2000 B.C. Intell. Prop. & Tech. F. 110501
WHY DOMAIN NAMES ARE NOT GENERIC: An Analysis of
Why Domain Names Incorporating Generic Terms Are Entitled to Trademark
Protection
Sarah E. Akhtar and Robert C.
Cumbow
fnA
November 5, 2000
I. Introduction
As the Internet
continues to become an everyday part of people’s lives, its widespread use
is giving rise to complex and novel legal issues. In particular, trademark law
is evolving to meet the rapid pace of the Internet. The legal community is
currently analyzing traditional trademark legal principles to determine whether
those principles sufficiently address the issues arising in today’s high
tech society.
In fact, Internet
commerce is the driving force behind much of the evolving trademark law.
Arguably, the appeal of the Internet can be attributed primarily to the
prevalence of electronic commerce. Many Internet e-commerce companies primarily
use their domain name as their company name, service mark, and trademark. For
example, drugstore.com is an online pharmacy; homegrocer.com is an
online grocery store; vitamins.com is an online nutritional source; and
petstore.com is an online pet supply store.
As of the date of
this paper, none of the previously listed companies have attained federal
registration of their service marks. According to the results of a trademark
search conducted on December 17, 1999 using Thomson & Thomson, both
DRUGSTORE.COM and VITAMINS.COM are the subjects of pending applications in the
United States Patent and Trademark Office (“USPTO”). PETSTORE.COM
had not yet filed an application for registration. However, under new office
policies, the USPTO may refuse registration to each company's “domain name
trademark” on the grounds that it is
generic.
[1]
While the USPTO
follows traditional trademark law for determining whether any trademark can
obtain federal registration, “domain named” companies are provoking
much discussion. Under traditional trademark principles, the current policy of
the USPTO is to deny registration to a mark consisting of a generic term
followed by a Top-Level Domain extension
(“TLD”).
[2]¶5
This paper will
explore the proposition that domain names consisting of arguably generic terms
followed by a TLD are still distinctive; therefore, they should still obtain and
enjoy some level of trademark protection.
The discussion of
this controversial proposition requires an understanding of domain names,
traditional trademark principles, and the USPTO’s treatment of domain
names as trademarks. Section II provides background information on domain names
and traditional trademark principles. Section III discusses the USPTO’s
decision to disregard top-level domain extensions when considering whether
trademark registration is available to a mark consisting of a domain name.
Following this discussion, in Section IV, contrary analysis contends that the
USPTO should afford trademark protection to domain names that consist of generic
terms combined with a TLD, and examines the levels of protection the law should
afford them. Finally, Section V explores the possible alternatives.
II. Background Principles
A. Domain Names
Web sites are
designated by Internet Protocol addresses that consist of a series of numbers.
The numerical addresses are then linked to a domain name to make them easier to
remember. Domain names are ordinary words, letters, or numbers that signify the
location of a Web site on the Internet, such as drugstore.com. Domain
names are easily recognizable and therefore, powerful. In e-commerce, name
recognition can be the difference between success and failure. Domain names are
broken into two parts. A TLD is located at the end of the domain name and
designates the source and/or country designation. In drugstore.com,
“.com” is the TLD. Individual countries' TLDs use a period and a
two-character country code (e.g., “.gr” for Greece); but Web site
owners most commonly select one of several globally available “generic
TLDs” (or “gTLDs”). These extensions are short forms for the
field of activity in which the particular TLD was originally intended to be used
– “.com" (commercial), “.net” (Internet services),
“.org” (nonprofit organizations), “.edu” (institutions
of higher learning), and “.gov” (governmental agencies). In
practice, registration of domain names in the “.com,”
“.net” and “.org” TLDs has not been restricted to users
in the appropriate fields. Thus, numerous commercial entities own
“.org” domain names, many nonprofit organizations use
“.com” domain names, and relatively few of the registrants of
“.net” domain names are actually Internet service
providers.
The other portion
of the domain name is the Second Level Domain name (“SLD”)
consisting of the string of words that precedes the TLD. The SLD is unique to,
and identifies, the particular Web site owner. For example, in
drugstore.com, the SLD is “drugstore.” SLDs are assigned on
a first-come-first-served basis, and, more importantly, only one person or
company can have a particular SLD combined with a particular TLD.
Domain names have
become hot commodities. Less than five years ago very few people were aware of
the value in the registration rights to domain names. From famous
people’s names and company names to generic and catchy terms, domain names
have become the coveted item of the 90’s. Companies are paying thousands
of dollars to purchase ownership of certain domain names. For instance, Josh
Quittner, not McDonalds Corp., first registered
mcdonalds.com.
