 |
|
Do a Trademark Search Before You Buy Domain NameOne of the first steps to starting a site is to buy a domain name. Most people do not realize you need to do a trademark search before you buy a domain name. Trademarks are those symbols that represent something that consumers will note and identify in the world of commerce, to wit, goods and services. Examples of well-known trademarks include the Nike swoosh and the term “Coke” for Coca Cola. If you “infringe” upon one of these trademarks, you can be held liable for a significant amount of money. Domain names, of course, are a different world. The domain purchasing system allows you to buy anything that is not already owned by another purpose. There is no screening for trademarks. As a result, you may intentionally or unintentionally purchase a domain name that infringes upon a particular trademark. Let’s consider an example. Assume I go out and purchase mynikeswoosh.com. As I am writing this article on July 25, 2007, the domain is available. Now assume I spend a couple thousand dollars having a site built out. I also go out and purchase sport apparel inventory to sell on the site. By the time I am ready to launch, I have put $50,000 into the online business. I am on my way down the road to riches, right? Not quite. Once I launch my site, I will receive a particular piece of mail within a month or so. It is going to be a cease and desist letter. The letter will demand I terminate the site because the domain infringes upon a trademark. Whose trademark? Nike, of course. Do I have any recourse? Can I sell the domain to them? No. I am dead in the water. I have to take down the site or face a trademark infringement lawsuit that could result in hundreds if not millions of dollars in damages. The issue of trademarks and domain names is really a clash between real world commerce and virtual world commerce. It is a relatively simple task to go out and buy a domain name. Before you do that, however, you must check to make sure your domain does not infringe upon another’s trademark. If you don’t, you risk throwing away your hard earned money. |
