Domain Names and Trademarks: An Understanding of the...
Transcript of Domain Names and Trademarks: An Understanding of the...
Domain Names and Trademarks: An Understanding of the Conflict
26
CHAPTER 2:
DOMAIN NAMES AND
TRADEMARKS: AN
UNDERSTANDING OF THE
CONFLICT
Domain Names and Trademarks: An Understanding of the Conflict
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2.1 Introduction
The invention of computer is one of the cherished gifts of science
and technology. Wide spread use of computer led to the further
development in the field of communication through the media of Internet.
The early days of 1990s saw the use of Internet mainly for e-mails and
gathering information. But now with the emergence of electronic commerce
(e-commerce) there is a rapid growth in the commercial activities taking
place via Internet.1 Today, Internet facilitates us in all walks of our life.
From e-mails to e-governance from online banking to online dispute
resolution system, the Internet has been a platform for progress.
While the merits of Internet usage are undisputable, it is not free
from the demerits. Internet has always been found as major problem creator
for law.2 Cyberspace has been prone to a number of misuses because of its
inherent nature of being without any boundary. It has paved way for
different types of crimes and complex conflicting situations in the virtual
1 Catherine Colston and Kirsty Middleton, Modern Intellectual Property Law, Second edition,
(London: Cavendish Publishing Ltd, 2005) p. 615.
2 David Kitchin, et al., Kerly’s Law of Trademarks and Trade names, Thirteenth edition, (London:
Sweet & Maxwell, 2001) p. 737.
Domain Names and Trademarks: An Understanding of the Conflict
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world.3 Thus, the various aspects of Internet have posed challenge not only
to the business entities and public in general but also to law makers and
judges. One such challenging issue which needs immediate attention is the
domain name-trademarks conflicts.
2.2 Domain Names: Origin and Meaning
The Internet is a novel and unique medium for human
communication worldwide,4 and domain names are the sine qua non
phenomenon of cyberspace. It is an offshoot of the modern day e-
commerce. The Internet is a network of networks of computers.5 Every
computer connected to this network is given a unique electronic address,
which is called Internet Protocol (IP) address. Each identifiable location in
cyberspace has its own distinctive IP address.6 The IP addresses are
3 Paul Sugden, „Trademarks and Domain Names‟ in Jay Forder and Patrick Quirk (eds.), Electronic
Commerce and the Law, (Australia: John Wiley & Sons, 2001) pp. 199 - 225 at p. 199.
4 Peter B. Maggs, et al., Internet and Computer Law: Cases – Comments – Questions, (St. Paul,
MN: West Group, 2001) p. 457.
5 Supra note 1.
6 Rahul Matthan, The Law Relating to Computers and the Internet, (New Delhi: Butterworths,
2000) p. 372.
Domain Names and Trademarks: An Understanding of the Conflict
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numerical in nature as they are expressed by a lengthy sequence of digits.7
For ex: 0110.11.01.00. Since IP addresses are numerical in nature, they are
not catchy and hence not easy to remember ultimately resulting in mistakes
being made in typing an intended IP address. As the popularity of the
Internet increased so too the difficulty to remember these numerical
addresses became obvious.8 Thus, for the purpose of convenience, a word /
alphabet based system called as Domain Name System (DNS) was
introduced.9 In simple, a domain name is the word / alphabet based
substitute to the numeric IP addresses. These alternates to the string of
numbers are human comprehensible and memorable in nature.10
Just like the
address of a person in the real world, the domain names are the addresses of
7 Parul Kumar, „Domain Name Disputes and Cyber Squatting: Can Arbitration Suffice as a Way of
Resolution?‟, available at <www.students.indlaw.com/display.aspx?4314> Last visited, 30 July
2009.
8 Supra note 3, p. 202.
9 Michael Froomkin, „ICANN‟s “Uniform Dispute Resolution Policy” – Causes and (Partial)
Cures‟, Brooklyn Law Review, Vol. 67, No. 3, 2002, pp. 605 - 718 at p. 615.
10 Michael Chissick and Alistair Kelman, Electronic Commerce: Law and Practice, (London:
Sweet & Maxwell, 1999) p. 17.
Domain Names and Trademarks: An Understanding of the Conflict
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the respective domains in the global computer network.11
While logging
onto the Internet through a server, the server would interpret the said
domain name into its particular corresponding numerical IP address. Thus,
for example, a domain name „search.msn.co.in‟ would be interpreted by the
server as its corresponding IP address, „207.46.176.53‟. This is how the
domain name system functions.12
Domain name is distinct from website and Universal Resource
Locator (URL). Domain name, being the substitute to IP address, forms
only part of the other two. However the distinction between domain name
and website is blurring, since it doesn‟t have much practical significance,
and therefore many use these terms interchangeably. While domain name is
a part of the website, the URL is the extended path of the website,13
which
11
Pankaj Jain and Pandey Sangeet Rai, Copyright and Trademarks Laws Relating to Computers,
First edition, (Lucknow: Eastern Book Company, 2005) p. 89.
12 Sourabh Ghosh, „Domain Name Disputes and Evaluation of the ICANN‟s Uniform Domain
Name Dispute Resolution Policy‟, Journal of Intellectual Property Rights, Vol. 9, September 2004,
pp. 424 - 439 at p. 425.
13 Clacky McSnackins, „Explaining the Difference between a URL and a Domain‟, available at
<http://www.helium.com/items/235627-explaining-the-difference-between-a-url-and-a-domain>
Last visited, 05 November 2009.
Domain Names and Trademarks: An Understanding of the Conflict
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helps in locating the website.14
This can be better illustrated by the
following example.
Ex: In „http://www.un.org‟, „un.org‟ is the domain name, „www.un.org‟ is
the website, and „http://www.un.org‟ is the URL.
Initially the role of domain name, just like postal addresses, was
confined to provide address for computers on the Internet for the purpose of
communication. However the situation changed soon with the beginning of
commercial activities over the Internet. The domain name system has
played a pivotal role in the development of the modern day e-commerce.
The identification of goods and services as the goods or services provided
by respective entities is indispensible in the modern day commerce, since it
helps the buyers to go for quality goods and services. While in the
traditional commerce this function of identification is performed by the
trademarks of the business entities,15
on the Internet, the domain names
14
Suzanne James, „Explaining the Difference Between a URL and a Domain‟, available at
<http://www.helium.com/items/56913-explaining-the-difference-between-a-url-and-a-domain>
Last visited, 05 November 2009.
15 Shahid Ali Khan and Raghunath Mashelkar, Intellectual Property and Competitive Strategies in
the 21st Century, (The Netherlands: Kluwer Law International, 2004) p. 191.
Domain Names and Trademarks: An Understanding of the Conflict
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perform the same function.16
Domain names, being the simple and easily
memorable form of Internet addresses, are designed in such manner that
they function to enable the netizens to locate the specific site on the Internet
among rapidly increasing uncountable number of sites. This helps the online
customers to reach the website of the particular business entity from where
they intend to purchase.17
Thus, with the increase in online business
activities, the domain name has not only acquired the status of being the
business identifier, but also has been considered as most important by the
traders, since it is the name that attracts the customers in the modern day
business.18
2.3 An Insight into Domain Name System
The domain name system consists of two sets of domains. The first
level set of domains is called as top level domains (TLDs). They can be
seen in the right most part of the domain names. The TLDs can be further
divided into generic top level domains (gTLDs), and country code top level
domains (ccTLDs). While the gTLDs are intended to provide information
16
Richard Stim, Trademark Law, (Canada: West Legal Studies, 2000) p. 99.
17 Anish Dayal, „Law and Liability on the Internet‟ in Kamlesh N. Agarwala and Murali D. Tiwari
(eds.), IT and Indian Legal System, (New Delhi: MacMillan, 2002) pp. 52 - 71 at p. 56.
