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Domain Names and Trademarks: An Understanding of the Conflict

CHAPTER 2:
DOMAIN NAMES AND
TRADEMARKS: AN
UNDERSTANDING OF THE
CONFLICT

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Domain Names and Trademarks: An Understanding of the Conflict

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.

27
Domain Names and Trademarks: An Understanding of the Conflict

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.

28
Domain Names and Trademarks: An Understanding of the Conflict

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.

29
Domain Names and Trademarks: An Understanding of the Conflict

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.

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Domain Names and Trademarks: An Understanding of the Conflict

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.

31
Domain Names and Trademarks: An Understanding of the Conflict

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.

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Domain Names and Trademarks: An Understanding of the Conflict

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.

33
Domain Names and Trademarks: An Understanding of the Conflict

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.

34
Domain Names and Trademarks: An Understanding of the Conflict

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.

35
Domain Names and Trademarks: An Understanding of the Conflict

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.

36
Domain Names and Trademarks: An Understanding of the Conflict

(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.

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Domain Names and Trademarks: An Understanding of the Conflict

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.

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Domain Names and Trademarks: An Understanding of the Conflict

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.

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Domain Names and Trademarks: An Understanding of the Conflict

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.

40
Domain Names and Trademarks: An Understanding of the Conflict

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).

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Domain Names and Trademarks: An Understanding of the Conflict

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.

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Domain Names and Trademarks: An Understanding of the Conflict

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.

43
Domain Names and Trademarks: An Understanding of the Conflict

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.

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Domain Names and Trademarks: An Understanding of the Conflict

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.

45
Domain Names and Trademarks: An Understanding of the Conflict

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.

46
Domain Names and Trademarks: An Understanding of the Conflict

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.

47
Domain Names and Trademarks: An Understanding of the Conflict

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.

48
Domain Names and Trademarks: An Understanding of the Conflict

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.

49
Domain Names and Trademarks: An Understanding of the Conflict

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>

50
Domain Names and Trademarks: An Understanding of the Conflict

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.

51
Domain Names and Trademarks: An Understanding of the Conflict

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.

52
Domain Names and Trademarks: An Understanding of the Conflict

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.

53
Domain Names and Trademarks: An Understanding of the Conflict

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.

54
Domain Names and Trademarks: An Understanding of the Conflict

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.

55
Domain Names and Trademarks: An Understanding of the Conflict

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.

56
Domain Names and Trademarks: An Understanding of the Conflict

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.

57
Domain Names and Trademarks: An Understanding of the Conflict

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.

58
Domain Names and Trademarks: An Understanding of the Conflict

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.

59
Domain Names and Trademarks: An Understanding of the Conflict

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.

60
Domain Names and Trademarks: An Understanding of the Conflict

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”.

61
Domain Names and Trademarks: An Understanding of the Conflict

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.

62
Domain Names and Trademarks: An Understanding of the Conflict

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.

63
Domain Names and Trademarks: An Understanding of the Conflict

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>

64
Domain Names and Trademarks: An Understanding of the Conflict

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.

65
Domain Names and Trademarks: An Understanding of the Conflict

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.

66
Domain Names and Trademarks: An Understanding of the Conflict

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.

67
Domain Names and Trademarks: An Understanding of the Conflict

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.

68
Domain Names and Trademarks: An Understanding of the Conflict

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.

69
Domain Names and Trademarks: An Understanding of the Conflict

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.

70
Domain Names and Trademarks: An Understanding of the Conflict

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.

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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.

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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.

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Domain Names and Trademarks: An Understanding of the Conflict

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.

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Domain Names and Trademarks: An Understanding of the Conflict

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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Domain Names and Trademarks: An Understanding of the Conflict

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

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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.

77

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