Legal Question in Technology Law in Illinois
Domain Name Reselling
We had purchased a domain name approximately 2 years ago. The domain registrar did not notify me that it was coming due, something I thought they did. Anyway, someone else has registered it and has now made it into a porn site. We are a small family company and so would be the only ones interested in the domain name. They are now offerring our domain name for sale. I have now learned that this is a growing industry out there, buying up domains and then in essence forcing the original owner to pay huge dollars for their name back. They of course have not solicited us directly. Is there anything that we can do about this? They way I read the Uniform Domain Name Dispute Resolution Policy is that they cannot (Should not) do this. Would greatly appreciate any assistance to our question.
2 Answers from Attorneys
Re: Domain Name Reselling
Do you have a federal trademark registration for your business? If so, this would make UDRP much easier. It is my opinion that you could still can go through UDRP if not. Before that, however, a cease and desist/demand letter from an attorney might get their attention and you might then avoid the process. Thanks for your posting. Please let me know if I can be of further assistance.
Best regards,
Todd D. Epp, Esq.
800-289-5999
Re: Domain Name Reselling
I think that there is a potential remedy under the UDRP for a domain name owner who has innocently failed to renew after establishing a trademark or service mark through the use of the domain prior to expiration. It may be significant to this to have registered or at least applied to register the domain name as a Federal trademark or service mark.
It is a significant problem if the domain name owner has been negligent in failing to renew the domain name, and there are indeed various buzzards lurking to pounce on those names that are not renewed. Registering and selling expired domain names is a thriving business for some. However, where common sense tells you it seems unfair, it is usually because there is a trademark or service mark usage established that is likely to be damaged by confusion due to the second user, and that is precisely where there may be a remedy due to the trademark or service mark rights established prior to expiration of the domain. Who wins depends heavily on the particular facts. If yahoo were to let their domain name registration expire (which is inconceivable)and someone else tried to snap up the domain and start a new yahoo, they would be dead meat. If, on the other hand, someone who planned to, but never did, set up a website lets their domain expire, there will be no brand name recognition sufficient to recapture that domain without buying it back.
You can see that your specific facts will dictate your specific result. You need an attorney's help to resolve this, I suspect. I can help you or I can refer you to others who can help. Keep in mind that it may be cheaper and quicker and surer at some point to buy out the new registrant rather than engage in an expensive fight. That is why there is such a business in snapping up inadvertently expired domains and why it is vital to not let a domain accidentally expire.
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