18 Supra note 3.
Domain Names and Trademarks: An Understanding of the Conflict
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about the type or nature of the organizations, ccTLDs generally give
information about the location of organizations. Traditionally, there were
seven gTLDs, namely .com, .org, .net, .edu, .int, .gov and .mil.19
After 2000,
some new gTLDs are operated due to the efforts of the Internet Corporation
for Assigned Names and Numbers (ICANN). These new gTLDs include
.biz, .info, .pro, .(name), .museum, .coop, and .aero.20
The three gTLDs, .com, org, and .net, have no restrictions on the
persons / entities who may register names in them,21
and these three gTLDs
are available for registration on a first come first served basis.22
Since the
19
„.com‟ refers to commercial organizations, „.org‟ refers to non-profit organization, „.net‟ refers to
network service providers, „.edu‟ refers to educational institutions, „.int‟ refers to international
organizations, „.gov‟ refers to government entities, and „.mil‟ refers to military and defence
entities. Supra note 3, p. 202.
20 „.biz‟ refers to businesses, „.info‟ refers to unrestricted general use, „.pro‟ refers to professionals,
„.(name)‟ is for individuals, „.museum‟ refers to museums, „.coop‟ refers to cooperatives and
„.aero‟ refers to air transport industries. Ibid, p. 203.
21 Ken Chia, „E-World‟, in Stephen York and Ken Chia (eds.), E-Commerce – A Guide to the Law
of Electronic Business, (London: Butterworths, 1999) pp. 1 - 10 at p. 1.
22 Laurence R. Helfer, „International Dispute Settlement at the Trademark – Domain Name
Interface‟, Pepperdine Law Review, Vol. 29, 2001, pp. 87 - 99 at p. 90.
Domain Names and Trademarks: An Understanding of the Conflict
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gTLDs indicate the global presence of the holder, huge money is spent in
procuring the appropriate gTLD.23
The ccTLDs bear a two letter country code, which helps in
identifying the country of the domain name holder. To quote some
examples, .uk indicates that the domain name is United Kingdom (UK)
based, .fr indicates France based, .ca means Canada based and .in stands for
India based domain names. By virtue of this, each country has distinct
TLDs.24
Each ccTLD can have a second level. For example, in India there
can be .co.in (for company), .ltd.in (for private limited company), .edu.in
(educational institutions) etc. Though the individuals are free to register
their domain names under any gTLD or ccTLD, no one gets any kind of
right over either of them.25
Both, being generic in nature, are open to
everybody for registration.
23
Supra note 10, p. 18.
24 Alwyn Didar Singh, E-Commerce in India: Assessments and Strategies for the Developing
World, (New Delhi: Lexis Nexis Butterworths, 2008) p. 86.
25 Supra note 16, p. 100.
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For registering a ccTLD, each country has an allocating office.26
For
example, UK based domain names are registered at Nominet UK Limited.
In United States (US), the US National Standards Institute (NSI) has the
authority to allocate ccTLDs. In India, .IN Registry, which operates under
the authority of National Internet Exchange of India (NIXI), performs the
function of allocation.27
The registrations of ccTLDs are subject to
restrictions in various countries. While some countries have restrictions on
second level structure of ccTLDs and on number of registrations per person
or firm,28
most of the countries require the registrants to be domiciled in that
country.29
However, the recent trend in countries like India and UK shows
that the domicile requirement is not necessary for registration of their
ccTLDs. In effect, now anyone can register the .in and .uk ccTLDs. The
reason for such open registration is to promote the growth of respective
26
These registries have got authority from ICANN. They also operate on the first-come first-serve
basis. Anjan Sen, „Intellectual Property Rights in Internet Environment‟, Indian Juridical Review,
Vol. 1, 2005, pp. 7 - 18 at p. 11.
27 <http://www.findouter.com/Asia/India/Computers_and_Internet/Domain_Registration> Last
visited, 21 January 2009.
28 Supra note 9, p. 619.
29 United States, Canada and Australia are few examples of states adopting restrictive approach.
Domain Names and Trademarks: An Understanding of the Conflict
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state‟s Internet world.30
Unfortunately, this development has served as a
death blow to the basic purpose of ccTLDs, which is the identification of
domain name holders‟ state.
The second sets of domains are referred to as sub-domains. In the
domain name, the sub-domains exist in the left of TLD. The sub-domain
can further be divided into several levels starting with the second level
domain. There can be third level, fourth level, fifth level and so on, with
virtually no limitation. The business entities usually prefer to have their
trademark as their second level domain, in order to establish their identity
over the Internet. The remaining sub-domains would usually depict the
subdivisions in the second level domains.
Following illustration depicts the different levels of domains found in a
domain name.
www.library.nls.uk.in
(4) (3) (2) (1)
30
It is found that .co.uk and .org.uk are the most commonly registered domain names at present.
Simmons and Simmons, E-Commerce Law – Doing Business Online, (Bembridge: Palladian Law
Publishing Ltd., 2001) p. 74.
Domain Names and Trademarks: An Understanding of the Conflict
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(1) Generic top level domain (gTLD)
(2) Country code top level domain (ccTLD)
(3) Second level domain
(4) Third level domain
The domain name system is currently managed and administered by
Internet Corporation for Assigned Names and Numbers (ICANN).31
The
ICANN is a nonprofit public-benefit nongovernmental organization with an
international board of directors, working from 1999.32
It administers the
root domain and manages TLDs with the help of hundreds of domain name
registries spread throughout the world.33
Each of these registries is certified
by and subject to the direct supervision of ICANN.34
The ICANN also sets
standards for the performance of registration functions, vetting applicants in
relation to those standards and for managing accreditation agreements.
31
Alan Davidson, The Law of Electronic Commerce, (Australia: Cambridge University Press,
2009) p. 127.
32 The Network Solutions Inc (NSI) was performing the function of registration and administration
of domain names from 1992 to 1999, until ICANN assumed its functions. Gerald R. Ferrera, et al.,
Cyber Law - Text and Cases, Second edition, (Ohio: West Legal Studies in Business, 2004) pp. 52
& 53.
33 See <http://www.internic.net/alpha.html> Last visited, 02 March 2010.
34 <http://www.igoldrush.com/registrars.htm> Last visited, 02 March 2010.
Domain Names and Trademarks: An Understanding of the Conflict
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While gTLDs are governed directly under ICANN and subject to the terms
and conditions defined by ICANN with the cooperation of gTLD
registries,35
ccTLDs are governed by the terms and conditions of respective
state governments. For the purpose of ccTLD allocation, each country has
established a registry.36
The registration of domain name takes place online. There are many
open access websites providing information regarding available domain
names, national registration requirements and other incidental matters. Thus
any intended registrant can check these details free of cost. One of the
prominent directories, which provides information about the availability of
domain names for registration is the WHOIS directory.37
Once a domain
name is registered, it takes up to 72 hours to become accessible on the
Internet. This is the reasonable time period required for spreading the
35
For registering different gTLDs, different registries are setup. For examples, the .biz domain is
registered by Neulevel, the .com and .net domains are operated by Verisign Global Registry
Services, the .info domain is operated by Afilias Limited, the .name registry is operated by Global
Name Registry, the .org domain is operated by Public Interest Registry and the .pro domain is
operated by RegistryPro.
36 <http://en.wikipedia.org/wiki/Domain_name> Last visited, 05 November 2009.
37 See <http://www.networksolutions.com/whois/index.jsp> Last visited, 22 February 2010.
Domain Names and Trademarks: An Understanding of the Conflict
39
information about the new domain name to thousands of name servers all
over the Internet.
