If I sell a trademarked domain...

[rhopperger]

Hello,

I have a hypothetical question.


If I (Reinhard) had registered a domain that conflicted with some trademark. Now if I sold this domain to somebody (John) and the original owners (ABCD Inc.) sued the new owner for damages,

is it possible that I (the original seller) can be held liable by ABCD Inc too?

It hasn't happened and hopefully never will, but I'd like to know.

If there is a liability for the initial owner, how far does the chain go? (If A sells to B who sells to C who sells to D, ... who gets sued...)

Does it make a difference if I bought the domain myself or if I registered it as a new name?

Thank you for your answers!
Reinhard

 

[Mizzoula]

I believe the person getting sued can then turn around and seek damages from the person he/she bought the domain from if it was an acquisition that occurred during the life of the trademark.

 

[rhopperger]

I understand this, but what about the trademark holder sueing the original owner/seller ? Is there a connection?

Thank you for your answers
Reinhard

 

[Mizzoula]

I don't think they go after the original registrant, their focus would be on the current owner.

 

[domainduck]

NOTE: By clicking the 'Submit' Button, you are agreeing to the 'REGISTRAR LINK' Registration Terms & Conditions. 'YOUR-NAME or BUSINESS' makes no representations as to whether these names infringe or violate any trademark or intellectual property rights.



quack

 

[jberryhilljberryhill is verified member.]

"I don't think they go after the original registrant, their focus would be on the current owner."

Don't kid yourself. The first rule of filing a lawsuit is "name everyone".

I am aware of at least one lawsuit in Maryland where the plaintiff did indeed go after both the current registrant and the former registrant. The current registrant, of course, had the domain name to bargain with. The former registrant was hung out to dry and was pretty much screwed by all concerned.

Whenever you transfer a domain name to anyone, you should have the transferee indemnify you against any third party claims arising in connection with the domain name.

 

[Mizzoula]

Originally posted by jberryhill
[BWhenever you transfer a domain name to anyone, you should have the transferee indemnify you against any third party claims arising in connection with the domain name. [/B]

Thanks for clarifying that. I understand the above quote does take place, but how often do they go for everyone including the previous owner? Or is it just the mood of the plaintiff?

 

[rhopperger]

Thanks a lot everybody for your comments. Especially jberryhill
's which was very interesting to read!

Thanks a lot!
Reinhard

 

[HOWARD]

There should be a written transfer agreement every time you sell a domain. The Agreement should specifically state that the seller makes no warranties as to the domain and that there are no pending claims against the domain and that the seller will be held harmless and indemnified by the buyer if the seller is sued by any third party due to the use of the domain by the buyer. This won't prevent the seller from being sued by a third party trademark owner, but it WILL give the seller some protection against judgments being entered against him.