subject: Domain Owners and the New UDRP Laws - Is Your Domain Portfolio in Danger? [print this page] Domain Owners and the New UDRP Laws - Is Your Domain Portfolio in Danger?
As the internet penetrates deeper and deeper into our lives, more and more people are taking part in the lucrative activity of buying and selling domain names, called "domaining". The people who buy and sell names are called "domainers". Thousands of people make significant incomes through this activity, and there are even some publicly traded companies whose main source of income is domaining (NameMedia, listed on the Canadian Stock Exchange, is one example).
However, certain changes made by ICANN (International Corporation of Assigned Names and Numbers), the body that governs the rules behind domain names and much of the internet, could land innocent domain owners into trouble.
The laws, which concern the UDRP (Uniform Dispute Resolution Policy) process used by copyright holders to settle disputes with domain owners, have been changed dramatically to allow big corporations to take away a name that infringes on a trademark, even minutely.
For instance, you own a name like "SoftMicrotech.com" - a legitimate company name with only a slight resemblance to Microsoft. With the new UDRP laws, Microsoft could sue you for $100,000 outright, even if you can prove that the name was used for legitimate reasons. $100,000 is only the minimum amount as per the new UDRP laws, which can land innocent name owners in hot water.
Compounding their misery is the cavalier attitude of big corporations, who have been indiscriminate in suing domain owners. eBay, for instance, routinely sends Cease & Desist letters to people who own domains with the word "Bay" in it. Frequently, these are the names of geographical units, such as the Chesapeake Bay (on which, of course, eBay has no TM rights). Nevertheless, innocent people have found themselves being victimized courtesy of the new laws and the attitude of big businesses.
My solution would be to carefully go through your domain portfolio and weed out any name that might infringe on a prominent trademark, even if it is purely by coincidence. Better to be safe than to shell out $100,000.