Since the domain names are unique, and therefore no two persons
can register the same domain name,38
each competing registrar of domain
name maintains universal database of unavailable domain names.39
This
prevents the registration of already existing domain name and thereby
avoids chaos in the virtual world. An important aspect of the domain name
registration is that the registration is valid for specified period of time,
extending from one to ten years, after which the domain name holder must
renew it periodically.40
The failure to renew results in the cancellation of
registration of domain name, and thereby becomes available for fresh
registration by anybody.
38
See Sunando Mukherjee, „Passing off in Internet Domain Names - A Legal Analysis‟, Journal of
Intellectual Property Rights, Vol. 9, March 2004, pp. 136 - 147 at p. 137.
39 <http://www.ez-domainnameregistration.com/detailed_process.htm> Last visited, 04 March
2010.
40 Different registries offer different registration periods subject to different registration rates. See
<http://www.thesitewizard.com/archive/registerdomain.shtml> Last visited, 02 March 2010.
Domain Names and Trademarks: An Understanding of the Conflict
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2.4 Domain Name: A Virtual Property?
With the tremendous expansion in the registration of domain names,
an obvious question before the legal fraternity is regarding the property
underpinnings of the domain names. In other words, whether the domain
names qualify to be virtual property of the holders? Since the registration of
a domain name gives registrant certain rights over it, though can be subject
to challenge before national courts or UDRP panels for different reasons,
necessarily we need to consider whether such rights are akin to rights that
one enjoy over one‟s property?
As rightly pointed out by one of the profound scholars of
Jurisprudence, Julius Stone, the right to property exists due to the
recognition given in the civilized society for men who have discovered or
created by their own labour, physical or mental, something that is beneficial
to them under the existing social and economic order. The need to control
such things forms the basis of recognition of such rights.41
The legal scholars are divided in their opinion regarding the status of
domain names as virtual property. The scholars, who are of the view that
41
Julius Stone, The Province and Function of Law, (Delhi: Universal Law Publishing Co. Pvt.
Ltd., 2000) p. 529.
Domain Names and Trademarks: An Understanding of the Conflict
41
domain names are not virtual property, consider it as just a licensed right to
use the name for a particular purpose, that is, to establish the presence of the
domain name holder over the Internet.42
According to them, in order to
qualify as a property in the virtual world, the things need to have value,
especially economic, in the virtual world.43
Domain names though are
subject to sale, their sales are not recognized under law, and therefore they
are devoid of economic value. Thus, the rights that emanate from domain
names are contractual rights and not property rights.
In line with this argument, the Virginian Supreme Court in Network
Solutions, Inc. v. Umbro International, Inc.44
held that “a domain name
registrant acquires the contractual right to use a unique domain name for a
specified period of time… but this contractual right is inextricably bound to
the domain name services that Network Solutions provides.” Therefore,
Umbro concluded that domain name registration agreement is a contract for
42
See Supra note 3, p. 208.
43 Peter Brown and Richard Raysman, „Property Rights in Cyber Games and Other Novel Legal
Issues in Virtual Property‟, Indian Journal of Law and Technology, Vol. 2, 2006, pp. 87 - 105 at
pp. 89 & 90.
44 259 Va. 759, 770 (Va. 2000).
Domain Names and Trademarks: An Understanding of the Conflict
42
services rather than property. Similar sort of conclusion is also reached by
other courts.45
The supporters of virtual property status of domain names might tend
to derive support from Roscoe Pound‟s statement that the Proculians had the
practice of awarding the new thing to its maker because prior to his labor
that thing had not existed.46
While applying this logic to domain names, the
scholars advocate that the registrant applies his intelligence and skill to
select such name which helps for his identification and fulfillment of other
purposes over the Internet. So he has to be given some sort of property
rights over his creation. Hence, domain names, URL, e-mail accounts etc.
are classified as virtual property.47
The scholars also argue that the concept of property and contract
have undergone revolutionary changes.48
In the age of digital information,
45
See New York State Trial Court decision in Zurakov v. Register.com No. 600703/01 (N.Y. Sup.
Ct. July 25, 2001).
46 Roscoe Pound, An Introduction to the Philosophy of Law, Second Indian Reprint, (Delhi:
Universal Law Publishing Co. Pvt. Ltd, 1998) p. 110.
47 Joshua A. T. Fairfield, „Virtual Property‟, Boston University Law Review, Vol. 85, 2005, pp.
1047 - 1102 at p. 1055.
48 Jacqueline Lipton, „A Revised „Property‟ Concept for the New Millennium?‟, International
Journal of Law and Information Technology, Vol. 7, No. 2, 1999, pp. 171 - 190 at p. 171.
Domain Names and Trademarks: An Understanding of the Conflict
43
the value has shifted from goods and real estate to control of information
and other intangibles. Given the importance of intangibles like domain
names, the holder of them asserts his right against the whole world.
Therefore, the supporters argue that if the right can be asserted against third
parties not in privity with the holder of that right, it should be characterized
as property right, even if the contractual rights are associated with it.49
The debate over the property underpinnings of domain names seems
to be unending. In this regard, an important aspect for our consideration is
the ingredients of property rights. When we say of property right, there are
three rights associated with it. They are, right to quite possession, right to
use and right to dispose of the property.50
The first two ingredients, right to
quite possession and right to use, can be seen in the domain name, acquired
in accordance with the law. However, they are available only on temporary
basis, since the domain name registrations are subject to periodic renewals.
Most importantly, the last ingredient of right to property, right to disposal,
49
Anupam Chander, „The New, New Property‟, Texas Law Review, Vol. 81, No. 3, February 2003,
pp. 715 - 797 at p. 774.
50 Milirrpum v. Nabalco Pty Ltd. [1971] ALR 65.
Domain Names and Trademarks: An Understanding of the Conflict
44
would always be missing in a domain name.51
This is due to the fact that the
domain names cannot be subject to sale under law, though in practice there
are many instances of sale. This continuing sale of domain names under the
existing flourishing secondary domain name market has given a false
impression that the domain names are freely transferable.52
Most of the
scholars also bank on this false impression to accord property status to
domain names.53
These factors clearly show that conferment of any kind of
property status to domain name would be a myth.
The support to this view can be seen in both international and
national levels. In the international level, when someone registers a domain
name, he agrees to be bound by a “service agreement” with the registrar
rather than a “purchase agreement”. Moreover, the service agreement uses
the term “owner” to describe the holder of trademark and “registrant” to
51
See generally M. Scott Boone, „Virtual Property and Personhood‟, Santa Clara Computer &
High Technology Law Journal, Vol. 24, 2008, pp. 715 - 747 at pp. 741 - 744.
52 <http://www.domainnamenews.com/legal-issues/domain-names-property-subject-creditor-
claims-bosh-zavala/6607> Last visited, 03 March 2010.
53 See Supra note 49, p. 777.
Domain Names and Trademarks: An Understanding of the Conflict
45
refer to the party registering a domain name.54
This distinction clearly
indicates the intention of pioneers of legal regime governing domain names
to keep the domain name outside the realm of property.55
In the national
level, Canadian position on the debate over property status of domain names
seems to be relevant. In Canada, while registering a .ca domain name, the
registrant must agree, as a contractual condition of registration, that he
acquires no property right in the domain name. Similarly, in UK, the .uk
domain name registrant is not considered as the owner, thereby the domain
names exist devoid of property rights.56
Thus, the Canadian and UK
positions assert that the domain name is not a property.57
The conferment of property status to domain names would also result
in practical difficulties. In a case where the domain name is registered by
54
David Nelmark, „Virtual Property: The Challenges of Regulating Intangible, Exclusionary
Property Interests Such as Domain Names‟, Northwestern Journal of Technology and Intellectual
Property, Vol. 3, No. 1, Fall 2004, pp. 1 - 23 at p. 7.
