Need your opinion on trademark infringement

10 replies
3+ years ago I started a website that contains the name of a resort, which at the time, did not have a trademark for the name of the resort. I get affiliate income by promoting the resort from the resort.

Now I get a letter demanding me to shut down the site because of the use of their trademarked name.

I did a check of the trademark and they applied for their trademark 6 weeks after I got my domain name, built the website, and started promoting the resort. At the time there was no affiliate marketing offered.

So, what should I do?

I can't fight this in court - the legal fees will outweigh the affiliate income.

I'm leaning towards asking to be grandfathered in since I did not violate their trademark when I opened my website. I'm just praying they will go along with that. In the meantime I'm starting to port over the website to a new website and get ready to SEO it if they decline my request.

I get thousands of hits a day to my website and have spent a lot of time and money building it into a resource that my readers depend on.

Any opinions will be welcomed - thanks....
#infringement #opinion #trademark
  • Profile picture of the author axus_auto
    If you have proof of your registration date, then it shouldn't be a problem.

    I think you should show them the proof and offer to put a disclaimer on your website. If this is not enough, you should ask your domain registrar for help? I'm sure they have a live chat or something. If it doesn't help, then maybe you should explore some cheap legal options.

    That said, I do not have any experience in this. I'm sure plenty of warriors here will be able to help you
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  • Profile picture of the author sbucciarel
    Banned
    You would need the advice of an attorney on this one. No one else could give you that kind of advice here. I would not correspond with them regarding this until I knew what your legal standing is. Look up Kindsvater here on WF. He's an attorney.
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  • Profile picture of the author davezan
    Originally Posted by EricThor View Post

    3+ years ago I started a website that contains the name of a resort, which at the time, did not have a trademark for the name of the resort.
    How do you know they didn't have a trademark that time? Trademarks do not
    have to be registered to exist, especially if someone started using a name or
    so as a "common law" trademark to sell a product or service.

    Of course, it's their burden to demonstrate exactly when and how. If they are
    prepared to do that, then you might as well be ready also.

    As suggested, better talk to a lawyer instead.
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    David

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    • Profile picture of the author Kay King
      You need an attorney - but that doesn't mean you have to fund a full court battle.

      An attorney experienced in trademark law can advise you of your rights about the time period of registration. He may also be able to send a letter in legalese to the company to defend your registration date if he thinks it is your best option.

      Asking for a favor (to be grandfathered) is not a good strategy without first obtaining a legal opinion. Taking legal advice from a forum is not useful, either:p

      kay
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  • Profile picture of the author LB
    Just because they registered it after you had the site does not mean much. Obviously, they were in business (i.e. trade) before that. Unfortunately, the only real answer is to talk to an attorney.
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    • Profile picture of the author kindsvater
      A few educational issues, even though we do not know the domain names or what the websites have on them - and that information is what ultimately the outcome of these disputes will hinge on.

      It also unclear when the affiliate program began. That should have necessarily given notice of the website to the trademark owner.

      And we know money is an issue, which is why the OP is posting here. So I'm not providing legal advice for this particular situation but discussing issues in general.

      There are two general types of lawsuits a trademark owner could bring.

      One is a domain dispute. A UDRP action. There is no statute of limitations for this and it is a quick process. No damages can be awarded. Only transfer of a domain. Quite often defendants simply don't bother with a defense and they lose the case and domain. But it costs them nothing.

      Second is a federal trademark infringement / cybersquatting action. There is no federal statute of limitations for this but a state law may apply to limit the time for filing. Damages can be awarded. Sometimes significant damages and attorney's fees. These cases are rarely filed due to the huge expense involved. This can be filed regardless of the outcome of a UDRP action.

      In addition to the statute of limitations, there is an equitable doctrine called laches. This means if you sit around, delay, and years later decide to sue for trademark infringement, the court can dismiss the case because of the harm to the other person caused by the delay.

      3+ years is borderline. If the affiliate program has been in place for years, and the resort would see where traffic is coming from, then they could have a difficult case.

      Finally, as I've said in countless posts before, having a trademark does not give the owner monopoly rights preventing any use in a domain.

      The purpose of a trademark is to avoid consumer confusion. The idea that any domain with a trademark in it is verboten is one of the biggest misconceptions I see.

      But of course, it also depends on how risk adverse you, and in cases like this, if a merchant has an affiliate over a barrel if the affiliate wants to remain an affiliate.

      Here is a UDRP case worth reading:

      Decision

      There:

      1. The domain consisted of a trademark.
      2. The domain was being used by a retailer.
      3. The trademark owner filed a domain dispute get the domain.
      4. The retailer did not defend.
      5. The trademark owner still LOST because the retailer had a legitimate interest in referring to products it sold and the website was being used in good faith.

      I have not yet seen a case dealing with an affiliate website, but this is very similar. Typically the affiliate caves to keep their affiliate relationship. (And then the merchant often cancels their relationship anyway).
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      • Profile picture of the author EricThor
        Thank you kindsvater so much - I really appreciate your opinion.

        I'm not going to fight this and spend the next 5 weeks bringing up the website in question under a new domain name and then shutting it down at the end of June. I will start SEO's in a day or so and hope to be back to page 1 of Google by the end of June.

        Thanks again for taking the time to help me...
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  • Profile picture of the author Tom Brownsword
    I'd also take steps to ensure that you can prove copyright on your current site. If they are suddenly interested in this alleged trademark infringement, it wouldn't surprise me if they tried to grab the domain name and put your exact site up just to cheat you out of your affiliate commission.

    A bit cynical, perhaps, and I hope I'm wrong, but just in case, make sure you can prove copyright (at which point you could file a DMCA complaint if they did do it).
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  • Profile picture of the author mologic
    Whatever you do, don't respond to the letter directly.
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    • Profile picture of the author EricThor
      Thank you so much everyone that replied - I appreciate your input.

      I'm rebuilding my website under a new name and start SEO early next week.

      I'm not going to contact the lawyer, since no reply was asked of me. I'm going to forward the old name to the new name on the last day of June and wait for them to contact me with particulars on how to transfer ownership - if they even do that.

      Thanks again,
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