IP Matters Spring 2007

Microsoft goes to war against “cybersquatters”

Microsoft has launched a series of lawsuits in the US and Europe against “cybersquatters”, and will urge other companies to help tackle what remains a growing problem on the internet. Microsoft’s initiative will be seen as encouragement to brandholders around the world to take action against cybersquatters.

Cybersquatting is the registration of a domain name based on the trade mark of another business, or one very similar to it, with the intent to profit from it. Cybersquatters may offer to sell the name to the trade mark owner for an extortionate price, or seek to make money from internet traffic accidentally landing on the page.

Cybersquatters are turning to new tactics such as “typosquatting”, where they register a domain name that is a misspelling of a popular brand – such as “micrsoft.com”,“hotmai.com” or “utub.com”. Some typos present enough of a grey area to make them difficult to pursue the perpetrators through the courts. For instance, one enterprising Canadian student, the fortuitously (?) named Mike Rowe, has registered the domain name “MikeRoweSoft.com”. Microsoft was forced to settle the case with him.

The company has however reached a settlement with Dyslexic Domain, a London-based business which was alleged to have registered more than 6,000 domain names, including several targeting Microsoft. Dyslexic Domain will not only hand over the domain names but also the profits it has made from them.

Apple trade mark dispute settled (again)

Apple Corps Limited (Corps), the record company formed by the Beatles, and Apple Computer Inc. (Computer), the US hardware and software company, have settled their longstanding dispute about Computer’s use of its “Apple” logo in connection with its iTunes music download service.

Corps, which also has an Apple logo, had issued proceedings claiming that such use infringed the terms of an agreement it had reached with Computer in October 1991. This claim was rejected by the High Court in May 2006 and Corps had indicated that it intended to appeal.

According to a press release by Computer, they have entered into a new agreement with Corps regarding the use of the “Apple” marks, under which Computer will own all the trade marks related to “Apple” and licence some of them back to Corps.