55 See Supra note 49, p. 771.
56 Caroline Wilson, „Domain Names and Trademarks: An Uncomfortable Interrelationship‟ in
Lilian Edwards and Charlotte Waelde (ed.s), Law and the Internet, Third edition, (Portland: Hart
Publishing, 2009) pp. 311 - 333 at p. 323.
57 See generally Sheldon Burshtein, „Is a Domain Name Property?‟, Journal of Intellectual
Property Law and Practice, Vol. 1, No. 1, 2005, pp. 59 - 63.
Domain Names and Trademarks: An Understanding of the Conflict
46
borrowing from an intellectual property right, the conflict arises between the
rights conferred by domain name and the intellectual property right in
question. If the domain names are accepted as a kind of property, the
unavoidable dilemma would be regarding the priority of conflicting
property rights.58
In simple words, whether the domain name as a property
should give way to intellectual property right in question or intellectual
property right should give way to domain name? Therefore, the conferment
of property status to domain names is not only theoretically meaningless,
but also practically unadvisable.
2.5 Trademarks: Nature of Protection
The trademarks are one of the well-recognized types of intellectual
property rights. Trademark can be defined as any word, name, slogan,
design, symbol or sign, which distinguishes particular goods or services of
one undertaking from the goods or services of other undertakings.59
Section
2 (zb) of the Indian Trade Marks Act 1999 defines trademark as a mark
capable of being represented graphically and which is capable of
distinguishing the goods or services of one person from those of others and
58
Supra note 54, p. 5.
59 David Kitchin, et. al, Kerly’s Law of Trademarks and Trade Names, Fourteenth edition,
(London: Sweet & Maxwell, 2005) p. 10.
Domain Names and Trademarks: An Understanding of the Conflict
47
may include shape of goods, their packaging and combination of colours
and includes certification trademark60
and collective mark.61
The major function of trademark is to identify the source of origin of
different products or services.62
In other words, trademark helps the
consumers to trace the manufacturer of a product or the provider of a
service required to them.63
Thus, the trademarks act as silent salesmen
through which direct contact is developed between the consumer and the
60
Certification trademark is a mark capable of distinguishing the goods or services in connection
with which it is used in the course of trade which are certified by the proprietor of the mark in
respect of origin, material, mode of manufacture of goods or performance of services, quality,
accuracy or other characteristics from goods or services not so certified and registrable as such
under Chapter IX in respect of those goods or services in the name, as proprietor of the
certification trademark, of that person. (Sec. 2 (e) of the Indian Trade Marks Act)
61 Collective mark is a trademark distinguishing the goods or services of members of an association
of persons (not being a partnership within the meaning of the Indian Partnership Act 1932) which
is the proprietor of the mark from those of others. (Sec. 2 (g) of the Trade Marks Act)
62 See Sharon K. Black, Telecommunications Law in the Internet Age, (San Francisco: Morgan
Kaufmann, 2002) p. 407.
63 H. Brian Holland, „Tempest in a Teapot or Tidal Wave? Cybersquatting Rights and Remedies
Run Amok‟, Journal of Technology Law and Policy, Vol. 10, 2005, pp. 301 - 351 at p. 338.
Domain Names and Trademarks: An Understanding of the Conflict
48
trademark owner.64
The trademark right includes an exclusive right to use a
particular mark to build goodwill and reputation of an enterprise. This
exclusive right prevents others from misleading consumers by creating a
false impression of any kind of association with the enterprise owning a
particular trademark.65
The nature of trademark is such that its value
increases with the passing of years, consequent to increasing popularity.
From a commercial point of view, owing to the functions performed
by trademarks, every entity wants its trademark to be protected just like any
other tangible assets of the said entity.66
The laws relating to the protection
of trademarks are generally country or region specific.67
Some countries
require registration of trademark to ensure its protection. But in other
countries, especially common law countries, though registration is a proof
of validity of trademark, the laws recognize the goodwill built up in the
64
T. G. Agitha, „Trademark Dilution: Indian Approach‟, Journal of Indian Law Institute, July -
September 2008, Vol. 50, No. 3, pp. 339 - 366 at p. 341.
65 Vinod Sople, Managing Intellectual Property - The Strategic Imperative, (New Delhi: Prentice
Hall of India, 2006) p. 229.
66 Supra note 6, p. 350.
67 Graeme B. Dinwoodie, „(National) Trademark Laws and the (Non National) Domain Name
System‟, David Vaver (ed.), Intellectual Property Rights - Critical Concepts in Law, Vol. IV,
(London: Routledge, 2006) pp. 143 - 165 at p. 145.
Domain Names and Trademarks: An Understanding of the Conflict
49
name. Thus, the fact that a particular trade name is publicly acknowledged
as being associated with a particular product or service is sufficient enough
to obtain some forms of protection for that trade name in those countries.
The laws in those countries recognize the action on the basis of common
law principle of passing off, provided the trademark, said to be infringed, is
well known and has established a reputation within the country.68
Section
27(2) of the Indian Trade Marks Act 1999 is an example of providing such
kind of protection to unregistered trademarks.69
The registration of trademark guarantees protection to the trademark
holder within the territorial jurisdiction of the country where he is
registering the trademark.70
In case the commercial activities of the
trademark owner extend to other countries, he has to register his trademark
separately in those countries to extend the shield of protection for his
68
Supra note 6, p. 368.
69 Sec. 27: No action for infringement of unregistered trademark -
(1) No person shall be entitled to institute any proceeding to prevent, or to recover
damages for the infringement of an unregistered trademark.
(2) Nothing in this Act shall be deemed to affect rights of action against any person for
passing off goods or services as the goods of another person or as services provided
by another person, or the remedies in respect thereof.
70 Supra note 62.
Domain Names and Trademarks: An Understanding of the Conflict
50
trademark, unless the passing off action is recognized by the country in
question. The registration of trademark is always beneficial, even in the
states that recognize passing off action. This is because an action for passing
off requires the trademark holder to establish the fact that the trademark in
question is well known and has obtained a reputation, which is not
necessary in case of a registered trademark. Moreover, the legal regime
relating to registered trademarks are comparatively more uniform across the
countries.
What is key in the trademark infringement case is the likelihood of
consumer confusion.71
Only in the cases where the trademark is used in an
offending way by third parties to create consumer confusion, the trademark
holder gets right of action. Therefore, there is sufficient scope for more than
one person owning the same trademark. This can happen either in the cases
where the trademark owners are located in different parts of the world or in
the cases where they are dealing with different goods or services, since there
can be little scope for consumer confusion.
71
Thomas C. Folsom, „Space Pirates, Hitchhikers, Guides, and the Public Interest:
Transformational Trademark Law in Cyberspace‟, Rutgers Law Review, Summer 2008.
<www.westlaw.com>
Domain Names and Trademarks: An Understanding of the Conflict
51
2.6 Trademark-Domain Name Interrelations
In the modern era of electronic commerce and other online business
ventures, every business enterprise is concerned about establishing its
identity over the Internet. This function of identifying the business
enterprise over the Internet is performed by domain names.72
Picking a
suitable domain name is not an easy task. A number of factors need to be
taken into consideration in doing so. One of the major factors is to include
the trademark within the domain name.73
This is because the inclusion of
trademark, which is well established to identify the enterprise in the real
world, would foster the establishment of identity of the said enterprise over
the Internet. The consumers, who are generally unaware of specific domain
name of an enterprise, can easily locate the enterprise by typing its well-
known trademark. Thus, the trademarks, which perform the function of
72
Thus the domain names are not only the gateway for information or for personal enjoyment but
also are having increased commercial uses. Ibid.
73 Rodney D. Ryder, Guide to Cyber Laws, Third edition, (New Delhi: Wadhwa and Company,
2007) p. 241.
