Legality of registering similar domain names

Are there legal consequences to purchasing a similar domain name?

[csingsaas]

I am wondering about the legal issues involved with purchasing a domain name which uses a competitors legal name in it. The domain I would purchase would be used to create a web page where I try to disuade people from using the competitors service in favor of mine.

Example - let's say I'm selling insurance.

I am thinking of registering a series of domain names such as:

Keyword-BrandX.tld
Keyword-BrandY.tld
Keyword-BrandZ.tld

On each domain I would compare our services and show why we are a smarter choice. Of course I would promote the domains to try to get them near the top of natural search results for their legal name.

Interested in hearing what the consequences of doing this are? Am I setting myself up for a lawsuit?

[edited by: Webwork at 1:09 am (utc) on Mar. 26, 2009]
[edit reason] Domain Forum Charter - A must read for anyone posting [/edit]

[IanTurner]

"Am I setting myself up for a lawsuit"

Absolutely yes - especially if their name is trademarked.

[csingsaas]

Good to know. Let's say I didn't go the domain name route. Instead just created an article on my site and compared my services to a competitor (by name) - any legal issues with that?

[Webwork]

You might benefit from reading this thread [webmasterworld.com], about discussing legal issues.

[kaled]

1) Don't register domain names that contain trademarks, etc. of other companies.
2) Don't name other companies when making service comparisons. Essentially, tell people what the benefits are of your service and what the shortcomings are of typical competitors. Don't make up imaginary shortcomings and if there is only one major competitor, choose your words very carefully.

If you follow these rules (and don't do anything else that's silly) you are unlikely to find yourself in court.

Kaled.