Domain name ruling favors small businesses.
Published:
16 September 1999 y., Thursday
In a significant win for small businesses on the Net, a federal judge has ruled that a registered trademark, even when held by a well-known company, does not automatically entitle its holder to
own the corresponding domain name. The decision, made public last weekend, is a major win for a single-employee consulting firm called Clue Computing, which owns the domain name Clue.com.
Hasbro, the multibillion-dollar toy maker and manufacturer of the mystery board game Clue, claimed rights to the Net address in a costly legal battle launched more than three years ago. The
decisions run contrary to common perceptions that a trademark held by one group automatically trumps a rival_s rights to own the corresponding domain name. They come as a division within the Internet Corporation for Assigned Names and Numbers (ICANN)-the nonprofit that oversees the Net_s core functions--is forging a new policy to resolve disputes over domain names. The decisions demonstrate just how difficult it is to balance the rights of small domain name owners and those of large trademark holders.
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