Domain Names and Trademarks: An Understanding of the Conflict
52
identification of enterprises in the real world, also can perform similar
function in the virtual world in the form of domain names.74
The interrelation between trademarks and domain names can also be
seen in the domain name disputes. In the cases where the domain name is
related to a trademark, the trademark right is a formal and substantial
prerequisite for the successful domain name dispute. Today, the disputes
relating to domain names that infringe the trademarks stand as the most
common form of domain name disputes.75
Therefore, every trademark
owner is burdened with the duty of protecting his trademark over the
Internet before it is late.
Though there are lot of similarities between the functions of
trademarks and domain names, they are neither theoretically nor practically
identical. Apart from the difference in their area of operation, one operating
74
Thus we can find some resemblances between trademarks and domain names. Michael Handler,
„Internet Domain Names and Trade Mark Law‟, Digital Technology Law Journal, Vol. 1, No. 1,
1999, available at <http://www.austlii.edu.au/au/journals/DTLJ/1999/4.html> Last visited, 27
August 2009.
75 Mladen Vukmir, „Intellectual property Rights‟, in H. Vanhees (ed.), International Encyclopedia
of Laws - Intellectual Property, Vol. 2, (New Delhi: Wolters Kluwer (India) Pvt. Ltd, 2006) pp. 1 -
402 at p. 291.
Domain Names and Trademarks: An Understanding of the Conflict
53
in the real world and the other in the virtual world, four striking differences
can be pointed out. Firstly, while the registration of trademark is national in
nature and effect, the registration of domain name is global in nature and
effect.76
Secondly, there is a difference in the purpose of registration. On the
one hand registration of trademark is done for protecting the mark from
being used by others in the course of trade and on the other hand the domain
name registration is for commercial or non-commercial use over the
Internet. Thirdly, the trademarks are registered in relation to specific
categories of goods or services. However, such kind of link with the goods
or services is absent in the registration of domain names. Finally, same
trademark can be registered by different persons in different parts of the
world or in relation to different goods or services. But there cannot be more
than one registrant of same domain name, since they are global in
operation.77
76
Michael Blakeney and Fiona Macmillan, „Regulating Speech on the Internet‟, Digital
Technology Law Journal, Vol. 1, No. 1, 1999, available at
<http://www.austlii.edu.au/au/journals/DTLJ/1999/6.html> Last visited, 02 Septemeber 2009.
77 Graham J. H. Smith, Internet Law and Regulation, Fourth edition, (London: Sweet & Maxwell,
2007) p. 160.
Domain Names and Trademarks: An Understanding of the Conflict
54
2.7 Conflicts between Trademarks and Domain Names
Due to the well-established link between the domain names and
trademarks, every entrepreneur is keen to get his trademark registered as
domain name. For this purpose, huge amount of money and time is invested
by them in the modern era of electronic commerce. The involvement of
large sum of money has paved the way for taking undue advantage by third
parties, and resultantly, conflicts over the registration of domain names. The
tremendous increase in the domain name disputes78
currently poses a
serious challenge to the ICANN and national legal systems.79
As already pointed out, the most common form of domain name
dispute is the conflict between the rights of domain name holder and the
trademark holder. Conflict between the two arises because of several
reasons. Firstly, change in the role of the domain names can be pointed out
as a fundamental reason. Though the original role of domain name is to
78
It did not take much time for the rapid proliferation of trademark controversies over domain
names in the present era of technology. Rosanne T. Mitchell, „Resolving Domain Name Trademark
Disputes: A New System of Alternative Dispute Resolution is Needed in Cyberspace‟, Ohio State
Journal on Dispute Resolution, Vol. 14, 1998, pp. 157 - 192 at p. 157.
79 Ian Jay Kaufman, „The Domain Name System - Dispute Resolution and the Nice Classification
System‟, International Business Lawyer, Vol. 28, January 2000, pp. 35 - 41 at p. 35.
Domain Names and Trademarks: An Understanding of the Conflict
55
provide an address for different sites on the Internet, today in the modern
era electronic commerce, it has evolved from being a mere means of
communication to a mode wherein commercial activities take place.80
Thus
domain names have become part of corporate and individual identities over
the Internet.81
This somewhat independent status of domain name often
comes in conflict with trademarks.
Secondly, the trademarks and domain names operate in two different
fields and two different levels. While the trademarks operate in the real
world, domain names are confined to virtual world. Added to this,
trademarks are confined to national level / multinational level and domain
names are international in nature. Due to this reason, there can be more than
one holder of same trademark but there can‟t be more than one holder of
same domain name.82
This difference in the fields and levels of operation
has resulted in lot of conflicts, since at some point of time they overlap with
each other in determining the interests of stakeholders. Consequent to this
overlap, one right holder would try to justify his right under one field / level
80
Satyam Infoway Ltd v. Sifynet Solutions Pvt. Ltd (2004) 6 SCC 145.
81 Supra note 62, p. 408.
82 Roger LeRoy Miller and Gaylord A. Jentz, Management & E-Commerce - The Online Legal
Environment, (Australia: West Thomson Learning, 2002) p. 62.
Domain Names and Trademarks: An Understanding of the Conflict
56
and the other right holder would try to justify his right under other field /
level, resulting in deadlock.
Thirdly, absence of connection between the systems of registration of
trademarks and domain names constitutes a major reason for conflict. While
the trademark registrations take place in the national level, domain name
registrations take place in the international level. Since there is no
interconnection, while granting a domain name, the registrar has no
obligation to check whether it conflicts with trademark rights.83
Neither he
interferes with the number of domain names one intends to register. His
right to reject the domain name registration is confined only to the cases
where same domain name already exists.84
Added to this, unlike trademark
registration, there is no requirement of prior notice for domain name
83
See Lockheed Martin Corp v. Network Solutions Inc. 985 F. Supp. 949 C.D. Cal., 1997.
84 Brian Young, „World Wrestling Federation Entertainment Inc v. Michael Bosman: ICANN‟s
Dispute Resolution Policy at Work‟, North Carolina Journal of Law & Technology, Vol. 1, 2002,
pp. 65 - 100 at p. 74.
Domain Names and Trademarks: An Understanding of the Conflict
57
registration.85
These factors always give sufficient scope for registering a
trademark of someone as domain name by someone else.
Lastly and more importantly, the principle of first-come first-served
employed in domain name registration has served as the hub of conflict. The
first-come first-served makes it mandatory for the trademark holder to go
for the registration of his trademark as domain name at the earliest point of
time, so as to prevent others from registering it. In this competition for
registration, there is a possibility of a genuine right holder losing the domain
name to a third party, and thereby resulting in the conflict. The first-come
first served is not only fatal to the trademark owners but also
disadvantageous to the online consumers of product or services, since they
might end up in landing to a website that they never intended.
There are four major situations in which domain names come in
conflict with trademarks. They are existence of same trademarks,
cybersquatting, registration of domain name similar to well-known
trademark or domain name (typosquatting) and reverse domain name
hijacking.
85
Faye Fangfei Wang, „Domain Names Management and Dispute Resolutions: A Comparative
Legal Study in the UK, US and China‟, Icfai Journal of Cyber Law, Vol. VII, No. 3, August 2008,
pp. 8 - 24 at p. 11.
Domain Names and Trademarks: An Understanding of the Conflict
58
2.7.1 Same Trademarks Cases
These are the genuine cases of conflicts between trademarks and
domain names because of their fundamental characteristics. The differences
in the areas and levels of operation of trademarks and domain names have
been a great challenge to law. Due to the national character, the trademarks
can be owned by two or more persons. It may be in different countries on
the same goods or services, or in relation to different goods or services in
the same or different country.86
Since all the owners of same trademark
want to promote their business online, they all would be interested to get
their trademark registered as domain name. Unfortunately, this cannot
happen since the domain names are unique and can only be held by one
person.87
The first in time would be able to register the trademark as domain
name, depriving all other holders of trademark from enjoying similar form
of privilege. This ultimately results in disputes between the owners of same
trademark.88
86
Supra note 77, pp. 144 & 145.
