Date:    Tue, 01 Oct 1996 17:09:52 -0400
From:    "Don 'DocDon' Taylor" <docdon@pobox.com>
To:      market-l@mailer.fsu.edu, inet-access@earth.com
Subject: Domain Name "Investors" May Be in Trouble

>> For today's reading leisure in Doctor Don's Waiting Room < <

    One of the people who has "invested" in several domain names
that were trademarked by other firms is in court.

    Dennis Toeppen registered "Panavision.com" in 1995 and established
an Internet site displaying aerial views of Pana, IL.

    When Panavision, based in California, owner of the trademarks
"panavision" and "panaflex" which are used in its movie and TV cameras,
tried to set up their site, they found that Toeppen had alreadly
registered the name. He wanted $13,000 to give up using it, and
quickly registered "panaflex.com" (guess he thought he would have a
repeat customer here).

    Naturally, Panavision went to court. They filed claims in Central
District court for state and federal trademark dilution and infringement,
unfair competition and more. Toeppen filed to dismiss. He argued that
the California court had no jurisdiction over him because he lived in
and took the alleged actions in Illinois.

    (Note that in a previous case concerning the Blue Note, a New York
judge did feel that he had no jurisdiction over a web site and domain
name belonging to a business in Missouri.)

    The court disagreed making three points in supporting their ruling
that they do have jurisdiction:

        1. His out of state conduct "was intended to, and did, result in
        harmful effects in California;"

        2. "'but for' Toeppen's conduct in registering Panavision's 
        trademarks as domain names, Panavision would be able to establish
        an easily located web site and thus would not have been injured;"

        3. jurisdiction over Toeppen comports with "fair play and
        substantial justice."

    The court also found that requiring the Illinois resident to fight a
legal battle in California was not constitutionally unreasonable because
we are in an "era of fax machines and discount air travel" that has
reduced the burden of defense against a lawsuit in distant forums.

    If left intact, this ruling could conceivably have an impact beyond
the domain name situation. But for now it does imply that you may have
to "increase your investment" if you want to "make money fast" with
domain names.

    A more complete article is at West's Legal News today only
http://www.westpub.com/wlntop/10-1-96_WLN_10383.htm


Doc


                       Doctor Don -- Internetist
~   ~   ~   ~   ~   ~   ~   ~   ~   ~   ~   ~   ~   ~   ~   ~   ~   ~ 
             Specializing in the diagnosis, prevention and
              treatment of Internet diseases and maladies.
	docdon@pobox.com			+1.757.877.4992
 ***         Member Virginia Peninsula Chamber of Commerce          ***


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