In trouble regarding website..
In trouble regarding website..
Author
Discussion

Kam Racing

Original Poster:

9 posts

222 months

Friday 18th July 2008
quotequote all
I run an online shop selling various parts. Obviously I have my own domain name and various others.

Now I saw that one of my suppliers didn't have a particular web address so I purchased the domain name and redirected it to my site as I want to push sales of their product.

Just received an email from their Group General Counsel stating the following:

[quote]We hereby notify you to stop immediately using the domain name of ************ which is the exclusive property of ************* group. The use of ************ domain name is prohibited as this use constitutes and infringement of our property rights.
[/quote]

any idea where I stand with this. The redirect clearly goes to my own site and I'm in no way mimicking their business. Should I start flapping at this point? as I'm not clear whether I'm doing anything wrong.

Would appreciate some advice or direction as to where I can get info on this.

Cheers
Graeme

m4tt

591 posts

229 months

Friday 18th July 2008
quotequote all
No idea on the legality of it, but offer to sell the domain to them at a super high price...

rich1231

17,340 posts

291 months

Friday 18th July 2008
quotequote all
Kam Racing said:
I run an online shop selling various parts. Obviously I have my own domain name and various others.

Now I saw that one of my suppliers didn't have a particular web address so I purchased the domain name and redirected it to my site as I want to push sales of their product.

Just received an email from their Group General Counsel stating the following:

[quote]We hereby notify you to stop immediately using the domain name of ************ which is the exclusive property of ************* group. The use of ************ domain name is prohibited as this use constitutes and infringement of our property rights.
any idea where I stand with this. The redirect clearly goes to my own site and I'm in no way mimicking their business. Should I start flapping at this point? as I'm not clear whether I'm doing anything wrong.

Would appreciate some advice or direction as to where I can get info on this.

Cheers
Graeme
Id say you are on shaky ground if you have a domain based upon their company name....

mrmr96

13,736 posts

235 months

Friday 18th July 2008
quotequote all
What you're doing is called "cyber squatting". Which is basically buying up a domain name which looks like it relates to another company.

There was very big 'scam' around 5/6 years ago as people were doing exactly what has been posted by another poster above: namely buying the domain name from nominet (or whoever) for the nominal price and then selling it on to the related company for meggabucks.

Nominet clamped down on this, so when new domain extensions are launched (like ".xxx" will be soon) they actually contact the relevant companies and offer them to buy the name before it's put on the open market.

There's a good wikipedia article on it:
http://en.wikipedia.org/wiki/Cybersquatting

And lots of google hits:
http://www.google.co.uk/search?hl=en&sa=X&...

No idea what the legal position for you is. I suggest you have a read around the subject a bit and then take a view on what you want to do next. Bear in mind these things can get nasty.

HTH.

Mattt

16,664 posts

249 months

Friday 18th July 2008
quotequote all
Do you want to piss off your supplier so that they will no longer sell to you?

If the redirect can be shown to generate you an additional £X/pa, can you come to a reasonable valuation and offer it for sale based upon this? Not 'megabucks', but a fair and reasonable figure.

Plotloss

67,280 posts

301 months

Friday 18th July 2008
quotequote all
Look up the Harrods.com case


Batfink

1,032 posts

289 months

Friday 18th July 2008
quotequote all
its not cybersquatting though is it.

Wikipedia definition is
[quote], according to the United States federal law known as the Anticybersquatting Consumer Protection Act, is registering, trafficking in, or using a domain name with bad faith intent to profit from the goodwill of a trademark belonging to someone else. The cybersquatter then offers to sell the domain to the person or company who owns a trademark contained within the name at an inflated price.
[/quote]

there is no bad faith as its being used to promote traffic to the site which is legitimately trading in the product

Mr POD

5,153 posts

223 months

Friday 18th July 2008
quotequote all
So you sell Product A - lets call it Wooza

The supplier has Wooza.com, and you've registered Wooza.co.uk, wooza.fr, wooza.net, wooozaa.wooza.com, (all of which cost money) and made sure that it anyone types Wooza into google, that all your sites comes up, and when the punter clicks on them, it takes you to your main site.

The product you sell is not fake, but they are pissed off because you also offer competitors products.

I know a company that if you type thier competitors names into google, their website comes up first. TOUGH st.

They are stupid. You are legally in the clear. Morally in the clear. They might try to disrupt supply to you.

You should make a goodwill gesture by taking out the MD for dinner and trying to get common ground.

mrmr96

13,736 posts

235 months

Friday 18th July 2008
quotequote all
The supplier doesn't want to pi55 off it's other distributers. Having 'their' domain name redirecting to your website makes it look like you're the 'official outlet' or a 'preferred distributor'.

This should upset the other distributors, which isn't your problem, but they will be banging on the suppliers door asking them to do something about it. The supplier could well make it your problem.

PS - RE the definition of cybersquatting: This is cybersquatting, depending on your definition of 'bad faith'.

thegman

1,928 posts

235 months

Friday 18th July 2008
quotequote all
One other thought. You may guilty of "trading off" which is in breach of the copyright act. You should get legal representation.

sa_20v

4,114 posts

262 months

Friday 18th July 2008
quotequote all
Mr POD said:
They are stupid. You are legally in the clear. Morally in the clear. They might try to disrupt supply to you.
Utter gash - seek legal advice if you intend to try and hold onto said domain. I know of several companies who have arrangements with suppliers and do as you have done - both companies with sole rights to the product in the market designated by the extension (TLD e.g. .com/.co.uk/.eu) and companies with a product sold by competitors in the same market. At the same time, I've seen companies lose contracts, and land up in court - and you wouldn't believe how messy internet legal cases can be.

