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Author Topic: Internet domain name and trademark Infringement  (Read 1823 times)
tinman
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« on: 03-07-10 at 01:01 am »

I would like to ask anyone's opinion of an issue my company currently facing.

I have a small company, whose name is similar to a bigger company, and we are in the same type of service business. My company's internet domain name contains all the phrases of the other company's domain name. For example, if the other company domain is www.XYZ.com, my company is www.MyXYZ.com

My domain name was obtained in 2003 and the other company registered a trademark for XYZ.com in 2009. I recently recieved a letter from the other company's attorney demanding us to cease using both my internet domain as well as my company's name. They claimed that my company name and internet domain is trademark infringement and unfair competition to their business.

Do they have rights to demand us to cease use our company name and domain even they registered the trademark after we were using it in our business? What options do I have? Your opinion is highly appreciated!
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DogDayPM 9er9er9er
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« Reply #1 on: 03-07-10 at 01:51 pm »

My domain name was obtained in 2003 and the other company registered a trademark for XYZ.com in 2009. I recently recieved a letter from the other company's attorney demanding us to cease using both my internet domain as well as my company's name. They claimed that my company name and internet domain is trademark infringement and unfair competition to their business.

Bumping to see if someone else wants to jump in here, and it may be that more information is needed.  Noting the mark registration in 2009 for XYZ.com, what about XYZ itself?  I mean, use as the corporate name, not as domain name.  Does your use of MyXYZ.com come before the other company started XYZ?  Or did company XYZ already exist, and did it already have a registered mark in "XYZ"?

Reason I ask is, take a scenario where Whirlpool already existed as an appliance company but had not yet obtained "Whirlpool.com" domain and had not yet attempted to specifically register "Whirlpool.com" as a mark.  They did already have registered "Whirlpool" itself as a mark relating to the provision of home appliances. 

I come along and start a new company, and obtain "MyWhirlpool.com" DN and use it on my new company's portal.  I am providing home appliances.  Then Whirlpool takes note of my use of "MyWhirlpool.com".  Whether or not they ever register "Whirlpool.com", if my use of "MyWhirlpool.com" is likely to confuse consumers into thinking my goods/services come from Whirlpool - then I'm infringing the Whirlpool mark and they will have the right to make me stop.  I don't think their late registration of "Whirlpool.com" really factors in one way or the other.

Appreciate anyone adding to this and/or pointing out where I've oversimplified or gotten things wrong.  And a question - given the length of the OP's use, does the idea of laches ever apply to trademark law, as against a registered user who fell asleep for 6 years?
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tinman
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« Reply #2 on: 03-07-10 at 03:11 pm »

DogDayPM, I really appreciate your input.  Allow me add more information for my case, by using FICTIONAL company name.

ABC financial Inc registered and owned OhioRealty.com as an internet domain and advertised OhioRealty.com as a brand name since 1998. OhioRealty.com is not a famous company like whirlpool, but they are owned by a big financial comany. They did not register either "Ohio Realty" or  OhioRealty.com as a mark before I registered my company named as "Best Ohio Realty, LLC" and obtained the internet domain BestOhioRealty.com in 2003.   ABC financial Inc  then registered OhioRealty.com(R) as a federal-registered trademark in 2009 and their attorney sent us a letter last week saying that they are the only one authorized to use the mark and my domain and company name may confuse consumers.  They demanded us to cease using my company under "Best Ohio Realty" or similar name and internet domain BestOhioRealty.com, otherwise they will file a lawsuit against my company for tradmark infringement and unfair competition.

