name was being used only to disseminate information and services related to the Town of Easton.  For this reason, the Panel found the mark to be purely descriptive and not a trademark protected under the policy.  Therefore, the Panel declined to transfer the <eastonct.org> domain name domain name.  Town of Easton Conn. v. Lightning PC Inc., FA 1220202 (Nat. Arb. Forum, Oct. 12, 2008). 

 

NAOP LLC v. Name Administration Inc. (BVI)

 

Complainant, NAOP LLC, brought a UDRP Complaint against Respondent, Name Administration Inc., in regards to the <jumppro.com> domain name.  Complainant claimed rights in the JUMPRO mark, stating its own first use in commerce of the mark to have been April 24, 2003.  Respondent stated that it was in the business of acquiring domain names that contain common terms, such as “jump” and “pro,” and registered the disputed domain name in late 2004.  However, Complainant did not provide any evidence of its rights beyond its bald assertions. Consequently, the Panel refused to find that Complainant has established rights in the JUMPRO mark at the time that Respondent registered the disputed domain name.  Accordingly, the Panel denied the transfer of the disputed domain name.  NAOP LLC v. Name Admin. Inc. (BVI), FA 1220825 (Nat. Arb. Forum Oct. 7, 2008).

 

Private Communities Registry, Inc. v. Himalaya Rankings LLC and John Sweeney

 

Complainant, Private Communities Registry, Inc., brought a UDRP claim against Respondent, Himalaya Rankings LLC and John Sweeney, for multiple disputed domain names on August 19, 2008.  On September 5, 2008, Respondent filed a petition to cancel Complainant’s trademarks before the United States Patent and Trademark Office (“USPTO”).  Respondent then argued that the UDRP proceedings should be stayed pending the outcome of the USPTO proceedings.  The Panel referenced Rule 18(a) which gives the Panel discretion to suspend or terminate in the event that other legal proceedings are initiated during the pendency of the UDRP proceedings.  The Panel then found that Rule 18(a) does not apply because Respondent’s petition to cancel Complainant’s trademarks before the USPTO is not a legal proceeding concerning a “domain-name dispute that is the subject of the complaint.”  Thus the Panel proceeded to a decision, found Complainant had satisfied the requirements under the Policy and transferred the disputed domain names.  Private Cmtys. Registry, Inc. v. Himalaya Rankings LLC, FA 1220432 (Nat. Arb. Forum Oct. 23, 2008).

 

 

E-PRACTICE

 

Are Ad Providers Legitimately Profiting from Typosquatting?

 

            Benjamin Edelman, an assistant professor at the Harvard Business School, claims in a report that Google has been profiting from advertisements placed on websites that correspond to a typosquatted domain name.  Professor Edelman, who is also a participating attorney for the plaintiffs in a class action suit, Vulcan Golf, LLC v. Google, estimates that Google charges every advertiser between $32 and $50 a year by placing its AdSense ads on an estimated 1 million typosquatted sites.  Users who are redirected to the typosquatted sites click on these ads and generate revenue for both the domain name owner and Google.  Plaintiffs in the lawsuit include American trademark holders targeted by typosquatters.  The lawsuit names as defendants not only Google, but several other large typosquatting ad providers as well.  A larger issue is that Google offers a special version of AdSense, named “AdSense for Domains,” which specifically targets parked domain names

 

If Google loses, it could be held liable for assisting typosquatters in violating the Anticybersquatting Consumer Protection Act (“ACPA”).  In 1999, the ACPA made typosquatting illegal in the United States.  Typosquatting is a practice that takes advantage of the mistyping of a domain name into a web browser.    In a 2002 case decided under the Uniform Domain Name Dispute Resolution Process (“UDRP”), the panel further described typosquatting as “tak[ing] advantage of common typing errors in order to divert Internet users unwittingly to for profit websites unassociated with the business or entity the Internet user was attempting to reach.”  Samsung Elecs. Am., Inc. v. Photo Center, FA 122206 (Nat. Arb. Forum Oct. 17, 2002).  This use of another’s trademark is illegitimate because the typosquatter obtains a windfall by usurping the goodwill associated with the trademark.  Additionally, this practice creates the impression that the business the Internet user intended to reach is affiliated with the alternative website when in fact it is not.  The panel in Samsung accordingly found that typosquatting evidenced bad faith registration and use on the respondent’s part.  The ads on these alternative websites are provided by other companies, such as Google, and are the point of contention in the recent lawsuit filed against Google.