[3] McDonalds
Corp. now owns the domain name; however, according to a later account by
Quittner, he only agreed to transfer the domain name to McDonalds in exchange
for McDonalds’ contributing a certain unspecified sum of money to purchase
computers for a grade school.
[4]
Recently, ECompanies, a Santa Monica, Calif. Internet venture fund, shelled out
$7.5 million to acquire the domain name
business.com from a
Houston media entrepreneur who bought it for $150,000 in
1996.
[5] It is believed to be the
highest price paid to date for an Internet
domain.
[6] ¶10
Domain names have
become part of our everyday life. It is difficult to find a person who has not
“surfed the net.” It is even harder to watch television for a brief
period of time without seeing a commercial for a company with a Web site, or an
Internet company called XYZ.com. On the Internet, virtually every good is for
sale, and every service is available. The public knows that a “.com”
TLD means an Internet business; therefore, a TLD designates a single
source.
Why would a
company be willing to pay such a large sum of money for a domain name that is a
combination of generic terms and a non-distinctive TLD? Do they have poor
trademark counsel, or do domain names create new terms that are capable of
distinctiveness, thus, registrable as trademarks? These are the precise
questions that the legal community is currently considering.
B. Applicable Trademark Law
The purpose of trademark law is to allow goods manufacturers and service
providers exclusive rights to use marks that distinguish their goods and
services from others. This allows trademark owners to prevent others from using
the same or similar marks that create a likelihood of confusion, mistake or
deception. Trademark law’s essence is to prevent consumer confusion as to
the origin or sponsorship of goods or
services.
[7]
Case law
recognizes “four different categories of terms with respect to trademark
protection: (1) generic, (2) descriptive, (3) suggestive, and (4) arbitrary or
fanciful.”
[8] A generic term is
one that refers, or has come to be understood as referring, to the genus of
which the particular product or service is a species. It cannot become a
trademark under any
circumstances.
[9] As explained by
one commentator, a generic term is “the name of the product or service
itself – what [the product] is, and as such ... the very antithesis of a
mark.”
[10] Courts sometimes
refer to generic terms as “common descriptive” names; the language
used in the Lanham Act for terms incapable of becoming
trademarks.
[11]
Genericism had
been a relatively well-settled doctrine in trademark law until the explosion of
the Internet. Traditionally, a term is generic in two ways. First, it is
generic
ab initio, or generic at inception, as when the ordinary meaning
of the term is already the name of the goods or services. Second, the term can
become generic, where it was fanciful or arbitrary at the time of adoption, but
becomes generic through usage.
[12]
This is familiar to many as the fate of such once-strong trademarks as ASPIRIN,
CELLOPHANE, ESCALATOR, and THERMOS. In our own time, owners of such marks as
XEROX, VELCRO, and ROLLER BLADE have had to fight constantly to prevent their
strong trademarks from becoming, through popular usage, generic names for the
products and services they represent.
¶15
If a term is
generic for particular goods and services, then it cannot receive trademark
protection.
[13] Different tests are
often used to determine whether or not a mark is generic. One test for making
such a determination is found in
H. Marvin Ginn Corp. v. International
Ass’n of Fire Chiefs, Inc. In
H. Marvin Ginn Corp., the court
determined that the test for genericism is twofold. First, one has to identify
the genus of goods or services at issue. Second, one must determine whether the
relevant consuming public understands the proposed mark primarily to refer to
that genus of goods or services.
[14]
Other courts rely
upon the “who-are-you/what-are-you” test. “A mark answers the
buyer's questions ‘Who are you?’ ‘Where do you come
from?’ ‘Who vouches for you?’ [b]ut the [generic] name of the
product answers the question ‘What are
you?’”
[15] Under this
test, “[i]f the primary significance of the trademark is to describe the
type of product rather than the producer, the trademark [is] a generic term and
[cannot be] a valid
trademark.”
[16] The
Surgicenters court explained that the ultimate test of whether a
trademark is generic is how a term is understood by the consuming
public.
[17]
Furthermore,
courts have determined that when performing an analysis as to whether or not a
mark is generic, it is imperative to look at the mark as a whole, rather than in
parts.
[18] In
California Cooler,
Inc. v. Loretto Winery, Ltd., the defendant argued that because the generic
terms “California” and “Cooler” could not qualify as
valid marks individually, their combination, “California Cooler,”
was similarly generic.
