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Why not malicious prosecution?

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Ovicide

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I've often wondered why this doesn't happen more often. Here's a sample situation:

1. Someone in the U.S. registers a generic name, "example.com" and points it at a For Sale page, asking several million dollars.

2. A wealthy U.S. corporation want's the name.
a) They can make a weak claim for trademark infringement.
b) They do not believe they can win a UDRP.
c) They do not believe they can win a trademark infringement suit.
d) They do not want to pay the asking price of several million dollars.

3. They sue the person who has registered the name, knowing he cannot afford to defend the suit.

4. The domain name holder gives them the name, rather than defend a law suit that he may win.

Do companies to this to people?
What's to prevent them?
 
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Anthony Ng

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Ovicide said:
Do companies to [sic] this to people?
They do that ALL THE TIME!
 

HOWARD

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There is a Rule in U. S. Federal Court that provides for sanctions against Plaintiffs and their attorneys who may file "sham" pleadings that they know cannot succeed. The Defendant, if he can prove that they are simply trying to force him into giving up a domain, can recover attorneys fees, costs and additional moneys for being falsely dragged into court. CAVEAT: If there is ANY evidence that there may be some truth in the pleadings, the Court can rule in favor of the big money Plaintiff.
 

jberryhill

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Ovicide

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jberryhill said:
www.johnberryhill.com/cello

The sanctions have been reversed on appeal, but the decision on the merits remains unchanged.

In this case, Mr. Storey stood his ground, but a lot of people wouldn't be able to afford to defend themselves.

It looks like a good strategy for getting a good name cheaply, if the person holding the name is in the U.S.
 
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