Notes
Slide Show
Outline
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Cyberbanking 2002:
“Banking” On Domain Names
  • Law Offices of Green & Green
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The Importance of Trademarks
  • Bank Trademarks fall under Lanham Act
    • Trademarks represent most of the Good Will of the Institution to the Consumer.
    • Internet Domain Names behave like Trademarks
  • Domain Names 2002: Complexity & Success
    • ICANN ADR
    • ACPA in U.S. Courts
  • Not All Domain Names are easy to Obtain & Keep
  • First Amendment Plays major role
  • Internet Changed the Rules and Playing field…
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Weak and Strong Marks
  • Cases and ADR show Financial Institutions Usually can win marks
    • Tendency for Banks to Use Generic Names
      • First Savings Bank, F.S.B. V. First Bank System, Inc. (101 F.3d 645)
      • Bank United v. BuildPro Communications (NAF)
    • Reliance on non – Lanham Act approaches do not constitute rights to a Trademark in U.S.
      • Chase Manhattan Corporation et al. v. John Whitely (WIPO)
      • And weakens the rights internationally
    • Geographical Designations make weak Marks
      • SOUTH Bank v. Media Street (WIPO)
    • All businesses need to Register and Police…
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Care in Mark Selection
  • Searches of International Trademarks is a must if online:
    • Along with Domain Name searches
    • Before any money is spent
    • Before a Campaign is Started
    • Before Consumer Testing
  • Following marks and repeating searches.
  • Registration of “Good Marks”
    • After some market testing
    • Avoid descriptive wording
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Fanciful to Descriptive
  • Marks to be Registered should be Fanciful on a spectrum from “Xerox” to “Photocopier”
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Relationship Between Trademark and Domain Names
  • Domain Name is international but Trademark only viable in country where it is registered. – No extraterritorial effect.
  • Domain Names are all unique BUT FOR the TLD (the dotcom-dotnet-dotinfo)
  • UN policy: Registered Trademark has most validity in disputes.
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UDRP Domain Name Disputes
  • Paragraph 4(a) of the ICANN Uniform Domain Name Dispute Policy
  • (1) the domain name registered by the Respondent is identical or confusingly similar to a trademark or service mark in which the Complainant has rights;
  • (2) the Respondent has no rights or legitimate interests in respect of the domain name; and
  • (3) the domain name has been registered and is being used in bad faith. Identical and/or Confusingly Similar.
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“Thank You Bank U.”
  • Bank United Corp. and Bank United v. BuildPro Communications, REGISTERED Trademark has strength.
    • Respondent Buildpro builds web sites for others and cannot use “bank” or enable any of its customers to use the word under State Law.
    • Buildpro could ONLY use the BANKU Domain Name to foreclose the REAL Bank United and enable its competitors
      • CA FINANCIAL CODE § 3392, Corp Code § 201: unauthorized use of WORD “Bank” IN BUSINESS NAME unless Commissioner of Financial Institutions approves.
    • Seen as an illegitimate warehousing of the ONLY Domain Name “BANKU.COM.” and thus in Bad Faith.
    • Claim Number: FA0007000095158  -National Arbitration Forum, Sept 2000
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Chase Manhattan
  • Do not Rely on a “dba” or Business License
  • Financial  Credit clearing service use of “chasemerchantservices.com” even though it had a “right” under county issued business license.
  • Chase Manhattan was STRONG, OLD and a REGISTERED Trademark.
    • Chase Manhattan Corporation et al. v. John Whitely Case No. D2000-0346 (WIPO June, 2000)
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SOUTH Bank v. Media Street
  • Unlike The Bank U. case, South bank had not registered a Trademark and mark is weak.
    • Registration adds: Presumption of Ownership in U.S.
  • Generic Words do NOT a strong mark make:
    • South Bank is a business center in London
    • Shows international nature of Domain Names
    • Web developer had, therefore “legitimate” uses for “south bank.com”
    • SOUTH Bank v. Media Street, Case No. D2001-0294 (WIPO, April, 2001)
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Complexity Continues
  • First Amendment Plays Role in U.S. Based cases.