[19] The
court rejected the argument: “California Cooler's mark is a composite
term, and its validity is not judged by an examination of its
parts.
[20] Rather, the validity of
a trademark is to be determined by viewing the trademark as a whole ... Thus,
the composite may become a distinguishing mark even though its components
individually
cannot.”
[21]
Similarly, in
Committee for Idaho's High Desert, Inc. v.
Yost,
[22] the court held that an
environmental organization’s name, “Committee for Idaho's High
Desert,” was not generic.
[23]
The appellants challenged the validity of that trade name by arguing that it was
generic based on the generic nature of “Idaho's high desert” and
“committee.”
[24] The
court stated that “[t]he district court was clearly correct in evaluating
the genericness of the name as a whole, rather than looking to its constituent
parts individually... The relevant question therefore is whether the entire name
‘Committee for Idaho’s High Desert’ is
generic.”
[25] Clearly then,
both
California Cooler, Inc and
H. Marvin Ginn Corp. as well as
other pre- and post-
Surgicenters cases have announced what could be
described as an “anti-dissection rule” for evaluating the trademark
validity of composite
terms.
[26]
A descriptive
term, unlike a generic term, can obtain trademark protection under certain
circumstances.
[27] Courts often
refer to a descriptive term as being “merely descriptive” (as
opposed to a generic or a “common descriptive”
term).
[28] For example, in the
drugstore business, the terms “drugstore,” “pharmacy,”
and “variety store” are generic because they are the common names
the public uses for those types of establishments. On the other hand, such terms
as DISCOUNT DRUGS, SHOP AND BUY, or FULL SERVICE PHARMACY are descriptive: They
describe the service, or a purpose or feature of the service, but they are not
the common name the public uses to refer to services of that kind. Such
“descriptive” terms may initially be perceived by consumers as
merely descriptions of the services; but “secondary meaning”
attaches when, through continued use, those terms come to be perceived as
trademarks – that is, source indicators, or “brands,” –
rather than as mere descriptions. Although descriptive terms generally do not
enjoy immediate trademark protection, they may be registered as trademarks upon
a showing that they have acquired such a secondary
meaning.
[29] A term has acquired a
secondary meaning if it has “become distinctive of the [trademark]
applicant's goods in
commerce.”
[30] Secondary
meaning can be established in many ways, including (but not limited to) direct
consumer testimony; survey evidence; exclusivity, manner, and length of use of a
mark; amount and manner of advertising; amount of sales and number of customers;
established place in the market; and proof of intentional copying by the
defendant.
[31] ¶20
Suggestive or
arbitrary or fanciful names can obtain trademark protection without showing any
of the above characteristics. These terms are “inherently
distinctive” – that is, they are immediately perceived by consumers
as “brands” rather than as descriptions. Suggestive terms suggest
something about the product, but do not describe it – for example, NIKE
(the Greek goddess of victory) for athletic equipment, or AMAZON.COM (the
largest-volume river in the world) for a large-volume Internet retailer.
Arbitrary terms are real words whose common meaning has nothing to do with the
product or service they represent – for example, APPLE for a record label
or PENGUIN for book publishing. Fanciful terms are terms that have no meaning at
all apart from their use as trademarks: EXXON, XEROX, KODAK – such terms
are the strongest trademarks.
III. The USPTO’s Treatment of Domain Names as
Trademarks.
Trademark
analysis of a domain name has become increasingly complicated due to a recent
USPTO policy created exclusively for trademarks consisting of domain names. The
policy begins: “A mark composed of a domain name is registrable as a
trademark or service mark only if it functions as a source
identifier.”
[32] Section V of
the USPTO examination guide 2-99 states “if a mark is composed of a
generic term(s) for applicant’s goods or services and a TLD, the examining
attorney must refuse registration on the ground that the mark is generic and the
TLD has no trademark
significance.”
[33]
The policy
further states “when a trademark, service mark, collective mark or
certification mark is composed, in whole or in part, of a domain name, neither
the beginning of the URL (http://www) nor the TLD have any source indicating
significance.
[34] Instead, those
designations are merely devices that every Internet site provider must use as
part of its address.”
[35] The
USPTO justifies this by analogizing TLDs to the “1-800” prefix of a
toll-free number.
[36] The policy
states that the average person familiar with the Internet recognizes the format
of a domain name and understands that “http, www, and a TLD” are a
part of every URL just as “1-800” is part of every toll free
number.
[37] Therefore, the USPTO
believes the policy is consistent with traditional trademark law.
