Surrendering a Domain Name
August 14th, 2008Recently, I read a post on another blog talking about how this poor gent surrendered a domain name he had been using for three years to a corporation claiming to have dominion over a certain phrase…only to have the name snapped up by another party when it expired (not sure if HE let it expire, hoping the corporate types would swoop in and grab it…or if he turned it over to them, and THEY let it expire).
Nonetheless, I penned some “Rules of the Road” for surrendering domains to a corporation. These guidelines assume you do not want to fight their claim, and want to “do the right thing” (careful, THEY don’t necessarily play that way, even if you do). So, WHAT IF you find yourself in this position?
Seven rules to Surrendering a Domain Name to a Corporation:
1). If you have the resources, before engaging in any discussions about surrendering a name, have a chat with a qualified Intellectual Property attorney, who is specifically knowledgeable about the cybersquatting statute. You may not actually be afoul of any law, and may, indeed, have every right to use the name. Even if you do not want to spend the money, do some online research, as there is a good amount of info and caselaw out there surrounding this stuff. Here are a couple links to get you started.
Wikipedia Entry for Anticybersquatting Consumer Protection Act
Law.com discusses limits on jurisdiction for Anticybersquatting Consumer Protection Act
Remember that corporations like to bully people to get them to play ball. A firm claiming to represent 3M Corporation sent me a dozen or more C&D letters over a period of three years for a name I had years ago (3MMC.NET). My contention was that the simple fact that “3M” was PART of the name was not grounds for them claiming rights to that domain (it was a consulting company, and had nothing, whatsoever, to do with 3M products or industry space. I was not acting in bad faith to ciphon off their traffic, or infringe on their name or trademarks. My attorney told me to ignore them completely, but to save ALL correspondence from them). The irony is that, when I closed that company, I offered the name to them and they declined it. Bullies usually only want what they can’t have, afterall.
2). If you are going to surrender a name, make it clear that you want a “We’ve moved” page put on the name for three-six months…and be firm in that. This will give the search engines and frequent visitors a chance to know where you went. Such pages usually have a brief message, and a link to both your new domain, and the trademark holder’s site.
3). Don’t ever let a domain name EXPIRE as an act of surrendering it (chances are about 100% certain that the trademark holder will not be in first position to snap it up, then you’re both out the name).
4). Do not surrender a domain until and unless you have a physical Cease and Desist (C&D), or surrender request letter from the trademark holder’s law firm. This letter should be printed, on letterhead, preferably delivered by Certified Mail, and NEVER by email only. Or, if you have direct contact with the trademark holder, and want to play ball, you can have THEM send you the letter requesting surrender of the name. It does not have to be “all lawyered up,” but you do want/need a formal, written request before you surrender anything.
5). Be sure you have a contact person at the trademark holder company, preferably in the office of the General Counsel, no matter what. You will want to call and confirm that everyone is who they say they are, and has proper authorization to act in this capacity. I once read how a person who happened to WORK at a specific company (in a capacity totally unrelated to IP) got the idea they could use company letterhead and phone lines, looking perfectly “official,” to bully people out of their domains… at which point this scammer would SELL the names to his bosses, with the help of a buddy, for a tidy profit.
6). Once you do have a letter, and a contact at corporate, you should request that they write you a letter (or email) confirming the name of the law firm authorized to handle this matter, if any. I have heard of times where scammers will masquerade as a law firm, or “IP Recovery” firm only to get you to surrender your choicest domains to them–at which point, you’ll never see them again (and the process of protesting that kind of thing is so arduous and smoky, you’d probably let it slide unless it was a hyper-premium name). Thus, if your contact in the General Counsel’s office of Corporation A says “The law firm of Howard, Fine and Howard” is representing us, then you know you can work with Howard, Fine and Howard in good faith in surrendering “corpa.com” to them.
7). If/when it comes down to actually “closing” the transaction, I recommend setting up a new account at your registrar, and pushing the name into that account (still under your control)…THEN you can change the official registrant to the corporation, confirm it with your contact at corporate, then Send them, by certified mail, the login and password of the account containing the domain. This acts as the official “delivery” of the transaction, and provides a paper trail that you have delivered on your part. This letter sould go to the attorney handling the matter (if any), with a cc to your contact at corporate.
The new registrant info should, except in rare cases, be in the name of the trademark holder (XYZ Corporation) at the address of the corporate HQ, and listing a contact name with an email address at the company.
Hope this helps you stay between the white lines on trademark law, but not get bullied or taken in the process of trying to do the “right” thing.
Best,
M
*Note: These are obviously my personal experiences and opinions, and not legal advice. Seek proper counsel before making any business decisions.
