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Chip Rosenthal Wins Unicom Domain Name Case

Seth Schoen writes "As seen last month, Chip Rosenthal (whom many people know for Reply-to Munging Considered Harmful, among other projects) was threatened with the loss of his domain name unicom.com. He's now won in court and will get to keep the domain, at least for the time being."

19 of 170 comments (clear)

  1. Why was there even a court case? by TrollMan+5000 · · Score: 3, Informative

    Mr. Rosenthal secured the domain in 1990. It seemd to be his. How this got that far into the courts mystifies me.

    According to the plaintiff's charges, Rosenthal was being accused of cyberpiracy. Why? It's almost like a child throwing a tantrum when he can't get his way.

  2. Leave him alone... by PoiBoy · · Score: 4, Insightful
    Since he registered this domain way back in 1990, I don't see how this California company has any claim to it. Notice that the company became interested in acquiring the domain around 1998, about the time every company on the planet decided to get online. Seeing that an individual owned the name they wanted, they figured they could throw a few lawyers at the problem and scare the person into giving it up. They thought wrongly.

    Sure, cybersquatting just to extort money out of a company or to otherwise do harm to a company is wrong; in these situations I think companies have legitimate beef with cybersquatters. However, let's not ignore that fact that this guy registered the domain in 1990!

    --
    Sig (appended to the end of comments you post, 120 chars)
  3. Cyber squatters by sweat · · Score: 3, Insightful

    I have never been a fan of companies being able to override people who own domain names. First come, First serve should apply. Especially if the domain name was originally purchased before the company was even formed. A similar example was the newish Minnesota Wild NHL team sued a childrens magazine(titled Wild) even though the magazine was around for years before the team even existed. Crazy.

  4. Now that's irony.. by mythr · · Score: 4, Funny

    He wins the right to keep his page up at that domain, and, within minutes, we bring it back down. Now that's irony.

  5. A rare bit of sanity by sjhwilkes · · Score: 3, Insightful

    Companies should be checking domain name availability before coming up with names, either that or develop a more relaxed attitude to all the different TLD's. - I worked for too many firms that consider 300 odd names their right.

  6. Interesting analysis of "commercial" sites by Masem · · Score: 4, Informative
    While I agree that the case shouldn't have even come this far (first come, first served back in the 90s), I also think the Judge's reasoning on the non-commercial nature of the site are to be noticed. Specifically, the platiffs tried to point out that the site had the authors email, resume, phone, and other ways to contact the author if they wanted to talk about business deals. The Judge summarized that these were all passive, in that no business activity or exchanging of money was done through the site itself, nor the direct selling of a product. (This was even considered in the posting of the resume; the judge disagreed that the author was selling himself to outside companies). Thus, trying to call the site 'commercial' failed, and thus fell out of the traditional cybersquatting situation.

    Unfortunately, this is a limited decision, but hopefully others (like WIPO!) would consider some of this ruling to be reasonable when deciding other domain name battles.

    --
    "Pinky, you've left the lens cap of your mind on again." - P&TB
    "I can see my house from here!" - ST:
  7. He didn't REALLY win--jurisdictional issues by Elwood+Blues · · Score: 5, Informative

    Let me preface this by stating I'm currently a law student (actually in my civil procedure class right now).

    The court did not render a judgment stating he had the right to his domain. Rather, they said that suing in California was not permissible due to a lack of jurisdiction over him.

    There are several ways to establish jurisdiction over an out of state defendant:
    -If Chris had "systematic and continuous" contacts with the State of California
    -If his website was of an ambiguous (courts have a nebulous examination standard) level of interactivity and accessible from California (contacts with California established via the Internet)

    Because they didn't find either of those, the court determined that he couldn't be tried in that court. This does not preclude the plaintiff from bringing a case in Texas against him.

    Basically he just won this battle. It's possible the war is still going on.

    1. Re:He didn't REALLY win--jurisdictional issues by chip+rosenthal · · Score: 5, Insightful
      I agree with your analysis. However it greatly rearranges the playing field, and that helps me tremendously. I won't have to fight a long-distance lawsuit. If they choose to re-file, they would have to retain ($$$$) Texas counsel. (I believe all of their work on the lawsuit to-date has been done with in-house counsel.)