87 Though it is possible to register the same second level domain in different TLDs, for example
wipo.com, wipo.org, wipo.edu, wipo.net etc, it would not be of any use to the business
entrepreneurs since they want their domain name essentially with .com. See Supra note 67.
88 Supra note 21, p. 5.
Domain Names and Trademarks: An Understanding of the Conflict
59
What is peculiar to this kind of cases is that the parties in conflict are
all endowed with legal basis for their claim.89
It is this legal basis for the
claims, which pose difficulty in the legal determination of the case.
Consequently, neither national laws nor international dispute settlement
mechanism (UDRP)90
could effectively deal with same trademark cases.
One of the classic examples of difficulty encountered by the adjudicating
bodies in such kind of cases is Prince PLC v. Prince Sports Group Inc.91
In Prince, the plaintiff was a British computer services company and
the defendant was the manufacturer of tennis racquets in US. The plaintiff
had registration of prince.com as a domain name and consequently the
defendant could not register the same. However defendant was the
registered holder of trademark „prince‟ in both US and UK. Therefore, he
wrote a letter to the plaintiff contending that the use of the domain name
„prince.com‟ was an act of infringement, unfair competition and a dilution
of his federal trademark. The defendant also threatened legal action unless
89
Usually, in a dispute, one of the parties would be having legal basis for the claim and the other
would not be having. Consequently, the adjudicating body can easily uphold the claim of the party
having legal basis for his claim.
90 Discussed in Chapter 4.
91 [1998] FSR 21.
Domain Names and Trademarks: An Understanding of the Conflict
60
the plaintiff transfer the domain name to him and agreed not to use the name
„prince‟ in future.
Upon failure to get back the domain name, the defendant initiated a
domain name dispute with Network Solutions Inc (NSI). The NSI directed
the plaintiff either to relinquish domain name within 30 days or to produce a
valid pre-existing trademark registration within the stipulated period.
Alternatively, the plaintiff was also given an option of taking legal action in
any US court. It was also mentioned in the direction that the failure of
plaintiff to comply with any of the above-mentioned alternative would
result in putting the domain name on hold by NSI.
Instead of complying with the directions of NSI, Price PLC filed a
civil action in UK court. Plaintiff sought for declarative, injunctive and
compensatory reliefs. To be precise, declaration to the effect that UK
trademark of defendant is not infringed, injunction against unjustifiable
threat of proceedings and compensation for damage suffered. Despite the
plaintiff‟s failure to comply with the directions of NSI, the domain name
was not put on hold but was deposited with the UK court for disposition.92
92
The request of defendant to put the domain name on hold was turned down by NSI.
Domain Names and Trademarks: An Understanding of the Conflict
61
Quite interestingly, Prince Sports Group Inc. sued both Prince PLC
and NSI in a US District Court. These concurrent proceedings in the UK
and US courts resulted in a complete chaotic situation. The UK Court found
that the threat of proceedings by Prince Sports Group Inc. was not
justifiable, and therefore injunction was granted against it. However the UK
Court was skeptical about granting the other two remedies. On the one
hand, it did not award damages because Prince PLC could not establish that
damage has been suffered. On the other hand, the Court refused to grant
declaratory relief, in order to prevent the possibility of any contradictory
decision by the US Court.93
The US Court was also not sure of the proper way to deal with the
case, which ultimately resulted in the withdrawal of action by Price Sports
Group Inc. Thus, neither UK Court nor US Court could clarify the law on
the point, though in practice Prince PLC continued to use the price.com
domain name. Highlighting the problem of same trademarks, Sally Tate the
93
In this regard, Mr. Justice Neuberger observed that “It is obviously quite possible for an English
court to reach the conclusion that the principal letter, in so far as it constitutes a threat of
infringement proceedings in relation to the defendant‟s UK-registered trade mark is an unjustified
threat, and for a US court to reach the contrary conclusion so far as the defendant‟s US-registered
trade marks are concerned”.
Domain Names and Trademarks: An Understanding of the Conflict
62
Joint Managing Director of Prince PLC, commented “In the real world we
could have co-existed with Prince Sports Group in trademark classes…
How could an IT business in the UK be confused with a tennis racket
manufacturer in the US? Only in cyberspace”.94
Thus, the same trademark cases are of great challenge to law and
adjudicators. This seems to be the simple result of tremendous pace in the
advancement of technology.95
Since it is very difficult for the legal scholars
to predict what novel technology their sibling scientists are coming up with,
legal regime governing these new issues is at limbo. Due to this factor, none
of the state legislation deals with this kind of conflicts. Even the UDRP,
which provides for international domain name dispute resolution
mechanism, fails to address the cases of same trademarks. Thus, the
94
Sally Tate, „The Domain Name Iceberg and Avoidable Collisions‟ Computers and Law Vol. 8,
No. 5, 1997. Available at <http://www.scl.org>.
95 In the field of information technology, it is said that the equation of virtual world with the
physical world is three months = one year. Anuradha Nayak and Manish Lakhawat,
„Cybersquatting and Trademark Infringement‟, Icfai University Journal of Cyber Law, Vol. VII,
No. 3, August 2008, pp. 54 - 60 at p. 59.
Domain Names and Trademarks: An Understanding of the Conflict
63
researcher strongly feels that there is a need for finding a suitable alternative
mechanism/s, especially to settle this kind of conflicts.96
2.7.2 Cybersquatting
One of the most common categories of mischief in the field of
domain names is cybersquatting. Squatting, in the literal sense, is settling on
another‟s land without title and authority.97
Thus, the act of cybersquatting
means registering a domain name, which genuinely belongs to someone
else. It is the intentional registration of a well-known trademark as domain
name by a third person with an intention to sell it back to the original owner
of trademark, or to prevent the original owner from using his trademark as
domain name, or to obtain some other unlawful benefit or to cause harm to
the trademark owner out of domain name registration.98
It often results in
consumer fraud, impairs electronic commerce (both interstate and intrastate)
and deprives trademark owners of revenue and consumer goodwill.99
The
96
This statement would be elaborated at the later part of this thesis.
97 Black’s Law Dictionary, p. 1403.
98 British Telecommunication v. One in a Million [1999] 4 All ER 476; Manish Vij v. Indra Chugh
AIR 2002 Del 243. Also see Hector MacQueen, et al., Contemporary Intellectual Property Law &
Policy, (New York: Oxford University Press, 2008) p. 675.
99 Supra note 79, p. 39.
Domain Names and Trademarks: An Understanding of the Conflict
64
ambit of cybersquatting is ever expanding, since more and more forms of
mischief are coming into picture day by day.
The main purpose of cybersquatting in the majority of cases is to
make easy money100
by selling the domain name to the original owner of
trademark.101
In such cases, the domain name would be sold or offered for
sale at exorbitantly high prices.102
Sometimes it is sold to the highest bidder
by way of auction. This practice has led to the existence of domain name
brokers.103
Though such acts of resale are prohibited under law, the
cybersquatters try to defend their act on the ground that buying domain
name for resale is just like buying land for resale.104
Added to this, there is
100
Robert P. Merges, et al., Intellectual Property in the Technological Age, Fourth edition, (New
York: Aspen Publishers, 2007) p. 759.