The policy poses
a major threat to anyone whose company name, trademark, or service mark consists
of a domain name containing descriptive or generic terms and a TLD. As
currently stated in the USPTO policy, trademarks that are composed of a generic
SLD are not eligible for registration, and trademarks composed of a descriptive
SLD are only eligible if the registrant is capable of distinguishing its goods
or services from others with a showing of secondary
meaning.
[38] Since many domain
names consist of SLDs that are generic, the policy effectively bars them from
trademark protection.
IV. USPTO
Should Analyze the SLD and the TLD when Determining if a Mark is
Registrable
The USPTO’s
policy, although on its face consistent with other office policies, is actually
inconsistent with traditional trademark principles and recent case law. First,
the TLD should be included when analyzing the domain name for trademark
registration. The addition of a TLD can turn a generic term into a source
designator, and although itself non-distinctive, the TLD combines with the SLD
to denote a single identifiable source to consumers. The inclusion of a TLD not
only indicates that the source is on the Internet, but that it is the only
online source doing business under this name. This is true because domain names
are necessarily unique. Once a domain name is registered, no one else may
register that identical domain name; however, domain names that differ by a
single alphanumeric character remain available to others. Second, by analyzing
the domain name as a whole, the domain name is no longer two separate generic,
non-distinct terms, but one composite term that deserves the protection of the
trademark laws. It has long been a principle of trademark law that a mark
formed by combining two or more descriptive words is not itself necessarily
descriptive.
[39] The USPTO should
recognize that the same is also true of a mark formed by two or more generic or
nondistinctive terms, and should embody that recognition in its
policy.
¶25
Under the USPTO
policy, a company such as Petstore.com may not be permitted to register its
company name if its SLD is determined to be generic. Under this policy, an
examining attorney, when analyzing whether PETSTORE.COM is registrable, would
look at the trademark as though the company were trying to register only the
SLD, or “petstore.” The term “petstore” is arguably
generic. Of course, no consumer could possibly identify a source by looking
solely at the term “petstore.”
A. The USPTO Should Consider TLDs Because They are Source
Identifiers
The office policy
is incorrect in stating that TLDs have no source designation significance. The
USPTO states that TLDs are “merely devices that every Internet site
provider must use.”
[40] Every
Internet site provider must use a TLD; however, TLDs indicate a source
designation of the information a person is going to receive from a Web site by
specifying whether the source will be from a foreign country (for example, .gr),
a company (.com), the government (.gov), or an educational institution (.edu).
The policy further states “the average person familiar with the Internet
recognizes the format for a domain and understands that ...a TLD [is]...a part
of every URL.”
[41] If the
average person recognizes that a TLD is part of every URL, then more
importantly, every consumer immediately recognizes that the origin of the goods
or services will be from an Internet source and not a “brick and
mortar” source. Furthermore, based on the TLD, consumers will recognize
the particular source as a company, non-profit, or other source.
It may be argued
that the terms “Inc.,” “Corp.” and “Co.”
also designate companies, yet the addition of one of those terms to a generic
word does not create a protectable trademark. However, corporations are
registered at the state level, and two or more corporations or other types of
companies may coexist with the same name and even in the same type of business.
In contrast, domain names are registered globally, and the combination of any
term, generic or otherwise, with a TLD necessarily designates a single, unique
source.
Moreover, the
USPTO’s use of the analogy to “1-800” is misplaced.
“1-800” denotes a type of phone service. It merely suggests to
consumers that they can make a toll free call. Therefore, the
“1-800” is not significant when determining the source of a service.
Alternatively, by definition, the TLD indicates the source designation of the
product or service as “online”. Although the TLD does not
completely identify the source, the TLD has source-indicating significance and
is a major part of a mark that consists of a domain name; therefore, it should
be considered when the USPTO determines whether the trademark can be registered.
The USPTO must consider the TLD and the SLD in its analysis.
B. The USPTO
Should Consider Trademarks as Whole When Determining Registerability
The main problem
with the USPTO’s office policy is its failure to perform a trademark
analysis of the entire, unitary mark. The court in
California Cooler
determined that it is necessary to look at the mark as a whole, and not in its
parts.
[42] By solely looking at the
SLD in its trademark analysis, the USPTO’s policy is inconsistent with the
precedent set by the courts. Moreover, several courts have adopted the
anti-dissection rule because when determining whether a mark is generic, it
should be looked at as it appears in the
marketplace.