      I think the big value in the Unicom v. Rosenthal decision is that it provides the independent web publisher some peace of mind that some company cannot reach out, claim jurisdiction, and make them fight a long-distance lawsuit. That's very expensive and very difficult.

  8. yeah, this aint over... by jeffy124 · · Score: 4, Informative

    the case was tossed out by the judge because Chip was from Texas, not because he was there first or anything to do with trademarks. This was very similar to what LindowsOS is trying to do with Microsoft. MS wants the case tried under Washington state laws, but LindowsOS is trying to get the case tossed because they havent done any business in Washington.

    At any rate, Unicom Systems Inc will find a way to keep things going against Unicom Systems Development, we'll here more about this in a few months.

    --
    The One Rule Of Chess You'll Ever Need: Don't play someone who carries a kit in their bookbag.
  9. Clarifying the Win by Jim+Tyre · · Score: 5, Informative
    We did win (I'm one of Chip's lawyers, so I can say "we"), but the thing isn't necessarily over yet.

    Chip is in Austin, Texas, but the Plaintiff sued him in Los Angeles.

    When we responded to the Complaint, we made several alternative motions, one being that a court in California lacked personal jurisdiction over Chip, not only because he's in Texas, but also because he does not have sufficient contacts with California to make it reasonable for him to be dragged into court here.

    The Court granted our motion to dismiss for lack of personal jurisdiction. That's a big victory, there's much to be said for the proposition that courts do not have unlimited reach, even when the Internet is involved (think Matt Pavlovich and the California DVDCCA case, for example), but it isn't a ruling on the merits.

    If Plaintiff should choose to file a new action against Chip in Austin, we have plenty of ammunition for arguing the merits of his rightful claim to the unicom.com domain name, but readers should not assume that this win addressed that issue. The Court's ruling is here.

    1. Re:Clarifying the Win by chip+rosenthal · · Score: 3, Informative
      I saw in the complaint that he requested $50,000 for the domain

      Yes, that allegation was in the complaint I deny it.

      You don't have to take my word for it. All of my communication with USI (prior to the cease and desist letter) was by email, and that email is available online. You can read it and decide for yourself.

  10. HAve you noticed by wiredog · · Score: 4, Interesting

    That the corp sueing him apparently didn't go through the ICANN name dispute resolution system? Interesting that they realize that ICANN has no real power in those sorts of disputes. Not that it's any surprise See this story from a year ago for another example of using the courts to avoid/overrule ICANN.

    1. Re:HAve you noticed by FreeUser · · Score: 3

      HAve you noticed That the corp sueing him apparently didn't go through the ICANN name dispute resolution system? Interesting that they realize that ICANN has no real power in those sorts of disputes.

      Actually, ICANN does have power, in that possession is often 9/10 of the law, and an ICANN decision will yank the name and put it in the plaintiff's hands right away.

      What is really interesting is that they chose not to use the ICANN "arbitration" procedure (I use the term in quotes for a reason), particularly in light of the fact that the ICANN "arbitration" procedure is designed to favor the plaintiff. The plaintiff pays for the procedure, chooses the arbiter out of several competitors (obviously the ones who tend to rule for the plaintiff are outcompeting the more fair alternatives), and the defendent has no recourse once the domain name is taken away (aside from a civil suit to get the name back).

      One could speculate either way on why they would go to the courts, rather than use a remedy procedure that costs less and is clearly slanted in their favor. It is interesting, in any event.

      --
      The Future of Human Evolution: Autonomy
  11. The thing.. by Heem · · Score: 5, Insightful

    The thing that bothers me the most about this is how much time and money it cost Chip just to defend himself. How many of us have those resources? If someone came after one of my domains, I'd fight as much as I could on my own, but in the end would probably be forced to give up. Thats what these corporate types want. they have the money and the resources to do this. There needs to be a law to protect US from this behavior.

    --
    Don't Tread on Me
  12. Re:Have they tried by Jim+Tyre · · Score: 5, Informative
    Going through the ICANN dispute resolution system? Have you?