101 Sometimes the domain names are sold to the competitors of original owners of trademarks.
102 Sporty’s Farm L.L.C. v. Sportman’s Mkt., Inc 202 F 3d 489, 493 (2d Cir. 2000). The margin of
profit available in making investment in the registration of domain name is not comparable to the
profit available in any other field. For example, in 1999, business.com was purchased for $ 7.5
million and in 2007, it was sold for a sum between $ 340 to $ 360 million. Benjamin D. Silbert,
„Trademark Law, ICANN, and Domain Name Expiration‟, AIPLA Quarterly Journal, Summer,
2008. <www.westlaw.com>
103 Supra note 12, p. 426.
104 Louis Altman and Malla Pollack, „Trade Identity Infringement‟, Callmann on Unfair
Competition, Trademarks and Monopolies, Vol. 4, Part VI. <www.westlaw.com>
Domain Names and Trademarks: An Understanding of the Conflict
65
also a market for the domain names, since the trademark holders prefer to
purchase domain names instead of involving in expensive and time
consuming litigation.105
Some of the earliest victims of this form of
cybersquatting are Panasonic, Tata, Bennett Coleman & Co, McDonald‟s,
Coke, MTV, Levi‟s, Readers Digest, Avon etc.106
The cybersquatting might also take the form of registering a domain
name in order to block the legitimate owner of trademark from using his
trademark as domain name.107
This kind of mischief is generally done by a
competitor in business, in order to prevent a well-known company from
expanding its business online. In neither of the above cases, the
cybersquatter may post any material on the web, since his intention is either
to sell the domain name to original owner of trademark or to prevent him
from using his trademark as domain name. Therefore, the cyber consumers
105
In most of the cases, loss suffered by the trademark holders by resorting to litigation would be
much more than what they have to pay for purchasing domain names from cybersquatters, which
prompts the trademark owners to go for purchase of domain names.
106 Supra note 11, p. 100.
107 Tina Hart and Linda Fazzani, Intellectual Property Law, Second edition, (New York: Palgrave,
2000) p. 233. Also David Bainbridge, Intellectual Property, Fifth edition, (Delhi: Pearson
Education, 2002) p. 675.
Domain Names and Trademarks: An Understanding of the Conflict
66
are not confused with regard to the sources of any goods or services. This
situation makes it difficult for the trademark holders to bring a successful
action under the trademark law, which requires the proof of consumer
confusion.108
The cybersquatting may also be done for the purpose of passing off
goods and services in the name of a well-known trademark. As the
electronic commerce is done in the absence of personal interaction with the
parties, there is sufficient scope for misleading the customers. The
registration of a well-known trademark by a third party as domain name
creates the impression that the domain name actually belongs to the said
trademark holder. This prompts the online customers to end up in landing
into wrong website and dealing with a company, which they never intended.
Furthermore, the act of cybersquatting may also be resorted to dilute
the goodwill of well-known trademarks. One of the common forms of
trademark dilution over the Internet is opening pornographic sites by using
108
Zohar Efroni, „A Barcelona.com Analysis: Towards a Better Model for Adjudication of
International Domain Name Disputes‟, Fordham Intellectual Property, Media & Entertainment
Law Journal, Vol. 14, 2003 - 2004, pp. 29 - 117 at p. 44.
Domain Names and Trademarks: An Understanding of the Conflict
67
well-known trademarks.109
Certainly, the reputation of the trademark would
be tarnished when it is used as a domain name to depict any sort of adult
entertainment.110
This form of causing unlawful harm to the trademark
owner is again generally resorted by the competitors in trade of goods or
services. In the above two situations, one involving passing off and other
involving dilution of trademark, since the confusion is created in the mind
of consumers, the trademark owner can resort to an action under trademark
laws.
The magnitude of cybersquatting can be understood by the
estimation done in the year 2000, which reveals that 98% of the words in
Webster‟s English Dictionary have been registered as domain names.111
Though certain remedies are available to the trademark holder,
cybersquatting is quite difficult to deal in practice. The trademark holder
109
Archdiocese of St. Louis v. Internet Entertainment Group, Inc. 34 F. Supp. 2d 1145 (1999);
Kraft Foods Holdings, Inc. v. Stuart Helm 205 F.Supp.2d 942 (2002); Mattel, Inc. v. JCom, Inc.
and Brad McBride 97 Civ. 7191 (1998); Victor Moseley v. V Secret Catalogue, Inc. 573 US 418
(SC 2003); and Toys "R" Us, Inc. v. Mohamad Ahmad Akkaoui 1996 U.S. Dist. Lexis 17090 are
some of the examples of trademark dilution by opening pornographic sites.
110 Hasbro Inc v. Internet Entertainment Ltd 1996 WLR 84853; 1996 U.S. Dist. LEXIS 11626
111 Supra note 24.
Domain Names and Trademarks: An Understanding of the Conflict
68
must either go for expensive, both in terms or money and time, court
litigation or has to register a new domain name and advertise extensively to
reach his consumers. Since both alternatives are not viable,112
the trademark
owner would ultimately be compelled to purchase such domain names by
paying hefty sums.
2.7.3 Registration of Domain Name Similar to Well-known Trademark or
Domain Name
The misuse of domain name registration can also be done by
registering a domain name almost similar to a well-known trademark or
domain name.113
A domain name similar to a well-known trademark or
domain name generates a misrepresentation that both endorse same goods
or services, thereby deceives the customers.114
The registrants of such
domain names also bank on the fact that people make simple typing
112
Gideon Parchomovsky, „On Trademarks, Domain Names and Internal Auctions‟, University of
Illinois Law Review, 2001, pp. 211 - 240 at pp. 218 & 221.
113 In Yahoo Inc v. Akash Arora & Another PTC (19) 210 (Delhi), an injunction was issued against
the defendants restraining them from using the domain name yahooindia.com as it was found
deceptively similar to the plaintiff‟s trademark and domain name.
114 Jayashree Watal, Intellectual Property Rights in the WTO and Developing Countries, (New
Delhi: Oxford University Press, 2001) p. 262.
Domain Names and Trademarks: An Understanding of the Conflict
69
mistakes while typing well-known domain names.115
Therefore, typically
the domain name registrant registers several possible input errors for well-
known domain names. The obvious purpose of such a kind of mischief is to
pass off goods or services by using the goodwill associated with the well-
known trademark or domain name.116
The new domain name would be so slightly different from already
existing domain name or trademark that the customers usually cannot
differentiate between the two. It may be by misspelling the domain name or
trademark,117
or adding some letter or word to the domain name or
trademark.118
These slightly variant domain names would be visited by the
net users when they make mistakes in typing the well-known trademark or
domain name. Thus, there is every chance of such users being deceived by
115
<http://www.infotoday.com/linkup/lud010108-goldsborough.shtml> Last visited, 09 March
2010.
116 Xuan-Thao N. Nguyen, „Blame it on the cybersquatters: How Congress Partially Ends the
Circus Among the Circuits with the Anticybersquatting Consumer Protection Act‟, Loyola
University Chicago Law Journal, Vol. 32, 2000 - 2001, pp. 777 - 813 at p. 792.
117 Microsoft Corporation v. Microsof.com, WIPO Case No. D2000-0548 (21 July 2000).
118 Supra note 113.
Domain Names and Trademarks: An Understanding of the Conflict
70
the miscreants.119
This kind of mischief is referred in general as
typosquatting120
or sometimes cyber piracy.121
The individuals involved in
this kind of domain name acquisition are generally known as typosquatters
or cyber parasites.122
2.7.4 Reverse Domain Name Hijacking
In addition to the above mentioned major conflicts, a problem of
recent origin in the field of domain name registration is reverse domain
name hijacking.123
It is an attempt by a trademark holder, having bad faith,
to take control of a domain name from another, who has not breached the
trademark laws, and who has a legitimate interest in the domain name.124
Here the person attempting to take control of the domain name would be
119
Robert A. Badgley, „Internet Domain Names and ICANN Arbitration: The Emerging “Law” of
Domain Name Custody Disputes, Texas Review of Law and Politics, Vol. 5, 2000 - 2001, pp. 343 -
392 at p. 346.
120 Supra note 24.
121 Supra note 119.
122 Roger E. Schechter and John R. Thomas, Intellectual Property – The Law of Copyrights,
Patents & Trademarks, (MN: West Group, 2003) p. 792.
