Microsoft Sues under ACPA

[Brett Lewis]

FYI,

Microsoft filed three lawsuits this week against different individuals or entities that had registered hundreds of domain names that included Microsoft's trademarks. Microsoft sued under the Anticybersquatting Consumer Protection Act, which carries potential damages of up to $100,000 per domain name. This marks the first time that they sued solely for cybersquatting, and the company stated that it was doing so in response to a flood of new infringing registrations.

There are many postings on the board about registering domain names that contain famous trademarks. I think Clint Eastwood summed up the risk tolerance equation best in the poignant and timeless words of Dirty Harry: "Do you feel lucky, punk? Well, do you?"

http://news.com.com/2100-1030_3-6108326.html

Brett E. Lewis
Lewis & Hand, LLP
www.lewishand.com

 

[maroulis]

Brett I noticed most of the guys they sued are LLCs... What's the worst that can happen if indeed evicted?

 

[GoPC]

Money invested gets lost. Domains are surrendered. Individually, they walk away. LLC is toast. Bankrupt.

That's about it.

GoPC

 

[maroulis]

that was my point... all they have to do is set-up another LLC "sell" domains then go bankcrupt...

 

[Brett Lewis]

If the trademark holder can pierce the corporate veil, they can reach the assets of the individual and hold them accountable directly for the acts of the LLC. Generally speaking, piercing the corporate veil requires a showing that the LLC was a sham, used solely to shield an individual from liability for engaging in wrongful conduct. The specific elements of what it takes to pierce the veil vary from state to state, but can include not observing corporate formalities, undercapitalization, co-mingling of personal and corporate funds, using the corporation to commit a legal wrong, and the like.

It is a misconception that simply setting up an LLC will protect individuals from liability, especially if the purpose of the LLC is to violate federal law.

Brett

 

[maroulis]

thanks for great insight... I assume they must have had generic domains in their a/c if yes they should be ok if not I guess as you stated they're in for lots of $$$$

 

[SouthernTn]

so basically.. If they have proof of them doing other stuff *legit* stuff under their LLC which has nothing to do with the domains in questioning, they're safe from that even happening I assume?

 

[actnow]

Even the best run corporations can be easily pierced if you throw enough money to prove they did something wrong.

And, Microsoft has the deep pockets to do it.

If they want to get you by using the U.S. federal courts, they will.

What about if the corporation is a foreign/offshore corporation?

 

[octobus]

A foreign corporation is any business entity set-up outside the US.

To sue one, you would need to pursue legal action in the juristdiction where the business has been incorporated. Alternatively, you'd go after its assets located, if any, in the US.

However, if the person behind the company resides within the US and has a corporation setup in a foreign juristdiction (outside the US). In this case we are talking about offshore in its correct definition. If Microsoft is able to discover the person who owns/runs the offshore corporation, they can probably sue the person itself in the US for any wrongdoings of the offshore corporation.

I'm not a lawyer or account so this is only a layman's interpretation of a very complicated area of expertise.

 

[jberryhill]

To sue one, you would need to pursue legal action in the juristdiction where the business has been incorporated.

No.

There is so much folklore about jurisdictional issues, that it is hard to know where to begin.

In general, you can sue any business in any jurisdiction where it does business.

In general, a corporation that is being used as a personal instrumentality of an individual to violate the law is going to be disregarded as a vehicle for avoiding individual liability.

 

[Dave Zan]

And some of you guys wonder why there's one based in Kenya and another in
Panama? :-D

 

[RoToHead]

What is the basis to show Anticybersquatting Consumer Protection Act violation and the benefit using ACPA compared to action under Trademark infringement law. I believe the five chosen examples were also "domain names that included Microsoft's trademarks"?

Thanks for the explaination!

 

[denny007]

And some of you guys wonder why there's one based in Kenya and another in
Panama? :-D

According whois on my TM domains I am in Congo

 

[Fearless]

According whois on my TM domains I am in Congo

I'm in Outer Mongolia and I move my hut every few months.