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Domain-Name Wars, Rise of the Cybersquatters

CWmike writes "When FreeLegoPorn.com began publishing pornographic images created with Lego toys, Lego acted quickly. "The content available on the site consisted of animated mini-figures doing very explicit things. We were not amused," says Peter Kjaer, an attorney for Denmark-based Lego. Lego didn't go to court. Instead it filed a complaint with the World Intellectual Property Organization, which ruled in its favor. The domain registrar for FreeLegoPorn.com, GoDaddy.com, eventually shut down the site and transferred the domain name to Lego under ICANN rules. But it's not just Lego and Verizon that are suffering. Green energy is a hot topic, so cybersquatters have been targeting wind and solar energy start-ups. And malicious sites can create havoc with a brand's reputation. Cybersquatting activity rose by 18% last year, with a documented 440,584 cybersquatting sites in the fourth quarter of last year alone, according to MarkMonitor's annual Brandjacking Index report. And WIPO cited an 8% jump in dispute filings in 2008, to 2,329 complaints — a new record. Now, ICANN is preparing to open a potentially unlimited number of new top-level domains as early as the first quarter of 2010."

41 of 183 comments (clear)

  1. freelegoporn.com is not cybersquatting by Delusion_ · · Score: 5, Insightful

    freelegoporn.com is not cybersquatting. It's parody. The difference is crucial.

    Just because a rights-holder says otherwise doesn't make it so.

    1. Re:freelegoporn.com is not cybersquatting by Delusion_ · · Score: 3, Insightful

      Trademark infringement should definitely be protected by fair use. Parody is fair use. The courts have not been consistent on this issue, however.

    2. Re:freelegoporn.com is not cybersquatting by morgan_greywolf · · Score: 3, Informative

      Trademarks are certainly not protected by fair use. Fair use is an affirmative defense in copyright infringement cases, not trademark infringement cases. A company that registers a trademark must, by law, defend that trademark in court against all infringers it has knowledge of.

    3. Re:freelegoporn.com is not cybersquatting by _Sprocket_ · · Score: 2, Interesting

      "Fair use" is one of those things you can't really determine until you go to court. Granted - that's sort of the way it is with anything that involves a court. But fair use is nebulous and tends to shift from court case to court case.

      Parody has been held as fair use. But even parody has limits. Ask the Penny Arcade guys about their infamous Strawberry Shortcake strip. American Greetings came after them for use of the Strawberry Shortcake character. Their intent, if I remember right, was to use a popular 80s icon to parody American McGee's treatment of another childhood favorite - Alice in Wonderland. Penny Arcade's lawyer recommended they give in. If the Penny Arcade guys were parodying Strawberry Shortcake, they might have had reasonable footing to start their fight. But as they were parodying American McGee, it didn't give them license to use Strawberry Shortcake under fair use. Again - they could certainly take it to court as you can't really tell how a fair use suit will shake out until you do. But following their lawyers' advice isn't a bad idea.

      Lego porn? I'd expect the issue to be similar. Are they really parodying Lego? Or using the Lego brand to parody something else?

    4. Re:freelegoporn.com is not cybersquatting by Crash+Culligan · · Score: 2, Interesting

      Delusion_: freelegoporn.com is not cybersquatting. It's parody. The difference is crucial.

      Just because a rights-holder says otherwise doesn't make it so.

      Seconded. In fact, I remember another case where the court—wrongly—grabbed a domain name simply because of its resemblance to another site: etoy.com vs. etoys.com. etoy came first, but somehow eToys managed to suck up to a judge and lay claim to etoy.com, however temporarily. It may have had something to do with the fact that eToys thought it had a trademark for a vibrant, useful commerce site while that Johnny-come-earlier was pushing that wishy-washy pinko art.

      This is the sort of thing the judiciary has to consider carefully when looking at a case where domain names rub a little too close together. And with the press continuing for domain names, the situation will only get worse.

      --
      You cannot truly appreciate Dilbert until you read it in the original Klingon.
    5. Re:freelegoporn.com is not cybersquatting by dgatwood · · Score: 5, Informative

      Wrong. Fair use is also a defense in trademark infringement cases. Fair use of a trademark includes things such as descriptive use, e.g. "Similar to Kleenex", use in advertising by resellers, and a whole host of other things.

      The article Fair Use of Trademarks is a good read on the subject.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    6. Re:freelegoporn.com is not cybersquatting by mdwh2 · · Score: 3, Informative

      But trademark law doesn't prevent any use of the word at all - this isn't like patent or copyright law. It only affects commercial usage. After all, I can say Lego Lego Lego here all I like, without being in violation of trademark law - it's only when I sell something called "Lego" that I risk a lawsuit.

      In this case, it's unclear that there website was commercial - given the "free", I'm guessing not.