[43] The general public
perceives domain names as composite terms, not as SLDs alone. Thus, the USPTO
policy is contrary to case law because it looks solely at the SLD to determine
if a mark is generic.
¶30
However, when viewed as a whole, the addition of a TLD to a generic SLD
transforms it from a single generic term to a composite term capable of
registration. The domain name when viewed as a whole is distinctive. The name
is not likely to cause confusion among consumers as to the source of a good or
service.
Courts have
determined that the test for genericism is how the term is understood by the
consuming public.
[44] The consuming
public, for example, views the domain name
petstore.com as one composite
term, not as the word “petstore” followed by a TLD. While they
understand the term “petstore” to refer generically to any store
selling pets or pet supplies, they understand the domain name
petstore.com to designate one specific online pet supply retailer.
Therefore, the domain name is not generic. Contrary to USPTO policy, it should
be entitled to trademark protection.
Furthermore, when
domain names are looked at as a whole, they cannot be deemed to be the
“genus or class of which the individual product or service is a
member.”
[45] The addition of
a TLD transforms the generic SLD into a distinctive name signifying an Internet
source of goods and services.
[46]
Genericism is founded on the principle that no one should have a monopoly on a
term that everyone uses to describe certain goods or
services.
[47] Moreover, granting
trademark protection to such a term would effectively remove it from the English
language.
[48] However, if
“petstore.com” were entitled to trademark registration, it would not
prevent others from using the word “petstore,” but would remove only
the term “petstore.com” from the use of competitors. Besides which,
that term is already unavailable to anyone else’s use, due to the
technical reality of the Internet.
Each domain name
can have only a single registrant, who thus acquires, by registration, a de
facto monopoly over that specific domain name. By definition, a domain name
cannot be generic because there could never be another competitor who would need
to – or would be technically able to – call its goods and services
by the same combination of SLD and TLD. There will never be a concern that
another person will ever try to use the domain name when only one person or
entity can have the domain name rights to it.
A simple example
demonstrates this important point. “Vitamins” is a generic word.
It is commonly used to describe nutritional pills. However, Vitamins.com is the
name of an online company that sells nutritional products. Traditionally, terms
that are able to function as source identifiers can gain some level of trademark
protection if they are used as trademarks. Furthermore, no one other than that
company can use that domain name. Thus, the term VITAMINS.COM can be a
distinctive mark that customers identify as a single, unique Internet source for
nutritional needs, and it does not violate the policy behind non-registration of
generic terms. The trademark VITAMINS.COM is recognized by the general public as
denoting an Internet source of nutritional needs. The courts have stated that
the ultimate test of whether a trademark is generic is how a term is understood
by the public;
[49] therefore, such a
domain name should be able to enjoy some level of trademark
protection.
¶35
The USPTO policy
is inconsistent with traditional trademark principles. Under the current
policy, the USPTO would most likely find VITAMINS.COM to be generic. A
generic term, however, is incapable of indicating a source. VITAMINS.COM does
in fact uniquely distinguish a single source. Therefore, VITAMINS.COM should
not be considered generic, and the USPTO policy should be revised to reflect
this.
The trademark
rights of, for example, DELTA AIRLINES and DELTA DENTAL are perfectly secure,
notwithstanding the fact that most members of the public would not know which
– if either – of them could be reached through the domain name
delta.com. On the other hand, the public at large readily recognizes the
trademark PETSTORE.COM as identifying one and only one specific source –
exactly what a trademark is supposed to do – yet this name is
unprotectable as a trademark under the current USPTO policy.
C. Possible Levels of Protection for Domain Names
If domain names
containing SLDs with generic terms are registrable as trademarks, they may not
enjoy the highest levels of protection. All registered trademarks should be
afforded equal protection to assert claims against trademark infringers.
However, domain names that incorporate generic or merely descriptive SLDs may
not be able to enforce protections under Section 42(c )of the Lanham Act, the
Federal Dilution Act, regardless of
famousness.
[50]
Dilution can
occur by the blurring or tarnishment of a trademark.
[51] Injunctive relief is available
to a trademark owner under the Federal Trademark Dilution Act if one can
establish that 1) its mark is famous, 2) the defendant is making commercial use
of the mark in commerce, 3) the defendant’s use occurred after the mark
became famous, and 4) the defendant’s use presents a likelihood of
dilution of the distinctive value of the
mark.
