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Domain name and trademark

Misuse of your domain name

Consequences of the misuse of somebody else's domain name

If you purchase a domain name that carries the name of somebody else’s business, you could be ordered to transfer it to the business owners.  People might purchase a domain name that includes the name of another business for various reasons but they shall always be prepared to be ordered to forfeit the domain by WIPO. Misuse of a domain name might take different forms.

Can you buy a domain name which includes another business name

Is it lawful to use another business name to create a critical website

Is there an example of a case where a person was ordered to forfeit a domain name

What are the powers of WIPO in relation to domain names

Can you buy a domain name which includes another business name

You can buy a domain name that includes another business name in order to either use it yourself in the future or simply because you did not realise that the domain name you have purchased includes a name of a business that already exists.

Some people buy a domain name that uses the name of another business, in order to use the domain name to attract internet users to a website. The website could be about a genuine product or service or it could be about another business, which you might want to criticise or review. Occasionally, you have people purchasing domain names with the name of a business they either worked for or had used its services. The prime reason for doing this is to criticise or defame that business. In this case, it is likely that your actions would be considered a misuse of a domain name.

Domain Name & Business Name Legal Advice FAQ

You can legally purchase a domain name that includes another business's name, whether for future use, unintentionally, or even to attract users to a related website. However, using the domain name to mislead users or to criticise or defame another business could be considered misuse and lead to legal consequences.

Using another business's name in a domain to create a critical website is generally unlawful and may result in being sued for trademark infringement, defamation, or both. The act of misleading people into visiting your website by suggesting it's the official business's site can constitute 'passing off' and you may be legally challenged, even if the business doesn't hold a registered trademark.

In the case of The Inter Continental Hotels Group (IHG) vs. Daniel Kirchhof, WIPO ordered Kirchhof to release 1,519 domain names to IHG. Kirchhof used these domains to benefit his hotel booking business and promote competitor hotels, which was deemed misuse of IHG's intellectual property. This case highlighted that individuals could be compelled to forfeit domain names if they are using them to profit at the expense of the trademark owner's reputation or business.

The World Intellectual Property Organization (WIPO) provides a dispute resolution service for challenges filed by trademark owners regarding the abusive registration and use of internet domain names, known as cybersquatting. WIPO's procedure, conducted online, offers a swift and enforceable decision-making process. WIPO can order the transfer of a domain if it is proven to be identical or confusingly similar to a trademark, owned by a party with no rights or legitimate interests in the domain, and registered and used in bad faith.

An individual might be ordered to forfeit a domain name by WIPO if the domain name is identical or confusingly similar to a trademark owned by another business, the domain owner has no rights or legitimate interest in the name, and it is evident that the domain was registered and is being used in bad faith. This includes using the domain to mislead, defame, or compete unlawfully with the trademark owner, or benefit financially from the trademark's reputation.

Is it lawful to use another business name to create a critical website

In most cases it would be unlawful to use another business name to create a critical website. It is likely that the business whose name you used in the domain name will be able to successfully sue you for either breach of trademark or for defamation or for both. Inducing people to visit your website because they believe they are visiting the actual website of the company you are criticizing could be considered as passing off, or in other words, as an attempt to capitalise on another business’ good name to benefit yourself.

Driving people to your website is an action that is likely to benefit you, even if you don’t sell anything on that website but only use it to create a campaign or to criticise another business. The business does not need to have a registered trademark for you to commit to passing off. An unregistered trademark is as good in most cases for the business to establish the cause of action of passing off.

Is there an example of a case where a person was ordered to forfeit a domain name

A recent example portraying the misuse of a domain name and where an order to transfer a domain name to the business whose name was part of the domain name was made, is the case of The Inter Continental Hotels Group (IHG).

In that case, a German man who gained control over 1,519 domain names was ordered by the World Intellectual Property Organisation (WIPO) to release them to a hotel chain. IHG brought the action after it discovered that domain names that corresponded with its brand were being used by Daniel Kirchhof to profit his internet hotel booking business by offering customers the opportunity to book rooms in hotels that were not connected to the IHG group.

IHG argued that by using its intellectual property, Mr Kirchhof was not only benefiting himself but that he was also promoting competitor hotels. The case confirmed two important issues. First, it is acceptable to bundle together more than one dispute against a single person and deal with the lot in one single case, and second, it was not acceptable for someone to simply use another company’s name in domain names that were intended to benefit them financially.

What are the powers of WIPO in relation to domain names

WIPO, is the World Intellectual Property Organization and among the services WIPO provides is a dispute resolution service for challenges filed by trademark owners in relation to abusive registration and use of internet domain names, commonly known as cybersquatting. This entire procedure is conducted online and results in enforceable decisions within two months. It is probably the cheapest and quickest method to have domain names transferred back to the business owners who own the trademark to them.

Often, WIPO will order the transfer of a domain if the owner is able to show that the name is identical or confusingly similar to terms the owner has rights to, the person who owns it has no rights to the domain name, and the name was registered and is being used in bad faith. If you are aware of a third party misusing your trademark by attempting to attract internet users to promote goods and services competitive with yours, or to defame your business, you might be able to stop them from doing so by asking the WIPO for an appropriate ruling by declaring that there has been a misuse of a domain name which warrants a domain name transfer.

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