Legal Question in Technology Law in California
Not your average domain name ownership dispute!
I own a network consulting business. A business which leases office space to other companies used my services to maintain their internet needs. I registered a domain name for a new tenant and at the same time a dispute over a past due invoice occurred. The leasing company refused to pay me for past services rendered and for payment of registering domain name. I have kept control of said domain and refuse to turn this over to the new tenant because of non-payment. I am not trying to charge a high cost for the domain, just the $35.00 out of pocket and 1 hour charge for researching and registering the name.
Am I within my rights to hold ownership and refuse transfer until I'm paid?
1 Answer from Attorneys
Re: Not your average domain name ownership dispute!
You are correct. This is not your average domain dispute.
1) Under the Anti-Cybersquatting COnsumer Protection Act (and the trademark law - Lanham Act as amended) "cybersquatting" is when a person registers with no rights in a name registers the name in bad faith. One way of showing bad faith is when the party who registered the name demands compensation in excess of the cost (reasonable retail value) of registering and maintaining the domain. In most cases, an offer to sell a domain name for less than $ 100 cannot be deemed cybersquatting. HOWEVER:
2) The tort of conversion is when a person, without good cause, takes the property of another person or company (its like a civil version of theft). Unless there was some contract or agreement as to who would hold (or own) the domain, this grey area situation could possibly result in a suit for conversion against you.
Your message raises more questions than can be effectively and properly answered here with any reasonable certainty.
If you would like to discuss this matter, please feel free to call us at (949) 754-3048, or check out our domain dispute websites:
www.namesavers.net and
www.domain dispute.net
Good Luck
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