I own a automobile dealership, not real (too embarassed over this mess to say which) but for sake of arguement we'll call it "<no specifics please>". We have been in business for 3 years, however our name "is not" trademarked.
Last week we decided to expand our marketing to the web and were planning on registering the domain name <no specifics please>.
Ironically, today we receive a letter from someone that is telling us that they registered and own the name <no specifics please> and if we want to purchase it from them we can for $1,300.
What should I do? Do I have any recourse? Threaten suit? I feel like I'm being muscled.
Thank you for any help as I'm new to this.
[edited by: toolman at 4:20 am (utc) on May 13, 2003]
Could this person have registered this name as a speculator? Did the current holder buy this name specifically because he felt he could sell it to you at a profit one day? If so, you may have a case, but it will probably cost more than the $1300 asking price to do it. And because you haven't actually registered the trademark, the court would probably side with the speculator, regardless if he bought it for the possible extortion value or not.
If I were you, decide how truly valuable this name is to you. Is it worth the $1300? Instead of yourbusiness.com would your-business.com work instead? Or you could also go with a .net, .org or one of the others. What is currently hosted on this site now? Does he run his own business, which is also called yourname.com in his own state, but feels that selling the name for that price would be worth it?
These are all things to consider.
Jenstar is right on about looking at other names, with hyphens or with other TLDs (.net, .us, .biz, etc.)
Go ahead and register the .net and a hyphenated .com and offer the squatter $300, letting him know that you've registered the other names and if he doesn't accept the offer, you'll publish your site elsewhere...
Good luck, and don't feel too bad. This has been going on for a long time.
What about this though? I have done a little due diligence...it seems that I may be able to get some relief, and maybe a favorable ruling, through ICANN or WIPO, against this person?
I mean after all this guy, registered our name in bad faith and is now trying to sell it to us.
Thanks Again:)
You also have to consider this - are you wanting to take action to prove a point? If so, go ahead and file a claim.
The price point of the domain name at $1300 is probably well-chosen, rather than just a figure out of a hat. It will cost you a minimum of $1500 US to file with WIPO for the domain name dispute (and will cost $4000 if you want to change from a single panelist, to a panel of 3). Most domain disputes seem to be filed through WIPO rather than the few others out there. I know at least one of the ICANN approved companies for domain name disputes is $1150 to file a dispute.
Any way you slice it, it is going to cost you at least $1150 to do it, and there is still the chance you could lose your dispute (which I think there would be a good chance, from what you told me). Not to mention all the prep time, appearing for it, etc. If it were me, I would either just buy the name from the seller, or go and find myself a different domain name to use.
I have the same problem with the .com for my company name but I though stuff it ill buy the .net instead as I do internet stuff.
When it expires I may get it and i've told him I don't care and laughed at him. He got quite upset actually and annoyed that I wouldn't buy it off him. Serves him right really.
Q.1. what sought of letter was it snail mail or email.
Q.2. how would this person know that you were trying to register this domain .. did you contact him .. if so how did you find him .. whois?
Q.3. is your name a generic term or is it your company name ie .. joe blows car sales ..
Q.4. when did this person register the domain name ..
Q.5. were you approached by him with the offer to sell you the name .. or did you approach him asking how much did he want for the name.
There is more .. but these are the essentials .. every name that is not taken / registered is entitled to be registered on a first come first served basis by anyone.
The above questions are relevent to your chances of success under UDRP.
Since the domain was just a start up, I simply registered the .net version and built on that. The .net domain rules all serps.
I do wish I had the .com especially since I did own it and accidentally let the registration lapse. I was on vacation and like a slap in the face, within 1 day it was hijacked and then offered back to me at $880. Like others have said, I started the arbitration route... money, time and more money; so I abandoned arbitration.
These current practices are in the same vein as SPAM. Domain name snatching really has to be stopped. A class in civic duty and social responsibility is in order here.
The registrars should discourage this practice and announce boldly at registration that it is poor netizenship and exhibits a lack of personal integrity. But since their profit is determined by the trading of domain names it is unlikely they will help unless further regulation is threatened.
We have seen very recently what happens to these kinds of people... the no call list that President Bush just signed to law is a prime example.
Certainly speculative domain name buying with the sole purpose of reselling was not the intended result. I hope those responsible for governing this part of the internet will one day realize there is some sort of loophole in the rules and plug it up.
This behavior exhibits a lack of moral conviction, personal integrity, a character flaw and it is just plain wrong. IMO
Jon