Legal Question in Technology Law in Arizona

What should I do about this letter

I worked for a company for 8 years. I built a website for them 3 years ago. I registered a domain name and paid for it out of my own pocket, it is registered in my name it is not trade marked. I built the site in my own time and was not compensated for it. I left and I started my own company which is a direct competitor. I removed their site and place my own site up using the domain name that I own. I received a letter from XYZ company this is what it says.

Dear B:

You have altered the XYZ company website so that anyone seeking our web address is automatically routed to ABC company (my business) webpage which is an obvious competitor to XYZ company in Arizona. Regardless of the fact that you have paid the fee for the domain name, use of the XYZ company name in any way to benefit the sales of ABC company and to the detriment of XYZ company is illegal.

I am therefore asking you to cease using the XYZ company website and simply shut it down within the next (3) business days. I will monitor to see if that is done. Should you fail to comply with that request, we will

seek a remedy available to us under the law.

Does anyone have any recomendations. Thanks.


Asked on 4/17/02, 2:52 pm

1 Answer from Attorneys
Bruce Burdick Burdick Law Firm

Re: What should I do about this letter

You don't say, but I am guessing that the domain name of this site is some form of the name of the company where you used to work. If so, they are right and you are wrong. There are recent decisions on use of websites to divert customers. Lesser transgressions (overuse of competitor trademarks to trick search engines and get ranked ahead of the actual trademark owner and to divert customers of the trademark owner) have been found to be trademark infringement. See IPNEWS under my website www.burdlaw.com and look under the trademark column and you will see a case (JK Harris)on this.

If, on the other hand, the domain name is dissimilar from the other company, you may have a defense, depending on the specifics of your use.

If you want to try to keep the domain name you currently have and keep using it, you need a good trademark lawyer to advise you on how to reduce your risk. I can certainly recommend you a good lawyer in this area of the law.

Bottom line: You are on thin ice, so skate carefully or get off the lake.

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Answered on 4/17/02, 4:55 pm


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