Protect Your Good Domain Name

What's in a name? If it's an Internet domain name, maybe millions or dollars--or maybe a trip to court.

Memorable domain names are in short supply, and the prices of sought-after ones are skyrocketing. Late last year, for example, the name "business.com" sold for a record $7.5 million.

While mere mortals may scratch their heads over the price, at least that deal was legitimate.

But the name shortage has also led to a practice called cybersquatting--registering someone else's brand name and then attempting to profit from it.

In January, the United Nations' World Intellectual Property Organization, which acts as an arbiter in domain disputes, ruled that Worldwrestlingfederation.com should be transferred to its namesake. WIPO ruled that the original registrant, an individual in California, had no legitimate interest in the name and had acted in bad faith. Last month, WIPO decided an individual from Arizona had no rights to the name alcoholicsanonymous.net, which was transferred to AA, the trademark holder of the name since 1939.

Cases like these prompted Congress to enact the Anti-Cybersquatting Consumer Protection Act, which allows businesses to seek damages of up to $100,000 from those who knowingly register a trademarked name that they do not own.

Teen Trials

One of the first companies to test the law in court was Teen Magazine.

When Teen Magazine editor Tommi Lewis realized her magazine's name was registered by another business, she was understandably upset. The magazine has published under the trademarked name since 1957. But the real problem was the site's content, which went up around the Christmas holiday.

"The first screen you hit was hardcore pornography," Lewis says. "It was shocking. I can't even imagine what a young girl would think. It was so contrary to the reputation that Teen has fought to build."

Teen's next move? Call the lawyers. Teen's attorney took the registrant, Blue Gravity Communications, to court.

Tom Krwawecy, chief executive officer of Blue Gravity, says he sold the domain name for "a couple grand" but didn't realize the company he was selling to would publish adult content. "Cybersquatting is where you approach a company and try to sell their name to them," Krwawecy argues. "We never contacted [Teen Magazine]. It was just one big headache."

Teen recently got the name back, but the company is still fighting for control of other domains that are confusingly similar or otherwise dilute the trademark.