In your shoes I would have a discussion with the supplier (the issue is unlikely to go away) - surely it is mutually beneficial for both parties for you to continue to sell their products through the domain (even if it is a redirect), than if you hadn't purchased the site and let some deluded spotty sixteen year old SEDO addict plough through part of your advertising budget? Is this an opportunity for you to ask for sole distribution rights?

From a technical POV - I'd like to guess that the domain doesn't actually yield that much traffic anyway, especially if it's a redirect without any optimisation behind it (unless it's ipod.com for example). You'd be better off optimising your own site for the likes of Google etc - get in number one spot on their algorithmic search results, and watch the money come rolling in.

CoopR

957 posts

267 months

Friday 18th July 2008
quotequote all
Not really true Mr Pod. First SEO has nothing to do with the legality of domain names, good SEO on a site can put it top of many google rankings and in fact with blackhat techniques is easy to manipulate the rankings.

I'd say your on dodgy ground. If the company has (for example) wooza.com registered and their have Wooza as a registered trademark then they can certainly claim for wooza.co.uk. They'd be well within their rights to petition the registrar and request the domain be handed over, and I'd imagine they would win.

Your using that domain to direct type in and search traffic to your own site, effectively your trading under their name. It could be argued that you are posing as an official vendor for the product.

Now it gets a bit grey if the domain you've registered is along the lines of thewoozashop.com or buywoozaprductshere.com, you're mearly advertising that you sell those products and not attempting to come across as an official site.

So basically - If you want to keep it and fight with your supplier get legal advice. If not hand it over, either as a goodwill gesture or for a fee depending on the traffic your getting on it.

griffgrog

740 posts

277 months

Friday 18th July 2008
quotequote all
I'd ring them up and ask what they're up to. You've registered the name and are using it to promote their products. Do they want to sell them or not. This happens all the time. Clearly the domain name isn't their 'property'. If they're apologetic about it offer to sell it to them for a reasonable price. If they're not, tell them it's going to be very expensive.

Vesuvius 996

35,829 posts

302 months

Friday 18th July 2008
quotequote all
Kam Racing said:
I run an online shop selling various parts. Obviously I have my own domain name and various others.

Now I saw that one of my suppliers didn't have a particular web address so I purchased the domain name and redirected it to my site as I want to push sales of their product.

Just received an email from their Group General Counsel stating the following:

[quote]We hereby notify you to stop immediately using the domain name of ************ which is the exclusive property of ************* group. The use of ************ domain name is prohibited as this use constitutes and infringement of our property rights.
any idea where I stand with this. The redirect clearly goes to my own site and I'm in no way mimicking their business. Should I start flapping at this point? as I'm not clear whether I'm doing anything wrong.

Would appreciate some advice or direction as to where I can get info on this.

Cheers
Graeme
You're "passing off."

They don't want someone going to a site with their name on and then getting to dela with you thinking that they're dealing with them.

They're right.

Write back and say you genuinely didn't mean to do anything in breach of their rights, and asking what they want you to do.

john_p

7,073 posts

281 months

Friday 18th July 2008
quotequote all
Have you registered "xyz.com" or "buyxyzwidgets.com"

WIPO sided with the guy that bought "OKIdataparts.com" when Oki Data complained, but this was because the guy was actually selling Oki Data parts and not using it to sell competitior products. He also made it clear he wasn't the company itself.

D2001-0903 is the case number. Google it. No idea if that case has been superceded since.


phoenixblend

216 posts

228 months

Saturday 19th July 2008
quotequote all
I know this may seem confusing but you are most definately ok.

I can't vouch for you relationship with your supplier but you have done nothing wrong at all.

This is a common and normal way to sell products online. The supplier may not like it and may try to make your life difficult in other ways but don't be bullied into anything.

I would suggest that unless your supplier is the only people to make the product in question or the market leader then I would consider leaving them if they have acted like this.

The most obvious thing to thin about is why didn't they but their domains? First thing I do for a new company coming to me with a brand is check their domains are available.



heyuk

2,512 posts

221 months

Saturday 19th July 2008
quotequote all
It depends on:

- The domain , .com rules are different from .uk
- If the complainant has rights (trademarks etc)
- Are you passing off as them.

I would not offer to sell it to them, and would take proper legal advice. From the domaining point of view feel free to drop me an email for a quick chat on whats what.

Silent1

19,762 posts

266 months

Saturday 19th July 2008
quotequote all
Go to a lawyer and get some proper advice, there's a lot of contradicting crap in this thread.

I'd believe Vesuvius 996 as it's his job to know the lawwink

Piglet

6,250 posts

286 months

Saturday 19th July 2008
quotequote all
Wow what a mix of views....

IMO, you are not necessarily passing off, if you sell Wooza products and it is clear from your website that you are not Wooza Limited but Joe Bloggs Limited then I wouldn't consider that to be passing off but it would of course turn on the exact detail.

Their holding a trademark for Wooza would allow them to request that the domain name is passed to them and that would be a decision for the relevant authority depending on the level of the domain. You have not done anything wrong by registering it, they were stupid not to and are now trying to scare you off. It could be construed as cybersquatting but again, IMO if you are selling Wooza products and it is clearly JB Ltd on the website I'm not convinced that this is in bad faith, that's just good marketing.

Can you tell how much traffic this brings you? I'd be tempted to tell them to sod off unless they were going to pay a sufficient amount to replace the business it brings into you. The proviso to that would be "how much do you need them as a supplier?" which might alter my response.




pgilc1

40,169 posts

228 months

Saturday 19th July 2008
quotequote all
Mr POD said:
They are stupid. You are legally in the clear. Morally in the clear. They might try to disrupt supply to you.

You should make a goodwill gesture by taking out the MD for dinner and trying to get common ground.
That is one of the most business naive things i have ever read.