Trademarks are a way for companies and other entities to protect their intangible assets. One of the most important assets to a company is its image, or in other words, the perception of the company through the eyes of the public. In most cases, a company is presented to the public through logos, names, images, symbols, sounds and a combination of any of these. They are usually found on company product packaging or advertisement mediums. These elements can be trademarked and protected

A company or entity may begin using a trademarked item immediately and receive limited protection automatically. Though this protection is useful, it only extends to the local regions in which it is used. Also, trademark infringement is more difficult to prove in court if the trademark is not yet registered with the United States Patent and Trademark Office (USPTO). Once a company registers the trademark with the office and it is approved, it is protected nationwide, and holds more weight in court proceedings.

A company’s trademark rights can be infringed upon in several ways by other companies and entities. The most serious way in which trademark infringement can occur is through the purposeful misleading of customers. If trademarks bear a similar likeness, reasonable customers may mistake one product for another and believe that the two products are associated with one another.

Trademark dilution is another way in which trademark infringement can occur. A trademark owned by a company can be “diluted” by decreasing the trademark’s value to the public and damaging the company’s name. In addition, dilution can occur by diminishing a trademark’s uniqueness in a market. This can happen even if the two products are in completely different areas of commerce.

Unprotectable trademarks are those that have features not covered under United States intellectual property law or trademarks that are improperly used and no longer fall within protection. Trademarks may lose their protection through non-use, when a trademark is no longer used by a company. When a company has their trademark registered with the USPTO, they must prove to the office that they currently use the trademark in their marketing advertisements and packaging. Also, trademarks may become such a commonly used term for describing the product’s general type that they lose their copyright protection.

A domain name is similar to a street address. It is a string of letters, directing users to a specific website on the Internet. They are required to be exact. Websites which are most likely to attract a larger number of customers became more valuable assets to companies.

In the early days of the Internet, domain name holders seized domain names that matched specific trademarks of popular companies around the world. The companies began to file disputes against these domain holders, asking them to give up the domain name because of the trademark in which they owned. 

The courts mostly acted through according to a determination of bad faith. If the domain holder acted in bad faith, the ruling was generally made in favor of the company. If the domain holder was void of bad faith, the decision of the court could be in favor of the domain holder.

Domain name cases were handled through traditional trademark law before November of 1999. Some claims attempted to prove customer confusion

There was no other alternative to the three arguments above and there had been no laws specifically created to handle a trademark domain name legal dispute. At the time, the NSI was responsible for Internet domain name registration, and even though it did have a dispute resolution service, legal controversies were not settled easily. 

As a result, in the event of a dispute, the NSI put a trademark domain name on hold to allow both parties to settle it on their own or through court.

It was not long before ICANN, an organization responsible for Internet domain management, created a uniform dispute resolution procedure that governs trademark domain name disputes. Starting on January 3, 2000, trademark owners were able to enlist the UDRP as an alternative to litigation. The main factor used by the UDRP was to see if the domain holder acted in bad faith.

What is the

With bad faith;

Similar to the distinctive trademark;

Identical to a famous mark of ownership;

Which are protected by law.

The act does not protect against fair use of trademarks or use otherwise protected by the First Amendment.