As we know internet domains are first come first serve. In trademark law, can a later registered domain-name-like trademark make other similar domains infringing?  How an already established company protected its name from a later registered trademark?  Should I hire an attorney to proceed with the lawsuit?  As a small business owner, I can barely afford the fee and damages they demanded if we lose the case in court.   I really appreciate some one can point me a right direction. 
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DogDayPM 9er9er9er
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« Reply #3 on: 03-08-10 at 08:26 am »

ABC financial Inc registered and owned OhioRealty.com as an internet domain and advertised OhioRealty.com as a brand name since 1998. OhioRealty.com is not a famous company like whirlpool, but they are owned by a big financial comany. They did not register either "Ohio Realty" or  OhioRealty.com as a mark before I registered my company named as "Best Ohio Realty, LLC" and obtained the internet domain BestOhioRealty.com in 2003.   ABC financial Inc  then registered OhioRealty.com(R) as a federal-registered trademark in 2009 and their attorney sent us a letter last week saying that they are the only one authorized to use the mark and my domain and company name may confuse consumers.  They demanded us to cease using my company under "Best Ohio Realty" or similar name and internet domain BestOhioRealty.com, otherwise they will file a lawsuit against my company for tradmark infringement and unfair competition.

As we know internet domains are first come first serve. In trademark law, can a later registered domain-name-like trademark make other similar domains infringing?  How can an already established company protected its name from a later registered trademark?  Should I hire an attorney to proceed with the lawsuit?  As a small business owner, I can barely afford the fee and damages they demanded if we lose the case in court.   I really appreciate some one can point me a right direction. 

For clarity, I'm assuming most of the instances above where you use the word "registered" you do not mean federal registration (except the one case where you point that out explicitly). 

Are your fictional examples direct analogies - including use of a geographical name in the marks, and the geographical name being the same for both you and them?  Note these things always turn out to be very fact specific and are seldom cut and dried.  In your shoes, unless I was just going to roll over and play dead, I'd definitely go find me an experienced trademark attorney.  That way I could lay all the facts out exactly as they actually are, and get an informed and experienced opinion.  Even if it turned out to be mostly bad news, it might be worth exploring options.

Here are some general considerations.  If playing in the same sandbox, it looks like a case where there is a local first user (OhioRealty) and a local second user (BestOhioRealty, possibly confusingly similar but not identical mark).  Then, the local first user (OhioRealty) obtained federal registration for OhioRealty.com.  So again we come back to the likelihood of confusion scenario, where a local first user (who now has a federally registered mark) can stop a confusingly similar use.  (Unless the concept of laches might apply after 6 years of co-existing use? - anyone??)

This is in contrast to the situation where the two users are not in the same locality.  There, if one user obtains federal registration, it may have to allow that other user to continue using at least within that other user's own locality, and the federal registrant may actually be barred from bringing its marked goods into that other user's locale.

Another consideration - if your fictional names are direct analogies (?), then the mark is really not more than a description of the services offered combined with a description of the place they're offered.  Note that a mark that's just a description of what is provided normally is tough to federally register.  My understanding is that the applicant must show that the mark has developed "secondary meaning" such that consumers know just by the name/mark that it's not just anybody providing "ohio realty" services, but actually it is that particular applicant who is providing the services. 

So when you speak with an attorney you might want to have a copy of their application file to see how it was they were able to register (hey, maybe the PTO made a mistake- gasp!).  Also, what sort of registration did they get?  There are two registers, "principal" and "supplemental", with the supplemental giving fewer rights to the holder.

From the page linked below, you can click on #2 "search marks" and by searching the mark name find their registration, and copy the serial number or registration number (either will do).  Then on the same page linked below click #5 "view documents" and plug that serial number (or reg. number) into the space provided to pull up their application file.  You can then download all the documents involved in their registration application.

http://www.uspto.gov/trademarks/index.jsp

As usual, I'd be much obliged if anyone reading the above wants to add to it and/or point out mistakes. 
« Last Edit: 03-08-10 at 08:28 am by DogDayPM » Logged

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tinman
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« Reply #4 on: 03-08-10 at 11:32 am »

In my fictional examples, I am using direct analogies, e.g. An adj word(Best)+geographical name(Ohio)+sevice name(Realty). Only OhioRealty.com is federal registration through USPTO.  Both companies are in the same city.  I checked the USPTO website and their registation is "Principle".  My questions are 1) their trademark contains generic name/word(unlike Coca-cola, and Whirlpool), will that exclude any other company using the same generic words by trademark law?  2) will a pre-existed domain name be considered infringing other intellectual property by a later federaly registered trademark. 3) I obtained my company name through the State's proper authorities and protected by common law. When conflicting with trademark law, which one prevail?

