The .ME registry just sold toyota.me for the whopping price of $90,025.
Not only is it the highest price ever paid for a .me it is agoing to be a litigation nightmare for the new owner.
We all expect that Toyota.me will draw a federal lawsuit or a WIPO action in the near future.
If Toyota waits say a year and then files a federal lawsuit against the registrant, they will ask for damages including all money the registrant made from use of the domain.
My question is then, why not sue the registry as well?
I mean the registry is putting $90K in their pocket from the sale of this domain.
The registrant will probably make less than $100 in a year from parking the domain.
So if the trademark holder wants to go after the “deep pockets” as we say in the legal game, that would seem to be the registry.
A couple of weeks a ago a court seemed to indicate that a registrar might be liable for allowing its client to register a large number of trademark infringing domains through an automated registration process. The case Verizon California, Inc. v. Navigation Catalyst Systems, Inc., highlights some of the potential liablity that registrars might face in the future.
I know that the registry response would be something along the lines, that Toyota could have applied for their .me name in the trademark period and by not doing so the domain became available to the general public.
Yet registrants of such trademark names in the past for new extension have lost their domain using the same argument (see the Narmia.mobi case).
So the courts have long held that just because a trademark holder does not take advantage of the trademark period for a new extension and register their domain, does not entitle anyone else to do it.
So again I ask, If the registrants of these trademarked domains are going to get sued, why not the registry?
If I was an attorney for Toyota, i would be suing to get the name from the registrant and suing the .me registry for the 90K back as well.
The registry is no more entitled than a registrant from making money on a trademarked domain.
If I was the attorney for toyto
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27 responses so far ↓
1 Rob Sequin // Aug 10, 2008 at 12:34 pm
I find it hard to believe that someone who can write a $90k check for a domain would buy toyota.me. What a stupid investment and now this is news for .me.
Flowers.mobi set the pace and tone for .mobi and toyota.me just might set the pace and tone for .me.
My guess is that Toyota could care less about the .me extension and I say good for them.
Do they really think that someone will type in toyota.me? Probably not.
Do they think that their consumers will be confused buy toyota.me? If so, not many.
This is a worthless domain and if this is the best name that the speculators can bid up then this is a useless extension.
Sorry but I still see no reason to speculate in .me and I use the word speculate, not invest.
No one is investing in .me unless they plan to develop their .me domain.
2 David J Castello // Aug 10, 2008 at 12:45 pm
I don’t think it will make $100 a year in parking revenue.
This sale is so stupid it sounds like a publicity stunt.
3 Tony Lam, DMD // Aug 10, 2008 at 1:30 pm
I was thinking with the $90K pricetag and the clear TM violation, the buyer can’t be a domainer but maybe a Toyota car dealer thinking this is a clever online name for his/her business.
It will be good to be an IP lawyer in a few years is all I can say.
4 Ray Neu // Aug 10, 2008 at 2:53 pm
Hey guys,
Who was the buyer of pepsi.me? Even though it only sold for $255 it still would be a blatant trademark violation.
Is this the same issue, but on a smaller price scale?
5 gregb // Aug 10, 2008 at 4:09 pm
Of course there are a few areas where a website can be used legally. For example I believe that if you use it as a site critical of the trademark holder then it has been held to be a fair use of the domain. I’m not a lawyer but I did speak with a lawyer once about a domain I own and that seems to be OK.
I suspect if a domain like that is parked with some pay per click ads on it then it fails some test of intent.
Regardless, my point being that if I can legally use toyota.me as a site critical of Toyota policies and/or practices then the registrar has a right to sell it to me.
6 Ben Wilks // Aug 10, 2008 at 4:34 pm
What if Toyota are about to release a ‘Toyota Me’ campaign and they just put the name in an agencies default to keep it under the carpet a little longer. Ultimately it’s between Toyota and the new domain owner. Agree with the registry being accountable, however, might be more to it. Also agree that it’s better to report it than assume that it’s all koser. Time will tell I suppose!
7 Snoopy // Aug 10, 2008 at 5:47 pm
There is zero chance that the bidding was legit on that name, it will be one of those sales that never happens. The name isn’t even worth $50.
8 Rob Sequin // Aug 10, 2008 at 5:54 pm
You are probably right and if this is the “big sale” to kick of .me then .me is DOA.
9 MHB // Aug 10, 2008 at 7:17 pm
Ray
Yes on a lesser scale all these domains are a problem regardless of the price, however at 90K this one is much more of a problem
10 Domainer News - Daily updates from the Domain Industry » Post Topic » Toyota.Me Sell for 90K: Why Shouldn’t a Registry Be Liable for Profiting From the Sale of Trademark Infringing Domains? // Aug 10, 2008 at 7:19 pm
[...] Full story here: http://www.thedomains.com/2008/08/10/toyotame-sell-for-90k-why-shouldnt-a-registry-be-liable-for-tra... [...]