      Trademark does not - or should not - allow companies to shut someone down merely for using a word. Trademark is intended for a specific purpose, and not to allow companies to own words in general.

    7. Re:freelegoporn.com is not cybersquatting by mdwh2 · · Score: 2, Informative

      Are you seriously suggesting that freelegoporn.com was NOT intended to be a money-making venture?

      Wait - what?

      (Yes, I know that companies can offer things for free in order to make money selling extra, but I fail to see why you're pulling the "seriously?" when there is no evidence to suggest that this was a money making venture. If you know otherwise, provide your reference.)

    8. Re:freelegoporn.com is not cybersquatting by ntk · · Score: 2, Insightful

      I firmly believe that what you say is not true -- you don't have to litigate every trivial instance of your trademark being violated. AFAICS, this is an urban myth that developed from the potential (but usually unlikely) threat of genericisation through overuse, and the utility of claiming it to be the case by IP lawyers.

      I really don't, for instance, believe the Lego porn is going to lead to people using "lego" to refer to any other kind of brick. This is because I don't believe any of Lego's competitors are going to stand up in court and say "Well, *of course* we should be able to refer to our bricks as legos. Did you not see them fail to go after that pornography site that used such obviously fake Lego bricks?" That's why I ask for evidence that what you're saying is true.

      Of course, if you are right, please wait five years, and then start your own lego brick company, citing the lack of any court action against this slashdot post as evidence that the Danish company lost the mark years ago.

  2. IMHO by Jaysyn · · Score: 5, Insightful

    It sounds like LEGO are being IP bullies. If they can do that to FreeLegoPorn.com, they can probably do it to LEGOSucks.com.

    --
    There is a war going on for your mind.
    1. Re:IMHO by 0100010001010011 · · Score: 5, Funny

      penismightier.com? Who will think of the pen companies?
      analbumcover.com? Who will think of the RIAA?
      therapists.com? Who will think if the US Therapy association?

    2. Re:IMHO by jonbryce · · Score: 2, Funny

      If you read the first one as a five letter word + eight letter word, it has nothing to do with pens.

      A bit like the Italian division of a company called Powergen.

    3. Re:IMHO by Arthur+Grumbine · · Score: 3, Funny

      -1 Coming-out-of-the-hole-you've-been-living-in

      --
      Now that I think about it, I'm pretty sure everything I just said is completely wrong.
    4. Re:IMHO by againjj · · Score: 2

      Duh. And the other two are the same way (explicitly listing them, as you seem to have missed the point):
      an-album-cover => anal-bum-cover
      therapists => the-rapists

  3. Down with Domain Resellers! by Blixinator · · Score: 2, Interesting

    "The domain registrar for FreeLegoPorn.com, GoDaddy.com, eventually shut down the site and transferred the domain name to Lego under ICANN rules." So if a domain name uses a trademarked name in an 'offensive' manner, it's perfectly fine to strip ownership of the domain from the person who registered it and then give it to the company whose name was used? - Similar situation from 2003: http://www.nytimes.com/2003/09/04/nyregion/04AMBE.html There are a few domain names I wanted that the damn domain name resellers beat me to, all I need to do is trademark a name that is a slight misspelling of the name and it's all mine! - Don't ruin my plan with your silly logic.

    --
    "The Y chromosome is genetic. The odds are very good that if you are male then your father was too." -Internet Commenter
    1. Re:Down with Domain Resellers! by idontgno · · Score: 3, Funny

      I'm just sick of how cybersquatters have stolen my name! I, a famous and dead Ukrainian novelist, wanted to set up my own blog using my own domain! I'm heartsick that my name is being squatted because of its passing similarity to some search engine! The injustice!

      Signed,
      Nikolai Gogol

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
  4. The way it should be by C_Kode · · Score: 3, Interesting

    They should make it where the price of a domain doubles for each domain you have registered.

    1. $35
    2. $70
    3. $105 ...etc.

    That would raise the annual price of owning two domains to $105 and $210 for three, $420 for four, $840 for five and so on. That keeps the price relatively cheap for people who just want a personal domain or small businesses, but the domain squaters will be rendered out of business for the most part.

    I want to see someone squat 1,000 domains at those prices.

    1. Re:The way it should be by Minwee · · Score: 4, Insightful

      Well, it's a good thing there are 10,000 other domain squatters with very similar names all sharing the same PO box with me. This way we can each just buy one for the lowest price.

    2. Re:The way it should be by bwhaley · · Score: 4, Insightful

      One could argue that this is abusing the domain name system's original intent. To continue your example, why does Ford need taurus.com, fusion.com, mustang.com, etc? They should be using subdomains: taurus.ford.com. mustang.ford.com. The make and model are both instantly more recognizable, as is the Ford brand in general.

      The Internet would be a better place if the marketing people would focus on marketing problems and let the technology people implement solutions.