Again, DogDayPM, I truely appreciate your professional input. I will look for help from an atternoy, but I would welcome any more comments & input.
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JSonnabend
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« Reply #5 on: 03-08-10 at 01:54 pm »

Trademark rights are first in use, first in right.  If the other party's use is junior to yours, you can fairly safely tell them to take a hike.  If their use is somehow senior to yours, then the strength of your position depends on things like who used what when and where.

Regarding your other questions, generic phrases can never be protected as trademarks.  Be careful what you call "generic", though.   A word like "Apple" may be a mark, but not if you're selling fruit.

Pre-existing domain name to what?  Pre-existing to the other party's trademark use?  To their registration?  To what?

You do not "obtain" a "company name" (in the trademark sense, at least) by creating your corporate entity.  That is a distinct process from registering trademark rights.

- Jeff
« Last Edit: 03-08-10 at 01:58 pm by JSonnabend » Logged

SonnabendLaw
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Dave_Zan
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« Reply #6 on: 03-09-10 at 09:31 pm »

Regarding your other questions, generic phrases can never be protected as trademarks.  Be careful what you call "generic", though.   A word like "Apple" may be a mark, but not if you're selling fruit.

Or at least not for their so-called generic or descriptive meanings?  Smiley
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JSonnabend
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« Reply #7 on: 03-10-10 at 08:12 am »

A generic phrase cannot act as a trademark, period.  That said, a mark's distinctiveness is not analyzed in a vacuum.  To the contrary, a mark is always analyzed in relation to the goods and/or services in question. 

"Apple" is not generic unless you're talking about the fruit.  It certainly is neither generic nor descriptive of electronics.  Same is true for "Blue Bonnet" margarine, "Log Cabin" pancake syrup, "Razr" (i.e. "razor") phones, etc.

- Jeff
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SonnabendLaw
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peter125
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« Reply #8 on: 03-18-10 at 11:27 am »

So using your argument that Apple is trademarked for a computer company but it is okay to use apple to market fruit, if Just Do It is trademarked for Nike as a slogan to sell shoes, can I use justdoitblog.com to provide motivational information for people to act on their desires? I have been having trouble finding information about whether I can use the name without getting in trouble, and it would be helpful if anyone could refer me to another post perhaps.
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JSonnabend
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« Reply #9 on: 03-18-10 at 11:54 am »

Generally, you can use any mark that is not confusingly similar to another mark.  The confusingly similar looks at many things, including the similarity of the marks and the goods/services each one covers.

Furthermore, you can use any word or phrase in its generic sense.  With that in mind, yes, you can use "apple" to sell apples.

- Jeff
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SonnabendLaw
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« Reply #10 on: 03-24-10 at 03:45 am »

I found a fairly good blog post exploring this very issue a little while back, when I was looking at a domain names question for a coursework essay.

Quite long but worth the effort - although the focus is UK law, it will be of interest to anyone in a common law jurisdiction, e.g. US and Canada.

http://trademark.rightguard.net/trademarks-and-domain-names/http://trademark.rightguard.net/trademarks-and-domain-names/
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JSonnabend
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« Reply #11 on: 03-24-10 at 07:30 am »

I'm not sure what "common law jurisdictions" has to do with it.  The substantive law of trademark differs from jurisdiction to jurisdiction, especially in connection with registration rights and practices.

- Jeff
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SonnabendLaw
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