           

The result of this suit could have a substantial impact on the practice of typosquatting with regards to third party ad suppliers.  A decision against Google may force third-party ad suppliers to tighten up their current client roster and implement new research and clearance steps designed to limit trademark infringement into the process of obtaining new patrons.   Thus, the advertising generated monetary incentive to create a typosquatted site would likely decrease, which in turn could decrease the number of typosquatted sites.  However, Google attorney Maria Moran says, “[Google] has no way to know -- and no reason to know -- whether a given domain in the [AdSense for Domains] program could infringe a valid trademark…  And even if Google did somehow have the ability to pluck out those domains which could infringe a valid trademark, Google has no way to know who has registered the domain, be it an infringer, a licensee of the trademark owner or the trademark owner itself.”  From Google’s point of view, third-party ad suppliers are merely distributors that cannot be held responsible for knowing what is and isn’t a valid trademark (let alone who the trademark belongs to).  Forcing the obligation of requiring such knowledge onto ad suppliers like Google, Yahoo! and Sedo may be seen as burdening the inappropriate party.  

 

            Both sides present legitimate arguments.  For Edelman and the plaintiffs, “[t]he law simply says, ‘do not typo-squat.  Do not register, traffic in or use infringing domain names or confusingly similar names of trademarks."  Inducing or assisting someone in breaking the ACPA is simply not acceptable.  However, requiring what may amount to be full trademark searches before third-party ad suppliers can work with websites, which are relatively inexpensive to register, may be too overly burdensome to be realistic for the market.  Whatever the outcome of this case, it will have to balance the competing demands of both the e-commerce market and the trademark owner’s rights.

 

 

 

In The News

 

 

Cybercrimes on the Rise

Cnet.com, October 15, 2008:  The Federal Bureau of Investigation (“FBI”) reported that the threats of cybersecurity attacks are on the rise from organized crime, terrorists, and foreign governments.  The attempted attacks on U.S. networks are "increasingly sophisticated" and "the amount of information that has been stolen is significant," said Shawn Henry, assistant director of the FBI cyber division.  Henry stated that infiltrations and electronic surveillance of illegal activity are preferred over taking reactive action against cybercrime because it creates the "opportunity to ultimately dismantle the organization" at fault.  Link to Full Story

Nominet Launches New Domain Name Business Resource

DomainNews.com, October 23, 2008:  Nominet, the registry for .co.uk, in attempts to help businesses protect their domain names has launched the new resource www.keepyour.co.uk.  This resource will educate companies on the “how, why and when they need to renew their domain names.”  The reason behind the push for education is that in the next two years, over 140,000 .co.uk domains will be re-registered in less than 10 seconds after becoming available.  This highlights the imperative that businesses renew their domain names before others can take it.  The resource is mainly directed at smaller businesses that are less savvy about domain name issues.  Link to Full Story

Palin, Obama Lead in Election-related Spam

Cnet.com, October 6, 2008:  In a report published by PC Magazine, the reported amount of spam mentioning Senator Barack Obama beat out the amount of spam mentioning Senator John McCain by a 6 to 1 ratio.  Likewise, spam mentioning Governor Sarah Palin beat out mentions of Senator Joe Biden by a 6 to 1 ratio.  The report outlines that spammers like to use popular Internet searched names in order to produce spam.  Though most of the content contained in the spam messages is nonsensical, some of the messages contain current issues that are intended to entice Internet users to click on them.  Link to Full Story

Harvard Professor Sues Google

The Harvard Crimson, October 17, 2008:  Harvard Business School professor Benjamin G. Edelman has filed a class action suit against Google for supplying advertisements on “typosquatting” websites.  “Typosquatting” creates domain names that are misspellings of well-known trade names.  The website either redirects the user to the typosquatter’s webpage or the site is a landing page with multiple click-through links to competitors of the trade name or other services.  Edelman conservatively estimates that by supplying these ads to typosquatters, Google generates up to 50 million dollars of gross revenue.  Plaintiffs in the lawsuit are any American trademark holder targeted by typosquatters.  The lawsuit names as defendants not only Google but several large typosquatting companies as well.  Link to Full Story

 

 

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