  • ADR in Domain Name cases
    • Unusually large amount of “Stare Decisis” for ADR
  • UDRP Shop for Arbitrator Panels Carefully
    • Arbitrators can be arbitrary
    • Use contract terms to specify Law and Details of ADR
  • Jurisdiction via Internet A Major Factor in all Unfair Competition Cases
  • Banks, Entertainers, All businesses fall under these rules.
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First Amendment Plays Role in U.S. Based cases.
  • SUCKS websites may be legitimate comment, criticism
    • Walmart stopped several BLATANT abuses
  • Defamatory statements are protected
    • Bihari could not stop blatant defamation
  • NO 1st Amendment in UDRP – WIPO panel limits use: “The Panel stresses that this decision does not address legitimate freedom of expression sites others… characterize this decision as seeking to stifle freedom of expression … by ordering the transfer of "sucks" formative names. …this decision to serve[s] neither …aim. This decision is directed to a blatant abuse of the domain name registration process -- no more, no less.”


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Jurisdiction under Lanham Act
  • Tricky Internet jurisdiction A Major Factor in all Unfair Competition Cases:
    • Cybersell:. WebPages alone Not “purposeful availment” of AZ business. 130 F.3d 414 (9th Cir. 1997).
    • “Zippo Sliding Scale”: How much Contact / interactivity with customer needed to have
      jurisdiction. Zippo Manuf. Co. v. Zippo Dot Com. Inc. 952 F. Supp. 1119, 1124 (W.D. Pa. 1996).
    • “Effects” The traditional test: infringement aimed at the forum – Panavision Int’l, v. Toeppen, 938 F. Supp. 616 (C.D. Cal. 1996)
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Domain Name Registrants Rights
  • Domain Name Registrants have rights to use a name that suits their legitimate needs and to express opinions.  The law will continue to strike a balance between conflicting rights.
    • Right to warehouse Domain Name for future Sale
    • Right to Express opinion [“Sucks” sites] Bihari Case
    • Right to Comment on a Copyrighted Work
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Branding
  • Trademark is Source Designator
  • Goodwill and Reputation are the represented by the Trademark & Logo
  • Domain Names need Policing
  • ICANN UDRP and ACPA can be used
  • How to Brand: First Class Customer Service
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The Future
  • Dec. Action to Repair UDRP errors:
    • 15 U.S.C. § 1114(2)(D)(v) – ACPA - Reactivation
      •  A civil action to establish registration of a domain name is not unlawful injunctive relief to the domain name registrant, including reactivation of the domain name or transfer of the domain name to the domain name registrant.
    • 28 U.S.C. § 2201  - Declaratory Relief Actions
      • For Declaration use of Domain Name is not unlawful
    • SALLEN v. CORINTHIANS LICENCIAMENTOS LTDA No. 01-1197  U.S.C.A. 1st DIST MASS. (Dec. 5, 2001)
      • Overturned a UDRP-ICANN ADR Ruling to RETURN a Domain Name to a registrant – former Respondent in the UDRP action.
  • More Complexity and NEW gTLDs
    • Intellectual property Audit to turn up potential marks
    • Care in Searching all potential Marks
    • Register in All Places Business Located + International
    • Make them Registrable
    • Obtain URLs early on


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Use Quality Trademark Services
  • Trademark Services are not enough
    • CCH, Thomson & Thomson only can search, provide basic comparisons.
  • Trademark Counsel can analyze, be part of in-house legal team.
  • Much of my business from incomplete Trademark analysis, poor applications for registration.
    • Production company is not a “label” in the sense of printed tag.
    • Applying mark to shirts is not “clothing” class.
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Bottom Lines:
  • Register Trademarks
  • Obtain All permutations of Domain Names
    • “WellsFargo.com” Wells-Fargo.com, wellsfargo.net, etc.
  • Select marks carefully IF they are also to become Domain Names
  • Keep Litigation costs down – plan way ahead – do thorough searches
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