11 MHB // Aug 10, 2008 at 7:20 pm
Guys
There were 110 bids on this name. That could be 2 bidders with 55 bids or 50 or more actual participants.
As far as .me doing it on purpose, I see no possibility of them doing it with this name.
12 MHB // Aug 10, 2008 at 7:30 pm
Let’s not forget that Baidu.me sold last week for over 10K
13 SEN // Aug 10, 2008 at 8:02 pm
Michael, I agree very troubling, a few other names that have sold thus far that could have “TM” implications; tyco, yamaha, starbucks, ducati, disney, porsche, myspace, etc.
14 Michael // Aug 10, 2008 at 9:30 pm
Very strange sale to say the least.
15 MHB // Aug 10, 2008 at 9:49 pm
Michael
Strange but if registrants can get sued for registering these domains why cant the registry that is putting 90K in their pocket
16 El extraño caso de Toyota.me // Aug 11, 2008 at 4:55 am
[...] estas horas la noticia ya está muy extendida por la Red: Toyota.me ha sido vendido a través de la subasta premium del registrador .me por $90,025, convirtiéndose así en el dominio .me más caro hasta la [...]
17 Enrico S. // Aug 11, 2008 at 6:53 am
It should not surprise anyone that there are still domainers out there who have little or no understanding of the UDRP or trademark law. We get calls every day from people who register domains for which there is no non-infringing use possible who say “But GoDaddy let me register it!”
We run two blogs dedicated to legal issues relating to domain names. The UDRP and ACPA are part of the foundation of domaining. Any domainer who doesn’t understand these laws gets what they deserve, an adverse decision under eh UDRP.
This sale won’t go through once the buyer realizes the error of his ways.
18 owen frager // Aug 11, 2008 at 7:23 am
In 6-8 months when you see what Apple transforms me.com into, the me registry will be packing it in. Which leads me to this AdAge piece this morning that I blogged about.
The article directly attributes Obama’s success to KEYWORD “ME” which makes Apple choice of ME.com, as the cloud computing base camp that will morph into the mother of all social networks- worth a price that few could understand. It will kill Facebook and MySpace the way iTunes killed Napster. Because people are willing to pay for value and things priced as free start with a stigma of cheap and unworthy.
No surprise that Obama is offering to “text ME” his VP choice in advance of public notice:
http://fragerfactor.blogspot.com/2008/08/obama-iphone-vp-vip-com-be-first-to.html
19 My Choices: Targeted Traffic Award Nominations at Conceptualist.com, By Sahar Sarid // Aug 11, 2008 at 8:16 am
[...] waves all year long on his blog, from auction ethics, standing strong behind the ICA, to discussing many issues no other domainer would talk [...]
20 My Choices: Targeted Traffic Award Nominations - Domainly // Aug 11, 2008 at 8:19 am
[...] waves all year long on his blog, from auction ethics, standing strong behind the ICA, to discussing many issues no other domainer would talk [...]
21 MHB // Aug 11, 2008 at 10:14 am
So Owen what are you saying, that Toyota.me is a bargain at $90K?
22 MHB // Aug 11, 2008 at 10:58 am
Enrico
I am familiar with your blog.
The question I would love you to give me your opinion on is why shouldn’t Toyota sue the registry, which in this case, assuming the sale holds up, is putting 90K in their pocket selling an obvious trademark domain as well as the registrant
23 Enrico S. // Aug 11, 2008 at 12:07 pm
MHB: I agree that there is some potential liability here. As you might imagine, the law in this area is less than clear, and courts from various jurisdictions are not necessarily consistent. I am certain the registry would have defenses, but there are theories of liability for contributory infringement etc that might persuade the right judge. It is kind of like selling a stolen car.
24 MHB // Aug 11, 2008 at 1:19 pm
Enrico
Thanks and agree
25 Domainer Blogs » Blog Archive » My Choices: Targeted Traffic Award Nominations // Aug 11, 2008 at 2:57 pm
[...] waves all year long on his blog, from auction ethics, standing strong behind the ICA, to discussing many issues no other domainer would talk [...]
26 Domainer Blogs » Blog Archive » Toyota.Me Sell for 90K: Why Shouldn’t a Registry Be Liable for Profiting From the Sale of Trademark Infringing Domains? // Aug 11, 2008 at 3:05 pm
[...] Article Source « Beware of My Henchman [...]
27 Damir // Aug 11, 2008 at 7:25 pm
Toyota.me sold for 90 k - makes NO sense to me - trademark violation - but then again maybe a Toyota dealership in Montenegro bought the domain name - let’s see who the new owner is
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