Does being a domain trader hurt you in legal proceedings?

[Chappy]

Lets assume your business is buying and selling domains. You are approached by a foreign company (non-famous) who's name is the same as one of your domains and they demand it. The domain is an acronym which has plenty of other meanings and the domain is parked with nothing on it connected with the foreign company's business. As an act of good faith you offer to sell the domain to complaining company at the price you paid for it (no gain/loss) but they refuse. You then go on about your business looking for alternative buyers. Company gets mad.

Is there any bad faith here?

Does the domainer have legitimate rights/interests?

 

[Theo]

Offering to sell it is not an act of good faith, however they don't have an immediate right to a domain just because it matches their company name. That's what the WIPO challenge is for.

 

[fab]

Does the domainer have legitimate rights/interests?

ure sounds like it.

 

[David G]

The short answer is YES and possibly in a big time way too. Even if you offered it for sale for a short time on a venue like Afternic even 5 or more years ago and never offered it to the TM owner they can still use it as major negative evidence against you. In fact, if the attorney is sharp you can count on that happening either in the WIPO case or in Court.

 

[Chappy]

So domain trading is not considered legitimate uses for domains and is essentially evidence of acting in bad faith?

I completely understand that trying to profit from the TM holder is "wrong" but is regular buying/selling to fellow domainers, etc. considered inappropriate?

 

[pioneers]

the thread is not clear... is the name TMed by this non-famous company ?

 

[Chappy]

the thread is not clear... is the name TMed by this non-famous company ?

Yes, assume they have a trademark equivalent to the domain name.

 

[Gerry]

I remember how domainers were once classified as "cybersquatters".

Now the terms "Name Squatting" (as it applies to sites like Twitter) and "Brand Squatting" are appearing more frequently in the press.

 

[bmugford]

Here is an interesting case - http://www.adrforum.com/domains/decisions/92531.htm

The Panel finds therefore that Prime Domains has rebutted General Machines' arguments and has proven that it is in the business of selling generic and descriptive domain names such as craftwork.com. As a result, Prime Domains does have a legitimate interest in the domain name. That Prime Domains has offered to sell this descriptive, non-source identifying domain name does not make its interest illegitimate.

 

[Chappy]

Here is an interesting case - http://www.adrforum.com/domains/decisions/92531.htm

The Panel finds therefore that Prime Domains has rebutted General Machines' arguments and has proven that it is in the business of selling generic and descriptive domain names such as craftwork.com. As a result, Prime Domains does have a legitimate interest in the domain name. That Prime Domains has offered to sell this descriptive, non-source identifying domain name does not make its interest illegitimate.

Great find. Very interesting.

 

[bmugford]

There are other cases as well with similar findings (Ode.com and others).

Brad

 

[fab]

Take a look at this case. This is our forum owner. http://www.wipo.int/amc/en/domains/decisions/html/2005/d2005-0241.html

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