123 Paragraph 1 of the UDRP Rules - Reverse Domain Name Hijacking means using the Policy in
bad faith to attempt to deprive a registered domain-name holder of a domain name.
124 Supra note 12, p. 428.
Domain Names and Trademarks: An Understanding of the Conflict
71
having full knowledge of the fact that the owner of domain name has
legitimate interest in it. Still he resorts to legal action in bad faith with a
primary intent to harass the domain name holder.125
Therefore in these cases
the party who is subject to harassment is a legitimate domain name holder
rather than a trademark holder.
One of the examples of reverse domain name hijacking to quote here
is pokey.org ‟s registration. pokey.org, named after the nickname of a
twelve year old boy, was registered as a personal website of the said boy by
his father. The Prima Toy Company, which owned „Gumby‟ and „Pokey‟
trademarks, threatened the boy with legal consequences, despite the fact that
pokey.org was not in any way advertising toys.126
The reverse domain name hijacking seems to be an offshoot of
cybersquatting litigation. Initially, the trademark holders responded to the
cybersquatting by filing lawsuits against registrants to enforce their
trademark rights. The large number of cases decided in favor of trademark
holders depicts the success story of such litigations. Gradually, the
125
Anne Gilson LaLonde, „Litigation Alternatives: UDRP and Trademark Office Proceedings‟,
Patents, Copyrights, Trademarks, and Literary Property Course Handbook Series, June-July,
2007. <www.westlaw.com>
126 <http://domains.dan.info/conflicts/pre-icann.html> Last visited, 09 March 2009.
Domain Names and Trademarks: An Understanding of the Conflict
72
trademark holders started to realize that registrants would often settle their
cases rather than litigate. This realization resulted in an undesirable shift in
the position. The trademark owners started to use the threat of litigation to
coerce the innocent domain registrants to give up their domain names to the
trademark owners.127
Unfortunately, this kind of conflict is not properly addressed in
law.128
Only remedy available in such circumstances is a written reprimand
against the complainant.129
This being the fact, the instances of reverse
domain name hijacking are increasing and the trademark holders are often
using the threat of protracted litigation to make legitimate domain name
holders submissive. Such acts make individuals and smaller enterprises
127
<http://en.wikipedia.org/wiki/Reverse_domain_hijacking> Last visited, 09 March 2009. See
also Nina O‟Sullivan, „Patent, trademark and design litigation: groundless threat‟, available at
<http://lawcommission.justice.gov.uk/docs/cp212_patents_groundless_threats_background_papers
1.pdf> Last visited, 17 December 2013.
128 The UDRP gives less significance to the problem of reverse domain name hijacking. See Mikki
Barry, „Comments on UDRP‟, available at <http://www.icann.org/en/comments-mail/comment-
udrp/current/maillist.html> Last visited, 30 June 2009.
129 Supra note 125.
Domain Names and Trademarks: An Understanding of the Conflict
73
helpless, since they do not posses huge budget to fight lengthy and costly
domain name-trademark litigation.130
2.8 Trademark Rights vis-à-vis Freedom of Speech over the Internet
The above-discussed conflicts between domain names and
trademarks make us to ponder on the implications of freedom of speech,
which is a recognized fundamental right under most of the constitutions in
the world.131
In case of conflict between domain names and trademarks, the
trademark owner often fights for his trademark rights in the virtual world.
But the question here is how far he is entitled to get protection to his real
world trademark in an entirely different world (virtual world). The answer
to this question depends on striking a delicate balance between the two
conflicting interests.
On the one hand, it is necessary to protect the rights of trademark
owners against those who infringe or try to infringe the trademark in various
manners. On the other hand, the domain name registrants‟ exercise of
freedom of speech also needs to be respected and guarded against violation.
130
Shari Steele, „EFF‟s Comments on the Uniform Dispute Resolution Policy (UDRP)‟, available
at <http://www.icann.org/en/comments-mail/comment-udrp/current/maillist.html> Last visited, 30
June 2009.
131 Art. 19 (1) (a) of Indian Constitution guarantees freedom of speech and expression.
Domain Names and Trademarks: An Understanding of the Conflict
74
Cyberspace is a forum where one can exhibit his wildest dreams, passions
and fantasies. Anonymity in the e-world allows man to release his inner
self, without any fear of rejection by his fellow men. From poetry to
pornography the different facets of life of people are dealt within this e-
world. Therefore, there is a requirement of recognizing the fundamental
right to speech, which is essential for the progressive development of one‟s
personality, in the e-world.
Today, there are hundreds of parody and gripe websites that have
commentaries to criticisms on different issues. These websites stand as a
means of communication of ideas by the people.132
If these websites have
domain names bearing others trademarks, do they infringe the rights of
trademark owner? This question is a big challenge to the adjudicators. The
task of balancing free speech protection and commercial trademarks
interests in the context of domain names has not been easy to the legal
fraternity. So far the development of legal regime, be it UDRP or national
laws, shows its favoritism towards trademark rights. This has led to the
legal scholars to be concerned about the expansion of trademark property
132
Supra note 47, p. 1095.
Domain Names and Trademarks: An Understanding of the Conflict
75
rights, and the consequential overprotection afforded to the trademarks at
the expense of freedom of speech.133
Added to this, there are increasing instances of trademark owners
bringing claims against domain name registrants neither for cybersquatting
nor for passing off, but merely because some trademark terms were found in
the domain name.134
These situations challenge the domain name owners‟
freedom of speech over the Internet. The decision in favor of trademark
holders in such cases would be unjustifiable, since there would not be any
infringement of trademark.135
2.9 Chapter Conclusion
The development of Internet has changed the lifestyle of man. Using
this advanced technology for innumerous causes has made it a striking
feature in different aspects of human life. Today, the domain names are the
133
Kiran Nasir Gore, „Trademark Battles in a Barbie – Cyber World: Trademark Protection of
Website Domain Names and the Anticybersquatting Consumer Protection Act‟, Hastings
Commercial and Entertainment Law Journal, Vol. 31, 2008 - 2009, pp. 193 - 221 at p. 195.
134 Mattel, Inc. v. Global China Networks, LLC. No. 07 Civ. 7418, 2007 WL 2509011.
135 Harini Narayanswamy, „Trademark Owner‟s Rights in Domain Names Used for Criticism
Websites‟, Manupatra Intellectual Property Reports, Vol. 1, February 2009, pp. 219 - 225 at p.
225.
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76
most significant elements in the cyberspace. With the revolutionary
transformation in the concept of property, there is an ongoing debate over
the issue of virtual property status of domain names. However it seems to be
a dangerous trend, since stretching the concept of property to such an extent
so as to include domain names seems to be unrealistic and impracticable.
The functional similarities between the domain names and the
trademarks have brought them together in the virtual world. But this
interrelation between the domain names and trademarks has also resulted in
conflicts between them, especially with the growth of e-commerce.
Resolution of such conflicts, to be certain, is a major challenge to law in the
years to come. Even if the laws are enacted, the adjudicators would be
confronted with the ever existing problem of striking a delicate balance
between the trademark rights and freedom of speech over the Internet.
Already, the domain name-trademark conflicts have compelled the
legal fraternity to rewrite traditional trademark laws and create new cyber
laws. Efforts are being made both in the national and international levels to
find legal solution to the conflicts. However, the pace with which the
technology is marching has left the law far behind. In light of this factor,
next chapter would look into the attempts made at national levels, especially
Domain Names and Trademarks: An Understanding of the Conflict
77
by US and UK, for resolving domain name-trademark conflicts. The major
objective of it would be to know how effective or how ineffective the laws
of two major states, one having a specific legislation and the other dealing
under the existing trademark law, in overcoming the conflicts between
domain names and trademarks.