    No, they didn't go through ICANN. (Allegedly) aggrieved domain name owners can either use the ICANN UDRP or go to court, they're not required to use the ICANN procedures first. These folks chose to go to court first.

    As for Chip, he would have no reason to go to ICANN. unicom.com is his domain name, he isn't contesting that the Plaintiff can keep its name, unicomsi.com.

  13. ./ time... by tomknight · · Score: 3, Informative
    I followed the "Reply-to Munging Considered Harmful" link, and after about 20 lines, the page stops loading. Press refresh, and I see a 404....? Huh?

    Try the main page, and I see it now says:

    I am Slashdotted

    Sorry ... this web site is Slashdotted at the moment.

    Here is the Google cache version of my main page.

    Until my new shipment of bandwidth arrives, you may want to visit the Save Unicom.Com web site.

    Okay, the google cache for his main page is at: http://www.google.com/search?q=cache:ta1nhhNpbHMC: www.unicom.com/+&hl=en. If you really want a good read, look at the Save Unicom.Com web site he mentions.

    Tom.

    --
    Oh arse
  14. Re:Not a ruling on merits, but interesting anyway by chip+rosenthal · · Score: 3, Interesting

    Thanks for the support, Dino.

    I think the decision goes beyond interesting, and really will be valuable. The jurisdiction question is an area of the law that needed clarification, and I'm really proud that we were able to do that. This decision will help shield the independent web publisher from "long arm" tactics, that would pull them into a long-distance lawsuit they couldn't fight.

    (By the way ... I was sued in a Federal court, not State court. If they want to come back after me, they are going to have to come to Austin and do it.)

    You are right that there were other matters in question, but once jursidiction was settled they all became moot. Somebody, someday, is going to have to litigate those issues too. (Hey, why you looking at me!!?!)

  15. Priority? by markmoss · · Score: 4, Informative

    If you read through Unicom Systems, Inc.'s first filing, you'll see that they claim to have been using "Unicom" as a trademark since 1989 -- which seems to give them priority, except...

    Lots of other companies have used trademarks including the word "unicom". Rosenthal says he searched the federal trademark registry and found more than 20 registrations besides unicomsi's 3. Or in a search I just ran myself, Thomas Register (http://www.thomasregister.com/, registration required) lists 3 companies whose names start with "Unicom", not including Unicom Systems Inc. There's a maker of industrial air filters in Oregon, a printer in Alberta, and a "LAN products manufacturer" in California. I wonder if that one has heard from Unicomsi?

    IANAL, but it certainly looks to me that, no matter when unicomsi registered their various trademarks, they've never had priority to just the name "unicom", or even to that name in a computer-related market. According to Rosenthal, unicomsi's registered marks are graphic designs including the word "UNICOM" -- that makes the whole mark a valid trademark (assuming the graphics are unique), but it hardly gives them the right to the name itself. And if they did own the name as related to software, still they failed to defend it for 11 years.

    Anyway, this round was only about whether u-si could sue a Texas website in a California court. If u-si wants to hire a Texas lawyer, they can start over again in Texas -- of course, this is more expensive for them, and I'd certainly be amazed if they won in _any_ court on the facts I know of.

    If they do continue in Texas, a suggested settlement: Rosenthal puts their banner ad at the top of his web page "Were you looking for Unicom Systems, Inc., support for legacy...". Not that he couldn't beat them entirely, but it would save time and money.

    The great thing about that decision is that it tends against all the various silly lawsuits claiming that because your web site can be seen, or is mirrored in, or links to sites in some other jurisdiction, you can be yanked into court in a different state or country.

  16. If you have a business domain, get a trademark by Animats · · Score: 3, Interesting
    It's not that hard to get a trademark. It can be done entirely on-line now. Base price is $325.

    Trademarks can be registered on either the "principal" or the "supplemental" register. Trademarks on the principal register can be enforced against others. Trademarks on the supplemental register can't be enforced against others, but prevent others from claiming you are infringing their trademark. If your application for registration on the principal register is rejected, you can often get a registration on the supplementary register, for which the standards are lower. In particular, you can usually get a supplementary register trademark on a commonly used word, which is valuable for domain purposes.

    Either way, you get to use the ® symbol, and you're protected against any trademark-related claims on a domain.