Anti-Cyber Squatting Consumer Protection Act Update

Our law firm receives a lot of calls from people andBecause of this bad faith factor, it is important for all
companies who are being threatened with andomain name owners to check their domain
Anti-Cyber Squatting Consumer Protection Act claimregistrations regularly in the Who's database to
because they registered a domain name identical ordetermine if their contact information is correct.
similar to a trademark held by someone else.If you should decide to file an ACPA lawsuit, you
Inevitably, we hear the words "Network Solutionshave a variety of remedies which are available to
allowed me to register the domain, so there is noyou under the act. The most important one is
way someone can say that I did anything wrong."potential forfeiture or cancellation of the domain
Of course, Network Solutions and the othername or transfer of the domain name to the plaintiff.
registrars do little to ensure that a person registeringIn lieu of actual damages, the plaintiff may elect
a domain has legal right to do so. In fact, about thestatutory damages and has discretion to award
only thing registrars do is make each person whobetween $1,000 and $100,000 in damages for bad
purchases a domain affirm that they are notfaith registration. Attorney's fees are also available
interfering with some else's legitimate trademarkfor a bad faith registration. Sometimes, the domain
rights. The fact that you are able to register aowner cannot be found or served with a Summons
domain doesn't mean that you won't get sued forand Complaint because they have provided false
having done so under federal law.information or are not located within the United
The ACPA is a federal law that took effect inStates. In these instances, a trademark owner may
November 1999, in order to preclude bad faithbring in "In Rem" action against the domain name in
registration of domain names. This new domain namethe judicial district in which the domain name registrar,
dispute law is intended to give trademark and servicedomain name registry or other domain name
mark owners legal remedies against defendants whoauthority that registered or assigned the domain
obtain domain names "in bad faith" that are identicalname is located. Money damages are not available in
or confusingly similar to a trademark or service mark.an "In Rem" lawsuit. Typically, the trademark owner
In order to win a case of cyber squatting, plaintiffis more focused at having the domain name
must prove that defendant has a bad faith intent totransferred to them.
profit from the mark that is identical or confusinglyOne recent Sixth Circuit Court of Appeals case,
similar or dilutes plaintiff's mark. The key element isInteractive Products, Corporation v. A2Z Mobile
that plaintiff must prove that defendant has"bad faithOffice, No. 01-3590 (6th Cir., April 10, 2003), was not
intent to profit from the mark." What this means isgood news for trademark holders in our jurisdiction.
that if defendant merely registers the domain andThe Court held that the "post-domain path of a URL
does nothing with it commercially, plaintiff will have a(the sub-file directory). . . does not typically signify
difficult if not impossible time proving bad faith.source (of goods or services). The post-domain path
Typically, intent to profit is shown by the use of themerely shows how the website's data is organized
domain as a commercial site which sells goods orwithin the host computer files." Accordingly, the Sixth
services. For an alleged domain violator who does notCircuit held that the presence of plaintiff's trademark
develop a website, bad faith intent to profit is oftenin the path of the domain name of a competitor was
shown when the defendant tries to sell the domainunlikely to cause consumer confusion. Interestingly,
name to the trademark holder. Any transfer of thethe Court reached this result even though the
domain for consideration will typically satisfy thedefendant, A2Z, was selling competing products. It
profit test.should be noted that the Court did not hold that
Another bad faith factor is if the registrant providesusing some else's trademark in the top level domain,
false contact information to the registrar or fails toon the website itself or in the meta tags is exempt
maintain correct contact information moving forward.from ACPA liability.