[52] It is impossible for
companies such as Amazon.com to register all of the possible similar domain
names or domain names that incorporate part of its trademark. Therefore, it is
possible for many people to have similar derivatives of the AMAZON.COM trademark
such as
myamazon.com,
gotoamazon.com,
booksatamazon.com,
etc. Since the SLD “Amazon” is arbitrary or fanciful, the
distinctiveness of the SLD “Amazon” is capable of being blurred and
should be afforded greater dilution protection.
A generic SLD
such as “petstore” however, is not unique, and may be more difficult
to protect from dilution. The SLD “petstore” is a descriptive or
generic term that is associated with the sales of pets and pet supplies. The
mark only acquires distinctiveness upon the addition of “.com.”
Since the SLD is generic and not unique or distinctive, the possibility of
blurring does not exist. Joespetstore.com and petsatpetstore.com
may not blur the distinctiveness of “petstore” because
“petstore” itself is a common term and not distinctive. Therefore,
less protection from dilution should be afforded to a domain name consisting of
a generic SLD.
¶40
The Dilution
Statute favors uniqueness, and if a trademarked domain name incorporates generic
terms, it cannot expect high levels of dilution
protection.
[53] It would be against
the public policy embodied by the Dilution Statute to allow trademark owners to
enforce trademark blurring of generic terms. Since blurring is the diminution
of the ability of the mark to uniquely identify its source in commerce, the
generic term may already be blurred through its use by a multiplicity of sources
of varying goods and services. As a result, variations of a generic SLD
probably cannot be blurred because the generic term is already incapable of
distinguishing a single unique source. In other words, registration of the
trademark PETSTORE.COM would not entitle its owners to prevent all other uses of
the term “petstore” as either infringing or diluting. Because the
public perceives “petstore” as a generic term, other uses of the
term “petstore” would not be likely to confuse consumers, and would
therefore not be infringing. Similarly, because the term “petstore”
is already used by multiple sources, and thus does not have a unique
source-identifying capacity that could be diluted or “blurred,” no
action for dilution would lie. While the trademark PETSTORE.COM refers to a
single source, and is readily perceived as indicating that source, the term
“petstore” alone does not, and is therefore already
diluted.
Owners of
“generic domain name trademarks” should receive the benefits of
federal trademark registration and the protections that accompany it; but their
protection should be narrowly limited to only identical or very closely similar
marks – not, of course, to all uses of the generic portion of the mark in
its generic sense. The USPTO could clarify the scope of protection, as it
customarily does with generic or merely descriptive terms, by requiring the
owner to disclaim rights in the generic term alone. For this purpose, the
classic disclaimer language is perfectly clear: “No claim is made to the
exclusive right to use the term 'petstore' apart from its use in the mark as
shown.”
There are adverse
consequences of the USPTO’s existing policy. Federal trademark law
protects companies from unfair competition due to the likelihood of confusion or
deception in the marketplace.
[54]
The USPTO’s policy contradicts this protection. Domain name registration
ensures only that a combination of an SLD and a TLD will be unique. It does not
protect against the use of a confusingly similar domain name. By not providing
trademark protections to companies such as Vitamins.com because it would be
generic under the policy, the law allows a competitor to adopt the confusingly
similar name Vitamin.com. Without a change to the USPTO’s policy,
Vitamins.com has no recourse against this unfair business practice. Such a
result is directly contradictory to the purported goals of federal trademark
law.
V. The Need for an Alternative
It is obvious
that the application of traditional trademark principles to the registration of
domain names poses many difficulties. The drafters of the Lanham Act never
envisioned the explosion of the Internet and the complicated analysis that would
follow. Due to the non-traditional construction of domain names, and their
inherent distinctiveness, there is a need to address the issue of using domain
names as trademarks.
An alternative
solution may be the formation of a new body of law governing Internet domain
names. These laws may simply be an extension of the laws governing domain name
registration, or a new section could be added to the Lanham Act. The use of a
domain name as a company name or service mark deserves some protection. If the
bending of traditional principles cannot afford these protections, new laws that
address these issues should be enacted to protect trademark laws from
distortion.
¶45
The creation of
new law allowing federal registration of domain names as trademarks that are
capable of distinguishing one’s goods and services from another’s
would have many advantages. If the domain name is registered as a trademark,
the USPTO will protect the mark by refusing to register any other mark that the
Trademark Examiner considers likely to cause consumer
confusion.