      --
      "I either want less corruption, or more chance
      to participate in it." -- Ashleigh Brilliant
    3. Re:The way it should be by gurps_npc · · Score: 2, Insightful

      You are obviously not a math major. Doubling 50 times is prohibitively expensive. Try it at 1 cent. 1 =1, 2 = 2, 3 = 4, 4 = 8, 5 = 16, 6 = 32, 7 = 64, 8 = 128, 9 = 256, 10 = 512, 11 = $10 and 24 cents, drop the pennies. so each 10 = x1000. 21= $10,000 (plus change) 31= $10,000,000 (plus change) 41 = $10 billion (plus change) 51 would be $10 trillion (plus change). I doubt ford could pay for 30 domains using this silly idea, even starting at 1 penny.

      --
      excitingthingstodo.blogspot.com
    4. Re:The way it should be by Sophacles · · Score: 2, Funny

      2) Shell companies.

      Fail -- even at those prices big oil could afford it.

      --
      To live till you die is to live long enough. -Lao Tzu, Tao Te Ching
    5. Re:The way it should be by cortesoft · · Score: 2, Funny

      Wow your math sucks. But don't worry, I will teach you math.. and it will only cost you a penny today, and then we will just double the cost every day after that for a month or so.

  5. They should've fought for it by davidwr · · Score: 2, Informative

    As someone pointed out, courts are inconsistent.

    Unless FreeLegoPorn knew they judges they would face would rule against them due to locally-binding precedent, they should have sued to regain the name.

    This is parody.

    If the local judges were likely to rule against them they should have relocated their corporate headquarters to a more judicially friendly venue, picked a new similar equally-"infringing" name, and pre-emptively sued to declare that their use was not a trademark infringement. Then once they won that battle, sue for the old name back.

    My guess is they decided it wasn't worth the expense.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  6. WIPO sucks ass crackers. by Kenja · · Score: 5, Interesting

    Cant afford to send a legal team to Sweden? Then you lose. Company I work for had their domain (and thus their company name) taken away, not because it was being misused or anything like that, but because we couldn't afford to go defend ourselves. Now if you go to the domain there's just a diatribe against us full of false claims and BS.

    --

    "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    1. Re:WIPO sucks ass crackers. by ACMENEWSLLC · · Score: 3, Interesting

      I went through WIPO arbitration. Someone wanted to take one of my domains away from me. I replied with a proper reply and ended up keeping my domain.

      The arbitration goes to an individual or multiple individuals. It really depends on the individual you get. Looking through prior arbitration, I saw how mine could have gone either way.

  7. Citation Needed by kbolino · · Score: 5, Insightful

    "And malicious sites can create havoc with a brand's reputation."

    Apparently, proving this statement is left as an exercise for the reader.

  8. Not FreeLegoPorn, but real cybersquatting. by Adrian+Lopez · · Score: 5, Insightful

    Whether Lego -- which I generally perceive as far too litigious -- was right or wrong in its action against FreeLegoPorn.com, at least that was being used to host legitimate content. What really bugs me is domain owners who buy up a bunch of domain names to extort money out of those with a legitimate interest in them, or those who buy up a bunch of domain names for no other reason than to host advertising pages (which I consider a form of DNS spam).

    --
    "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
  9. Re:I'm not a violent person by JCSoRocks · · Score: 2, Interesting

    I agree. Anyone have any idea how much it costs to take a cybersquatter to court? My band's domain name is currently being squatted on. There are alternatives but nothing that's any good is available. I registered something that's a mediocre replacement at best just as a back up, but it'd be nice to be able get the name I want seeing as how no one is actually using it.

    --
    You are using English. Please learn the difference between loose and lose; they're, there, and their; your and you're.
  10. Domain Names Are So Ten Years Ago... by thepainguy · · Score: 2, Interesting

    IMO the idea of the domain name is so ten years ago. The explosion of TLDs makes it more so, as it's no longer possible to get true exclusivity on a term. In the age of Google and SEO, what matters is the number of inbound links, the naming of file names, and such. Not the domain name. I say this as someone who once made $10,000 by cyber-squatting on entegris.com back in the day (thank you Network Solutions and the ability to reserve a name 30 days before you paid for it or it just lapsed) .

  11. Not really increasing compared to domain names by Rovastar · · Score: 4, Informative

    According to netcraft in the last year there has been about 40% increase in fully qualified domain names out there (includes subdomains not just top level so not a perfect stat but a good indication)

    June 2008 172,338,726 FQDNs (http://news.netcraft.com/archives/2008/06/index.html)
    June 2009 238,027,855 FQDNs (http://news.netcraft.com/archives/2009/06/17/june_2009_web_server_survey.html)

    So really you could say that cyber squatting is decreasing relative to the increase in domain names........

