What Legal Rights Do You Have Once You Own a Domain Name?
Before you claim a legal right to your domain name, make sure that you have a basis for your claim. Simply registering a domain name does not protect you if another company files a trademark infringement claim. If they hold a legal trademark, you can lose your domain name and even find yourself liable for the owner's legal costs.
A case in point: Ty Collectibles, which makes the popular Beanie Babies collectible stuffed animals, successfully sued a woman who registered the name Beaniecollectibles.com and who then tried to sell the name back to the company.
Not all trademark disputes are cut and dried, however. Many cases turn on whether a person uses a domain name to exploit a trademark holder's brand, or whether a name creates confusion among consumers. A judge recently threw out a case in which the publisher of Archie Comics tried to shut down a parent's website devoted to his 22-month-old daughter, Veronica! If there's any pattern to these cases, it seems to be that websites devoted to noncommercial, nonprofit, and satirical content fare better in trademark disputes than for-profit business sites.
Before you register a domain name for your business, it's a good idea to check the name with the U.S. Patent and Trademark Office (PTO). You can do an initial search yourself on the PTO's website, or you can hire someone to do it for you.
If a name is available and a search doesn't turn up any potential trademark conflicts, it's a wise move to trademark the name yourself. Although you don't have to formally register a trademark in order to have a legal right to use it, registration is the best way to establish a strong claim to your trademark and to insure that others don't infringe upon your rights. Read How to Trademark a Domain Name for more information.
When in doubt, consult a qualified attorney—spending a little money on good advice now could save you a lot of money later.
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