[55]
Furthermore, a
registered mark provides notice. The registered mark will be easily found in
trademark searches, which will make it less likely that third parties will use a
similar mark for similar goods or services. Finally, a registered trademark
becomes incontestable after five years of continuous use, which provides
prima facie evidence of the validity of the registered mark. It also
confirms the registrant’s ownership of the mark, protects against
counterfeiting, and allows for treble damages in cases of deliberate
infringement – all advantages to which the owner of a "generic domain name
trademark" ought to be entitled, since such marks necessarily point to single
sources.
[56]
Federal
registration of distinguishing marks also benefits the marketplace without harm
to competitors. If the mark is left unregistered, common law protection may be
limited to those areas in which the mark had actually been in use or become
known. This protection may not be sufficient to protect the marketplace –
especially since trademark law so far provides no means of measuring the extent
of common law rights in a mark that has been used on the global Internet. A
later party may innocently adopt a trademark identical or similar to that of
another because it lacked knowledge of the first party’s prior use.
Registration may eliminate this situation by providing clear notice in the
marketplace of the use of a trademark to distinguish that party’s goods.
It therefore minimizes the economic risk of choosing a domain name as a
trademark, expending large sums of money to promote it, and the high costs of
litigation to defend it.
Although the
trademark protection afforded to domain names may be narrower than that of other
marks, the advantages that registration provides are more valuable than no
protection at all. These advantages should not be withheld from those companies
whose domain names, albeit generic, do in fact function as trademarks in the
marketplace.
VI. Conclusion
The law should,
as it purports to, afford trademark protection to trademarks that are capable of
distinguishing their owners’ goods and services from those of others.
Therefore, the law should entitle owners of trademarks that consist of domain
names to federal trademark protection even if part of
the domain name consists of generic terms. Domain names cannot be generic; they
serve as source indicators because the public understands that the TLD and SLD
indicate the source and the origin of the goods or services. Since domain names
give an indication of origin to consumers, they lessen the likelihood of
confusion, mistake or deception, and promote the basic premise of trademark
law.
¶50
The USPTO’s
analysis of trademarks should be governed by precedent set by case
law.
[57] Presently, the USPTO
performs a trademark analysis only on the
SLD.
[58] Therefore, if the SLD is a
generic term, the USPTO refuses registration on the basis that a generic term is
not registrable.
[59] This analysis
is flawed because case law mandates that trademarks be looked at as a whole, and
not in parts.
[60] Furthermore, case
law requires that a trademark analysis be performed on the mark that consumers
view in the marketplace. In the marketplace, consumers look at domain names as
a whole. Since consumers recognize domain names as source indicators, under
traditional trademark principles, domain names should always be entitled to
trademark protection. It is illogical to conclude that a distinctive,
recognizable domain name should not be considered for trademark registration.
Further, when
looked at as a whole, domain names cannot be generic under the traditional
trademark principles even if the SLD is a generic term. Because domain names
can be inherently distinctive and capable of serving as source identifiers,
domain names are entitled to federal registration.
Although domain
names consisting of generic terms should be entitled to federal registration,
some federal protections will be lessened. It would be against public policy to
allow a trademark owner to assert dilution claims against every domain name
registrant whose domain name comprised part of a trademark that consisted of a
generic SLD. If, however, the claim were for tarnishment because inferior goods
or services were associated with the trademark, protection should still be
available.
When Congress
adopted the Lanham Act, it certainly did not envision the issues accompanying
the Internet and domain names. Domain names are distinctive; when used in
commerce as trademarks, they deserve some protection. New laws are necessary to
address these new issues so that traditional trademark principles are not
distorted and the spirit of the laws is not minimized.
Notes:
[±] Sarah E. Akhtar is a
first year associate at the Seattle office of Perkins Coie, LLP. Her areas of
emphasis are securities and corporate finance. She would like to thank Bradley
T. Fox and Alesia L. Pinney. Robert C. Cumbow is chair of the Intellectual
Property Team at Graham & Dunn, PC in Seattle, Washington.
[1] United States Patent and
Trademark Office Examination Guide No. 2-99,
Marks Composed, In Whole or in
Part, of Domain Names (visited Sept. 29, 1999)
<http://www.uspto.gov/web/offices/tac/notices/guide299.htm USPTO Examination
Guide 2-99>.
[3] Joshua Quittner,
Billions
Registered, 2 WIRED #10, October 1994, at 50.
[4] B.A. Nilsson,
How to Get
Your Own Domain Name (visited Dec. 15, 1999)
<http://cnet.sphere.ne.jp/Guidebook/Domain/index.html#top>.
[5] Peter Loftus,
Ecompanies
Pays $7.5 Million For Domain Name ‘Business.com’ (December 1,
1999) <http://www.business.com/news.html>.