    Not really increasing compared to domain names

  12. Trademark rights do not exclude parody. by spun · · Score: 3, Informative

    Ah, but trademark rights do not protect against parody in the first place. You wouldn't even need to use a fair use defense, if you aren't using the trademark as a trademark on similar products then you aren't infringing the trademark rights.

    --
    - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
    1. Re:Trademark rights do not exclude parody. by morgan_greywolf · · Score: 2, Informative

      It doesn't necessarily matter if it is on similar products or not. There is such a thing as "trademark dilution" and featuring the Lego products in the porn pictures certainly qualifies.

  13. Trademark is not copyright by spun · · Score: 2, Informative

    Are you seriously suggesting that freelegoporn.com was NOT intended to be a money-making venture?

    Eh? Who cares? Was Lego planning on getting into the porn business? No? Then I could market my 'Lego' brand of porn without infringing. Just like Apple Records and Apple Computers can coexist.

    --
    - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
    1. Re:Trademark is not copyright by Pollardito · · Score: 2, Interesting

      Apple Computers and Apple Records coexist because of multiple out-of-court settlements, and the only court ruling appears to be about interpretation of clauses in the first settlement. I don't think you can use that as an example for either side of this argument, except perhaps to say that Apple Computers probably signed their original settlement because they thought they were going to lose.

  14. Evil cybersquatters by tonyreadsnews · · Score: 2, Insightful

    I honestly don't quite get the beef everyone has with cybersquatters. At least not the point where their legs should broken, etc...
    Sure, they may not be making as good a use as you might, but why should that be the determination of who gets to take it away.
    Now, if it is a site that is fraudulent, I can understand that, but that is a different allegation then cybersquatting. I can also understand trademark infringement (to some extent) but this whole "my brand is x so anyone with an x in their domain name should belong to me" seems a little over the top.

    1. Re:Evil cybersquatters by meta-monkey · · Score: 4, Insightful

      The problem is that their activities are contrary to the intended use of the DNS system. The idea is you register a domain name so people can easily find your home page/product/service/university/chess club/whatever. Instead, you have squatters and domain speculators who have bought up, for $10 each, every possible name they can think of that might, some day, be worth something, and they're holding it for ransom.

      Imagine you come up with the name for a business you'd like to start or a product you'd like to sell. It's the perfect name! So clever and unique! And you go to register the domain..and find it's taken. And so are the 18 variations of it you can think of that might work, too. And they're not being used, at all. It's not like somebody else just "got to it first" and is using it to sell their product. No, they're just hoping to extort some money out of someone who actually wants to do something with it. And they want an obscene amount of money. Like $20,000 for a return on their $10 investment. Can you understand how that experience might make you want to break their legs?

      These people aren't doing anything useful, they're not providing any service, they're just dicks.

      --
      We don't have a state-run media we have a media-run state.
    2. Re:Evil cybersquatters by Burpmaster · · Score: 2, Insightful

      They profit without contributing anything to society. They're parasites. Society does not like parasites.

  15. Free Typosquatting Scan Tool With Screenshots by typosquatting · · Score: 5, Interesting

    There's a new, free typosquatting scan tool at aliasencore.com. It shows you all the registered .COM domain names that are one character misspellings of any Alexa top 100,000 site you enter. It also displays screenshots of those typosquatting sites. It's a nifty way to get a quick idea of the rampant growth of typosquatting (which is a subset of cybersquatting). Here's an example that shows the 431 registered .COM domain names that are one character away from google.com.

    Full disclosure: I am Graham MacRobie, the CEO of Alias Encore, Inc. We help companies recover cybersquatting domain names, but we focus solely on "slam-dunk" typosquatting cases, not questionable cybersquatting cases such as the one mentioned in this article.

    1. Re:Free Typosquatting Scan Tool With Screenshots by Chabo · · Score: 2, Funny

      Wow, on-topic spam!

      What's next, on-topic goatse links?

      --
      Convert FLACs to a portable format with FlacSquisher
  16. Re:I'm not a violent person by meta-monkey · · Score: 5, Insightful

    I hear you. I've got a product I'd like to sell, I could think up a dozen decent domain names for the site, and every one of them is taken, and parked. Not being used, just sitting there. I contacted the owner of my favorite, and he wanted $20,000 to sell the domain. I offered $300. I just don't think the system is supposed to work like that. There needs to be some kind of regulation that you have to register a domain with the intent of doing something with it, and not merely speculating on price. The domain name system should not be the New York Stock Exchange.

    --
    We don't have a state-run media we have a media-run state.
  17. Lego is the cybersquatter here. by Anonymous Coward · · Score: 2, Insightful

    Cybersquatters are people/companies who grab domain names and then fail to use them for legitimate sites that match the domain name. If the Lego corporation grabs freelegoporn.com and fails to use it to host free Lego porn, then the Lego corporation is guilty of cybersquatting.