Automakers Race After Alleged Cybersquatters

FRAMINGHAM (02/25/2000) - Ford Motor Co. recently filed suit and won a temporary injunction against an alleged cybersquatter who Ford claims attempted to infringe upon its trademarks, in one of several Internet domain name disputes involving automakers.

Dearborn, Mich.-based Ford contends that Ohio resident Cory Czech attempted to sell 52 domain names, including Ford-quality.com and Lincoln-quality.com, on eBay Inc.'s auction Web site last month. The automaker won a temporary restraining order from the U.S. District Court in Northern Ohio to halt the domain name sales. Ford is also suing another individual to gain the rights to www.sporttrac.com, the name of a Ford utility vehicle.

Citing the federal Anti-Cybersquatting Consumer Protection Act passed last fall, Ford officials claim that by attempting to hawk the domain names on eBay, Czech meets the bad faith intent stipulated in the act. The act protects trademark holders from individuals who purchase domain names with bad faith intent.

Czech also holds domain names that include the trademarks of automakers such as General Motors Corp. in Detroit and DaimlerChrysler in Stuttgart, Germany.

Czech's attorney, Vince Ruffa of Oakar Ruffa and Abood in Broadview Heights, Ohio, declined to comment on the case.

Legal Battles Possible

GM spokeswoman Kelly Cusinato said she applauds Ford's "activism in protection of its trademarks." Cusinato said GM plans to investigate instances where it may be able to recover domains that use the company's trademarks.

Bob McAughan, a partner and intellectual property attorney at Howrey Simon Arnold & White LLP in Washington, said he expects the anticybersquatting law to help resolve domain name disputes quickly. But the law could also spark legal battles over Internet trademark issues where the interests of the parties aren't clear-cut.

One such case involves Nissan North America Inc. in Gardenia, Calif. In December, the company brought suit against an alleged cybersquatter to gain the rights to Nissan.com and Nissan.net. Unlike in typical cybersquatting cases, these domain names are registered to the owner of a business with a similar name: Uzi Nissan is president of Nissan Computer Corp. in Raleigh, N.C.

Uzi Nissan registered the names in 1994 for what he described as Internet service provider and computer reseller businesses. Officials for the automaker claim that the company's case meets the bad faith provision of the anticybersquatting act because Uzi Nissan offered to sell the domain name for $15 million.

But he contends that the high figure was offered in jest. "They want to crush me and get it for nothing. I feel that they are pressuring me to give it up," he said.

More about: Broadview, DaimlerChrysler, eBay, Ford Motor, General Motors, Nissan, ProVision

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