[7] See
King-Seeley Thermos
Co. v. Aladdin Indus., 321 F.2d 577 (2d Cir. 1963).
[8] Surgicenters of America,
Inc. v. Medical Dental Surgeries Co., 601 F.2d 1011, 1014 (9th Cir.
1979).
[9] Id. (citing
Abercrombie & Fitch Co. v. Hunting World, Inc., 537 F.2d 4, 9-10 (2d
Cir. 1976)).
[10] 2 J. THOMAS MCCARTHY,
TRADEMARKS AND UNFAIR COMPETITION § 12:1[1] (4th ed. 1997).
[11] Park 'N Fly, Inc., v.
Dollar Park and Fly, Inc., 718 F.2d 327, 329 (9th Cir. 1983),
rev'd on
other grounds, 469 U.S. 189 (1985).
[12] Bayer Co. v. United
Drug Co., 272 F. 505 (S.D.N.Y. 1921).
[13] Park ‘N Fly,
469 U.S. at 194.
[14] H. Marvin Ginn Corp. v.
International Ass’n of Fire Chiefs, Inc., 782 F.2d 987 (Fed. Cir.
1986).
[15] Official Airline
Guides, Inc. v. Goss, 6 F.3d 1385, 1391 (9th Cir. 1993) (quoting 1 J. THOMAS
MCCARTHY, TRADEMARKS AND UNFAIR COMPETITION § 12.01 (3d ed.
1992)).
[16] Anti-Monopoly, Inc. v.
General Mills Fun Group, 611 F.2d 296, 304 (9th Cir. 1979).
[17] Surgicenters, 601
F.2d at 1015.
[18] Filipino Yellow Pages,
Inc. v. Asian Journal Publications, Inc., 198 F.3d 1143, 1146-52
(9
th Cir. 1999).
[19] California Cooler, Inc.
v. Loretto Winery, Ltd., 774 F.2d 1451 (9th Cir. 1985).
[22] 92 F.3d 814 (9th Cir.
1996).
[24] Committee for Idaho's
High Desert, Inc. v. Yost, 92 F.3d 814, 821 (9th Cir. 1996).
[26] Official Airlines
Guides, Inc., 6 F.3d at 1392 (noting that under this rule, "the validity and
distinctiveness of a composite trademark is determined by viewing the trademark
as a whole, as it appears in the marketplace").
[27] Park ‘N Fly,
469 U.S. at 190.
[30] Abercrombie, 537
F.2d at 10 (quoting 15 U.S.C. § 1052(f)).
[31] See 2 J. THOMAS
MCCARTHY, TRADEMARKS AND UNFAIR COMPETITION § 15:30 (4th ed.
1997).
[39] California Cooler,
774 F.2d at 1455.
[43] Official Airlines
Guides, Inc., 6 F.3d at 1392 (noting that under this rule, "the validity and
distinctiveness of a composite trademark is determined by viewing the trademark
as a whole, as it appears in the marketplace").
[44] Surgicenters, 601
F.2d at 1015.
[45] California Coolers,
774 F.2d at 1455.
[46]Park ‘N Fly,
469 U.S. at 194.
[47] See CES
Publishing Corp. v. St. Regis Publications, Inc., 531 F.2d 11 (2d Cir.
1975).
[49] Surgicenters, 601
F.2d at 1015.
[50] Lanham Act § 42(a),
15 U.S.C. § 1124(a) (2000).
[51] See Avery
Dennison v. Sumpton, 189 F.3d 868 (9
th Cir. 1999).
[52] Lanham Act § 43(c),
15 U.S.C. § 1125(c) (2000).
[54] 15 U.S.C. §
1125(a).
[56] 15 U.S.C. §§
1051 et seq.
[57] See California
Cooler, 774 F.2d 1451;
Union Carbide Corp. v. Ever-Ready Inc., 531
F.2d 366, 379 (7
th Cir. 1976),
cert denied, 429 U.S. 830
(1976) (holding that words which could not individually become a trademark may
become a trademark when taken together);
Estate of P.D. Beckwith, Inc. v.
Commissioner of Patents, 252 U.S. 538, 545-46 (1920) (stating that
“[t]he commercial impression of a trademark is derived from it as a whole,
not from its elements separated and considered in detail.”);
H. Marvin
Ginn, 782 F.2d 987.
[60] See supra cases and
text accompanying note 57.
© 2000 Sarah E. Akhtar and Robert C.
Cumbow. Published with permission of the copyright holder.