McColo Corp. Offiline
November 13th 2008
11/13/08 Washington Post: Alleged major source of online scams and spam McColo Corp. knocked Offline.
November 13th 2008
11/13/08 Washington Post: Alleged major source of online scams and spam McColo Corp. knocked Offline.
November 12th 2008
New Case - Interactive Nevada website even when combined with Illinois targeted advertising is insufficient to confer jurisdiction upon website owner for injuries occurring in Nevada. Linehan v. Golden Nugget USDC Northern District of Illinois 05 C 7030
April 1st 2008
What is a Trademark? Think of a trademark (or servicemark for services) as a word, phrase, symbol or design the identifies and distinguishes one source of goods or services from another. It is not necessarily the name of your company but the mark that you use to identify your goods or services.
Why Register a mark? In general terms, if you have such a mark and you have used the mark in commerce you already own it. Trademark rights come into being upon use in commerce – not upon registration as many people believe. However, registration with the United States Patent and Trademark Office (USPTO) provides protection in many ways that most people feel are worth the comparatively reasonable expense. The benefits of Federal Registration are:
· constructive notice to the public of the registrant’s claim of ownership of the mark;
Essentially, this means that while you may own the mark in advance of registration, it becomes somewhat difficult to enforce the ownership of your mark against another person if you do not have access to Federal courts to enforce the mark – or at least so that you have the threat that you may do so if necessary. Also, given that registering the mark affords you the “legal presumption” of the ownership of your mark and that your mark becomes publicly searchable by all those that are interested in such things, the likelihood of an unintentional infringement is reduced significantly.
What does it cost to Register a
Can I register a mark before I start using it? Recognize that you may file an application even before you start using the mark. This is called an “Intent to Use” application and is quite common. Once approved you have 6 months to prove your use of the mark. This way, when you have that sudden spark of inspiration for a new product or service name, you can immediately protect the mark so that when you finally start using it your claim will pre-date anyone that came up with the same idea in the meantime. The process typically takes about 8 months so filing an Intent to Use application is not a bad idea if you are just getting started.
Do I need a Lawyer? You do not need an attorney to register your mark. However, we have had many clients come to us after having their application rejected by the Examining Attorney. This can significantly delay and/or complicate your registration. In addition, if you represent yourself, be certain that you comply with all requirements of the trademark statute and procedural rules.
May I use the TM, SM, ® Symbol? Prior to your successful registration you may NOT use the ® symbol. This is a designation for marks that have achieved a Federal Registration only. Up to that point in time you may label marks in which you claim ownership with either TM or SM as long as the use of those designations is not otherwise prohibited in your State.
March 1st 2008
By Jeffrey A. Cohen
This month InternetLitigators has been presented with several issues involving website development and design. We represent both web designers and webmasters regularly so our experience and comments on this issue are intended to address both sides of this deal.
Whether you are a Designer or a Webmaster there are a few things that you should always do with regard to your web design agreement.
Put it in Writing
This may seem obvious but we have been presented with many situations where work was done with out any written agreement in place at all or where such an agreement may have existed but was not signed. There are many terms that should be addressed in advance of any work being performed and the written agreement is the best place to do so in order to avoid conflicts and misunderstandings in the future. The process of negotiating the agreement is an excellent way to ensure that the parties each understand what is being promised. Once things go bad, reaching any agreement to terms becomes far more difficult.
Be sure that the agreement is signed by both parties to the agreement. Keep a copy of the agreement for your reference in the event that you should ever need to refer to it during the course of the project or at any time afterwards.
Read it, Understand it, Negotiate it and THEN sign it.
First of all one should understand that it is typical for a designer to provide the form of agreement for web design services. Typically, the designer will have an attorney draft an agreement to specifically address the services that they provide and the terms that they require. As would be expected, when a web designer client hires an attorney to prepare such an agreement, the terms that are included will most likely favor the client, sometimes strongly and sometimes unfairly.
This is particularly true where the agreement is framed as an on-line click through type agreement and as such it is very likely that in most instances it will be looked at with nothing more than a passing glance. An astonishingly high number of agreements we have seen, particularly the ones that appear somewhat informal, are filled with terms that if you as a client read and understood them should send you running.
Therefore, while it may seem to be an obvious point to remind readers to be certain to read any contract before you sign it – it is necessary because it is not uncommon, particularly for smaller projects to have people tell us that they simply didn’t do so and instead relied upon what they were told by the designer. Unfortunately, this is a poor practice for a number of reasons not the least of which is the fact that it is very common for design agreements to contain a standard provision that says (in not so certain terms) that you agree that anything that you have been told in negotiations by the designer is irrelevant to your agreement and that you agree that you are not relying upon any of the statements made to you by the designer and that the written agreement terms are all that matters.
By way of illustration, we recently were provided with an agreement filled with unfair (and in one instance unlawful) provisions. We made numerous significant changes to the agreement for our webmaster client making the agreement fair and forcing the designer to take responsibility for his work and certain problems that could be created by the designer with his work on this particular project. We had essentially created an entirely new agreement that ran in favor of our client. The client provided the agreement back to the designer and we honestly expected the designer to flatly refuse the new terms. To our surprise, the designer signed the agreement including all of our changes – it seemed as though he apparently didn’t bother reading it!
The point is that where there is a term in an agreement that you do not like, do not be afraid to change it. Remember that you are the customer and the designer needs your business. Be certain that you understand the explanation. If the explanation does not make sense do not sign the agreement. If the designer offers an explanation of the term, put it in the agreement or at the very least ask that it be put in another writing.
As a Designer, if a customer makes changes to your standard agreement make sure that you understand the changes and their effect upon the balance of the document before you agree to the changes. It is much better to learn of a basic disagreement in the initial stage before any work is commenced than it is to learn of any disagreement as to contractual terms later.
For Designers or Webmasters, where there is any term that you do not understand hire an Internet attorney to look over the agreement, explain the effect of the term and advise you of any particular concerns.
There are many issues that should be covered in any web design agreement. The issues that should be addressed depend upon the nature of the work to be performed and should be addressed to any specific situation individually. Some important issues to consider for each side of the deal are as follows:
ISSUES FOR DESIGNERS
1 – Payment Terms
Make sure that they are perfectly clear as to what must be paid when and what happens if the payment is not made. Consider requiring payments in stages of completion of the project. Consider conditioning your obligation to provide deliverables upon final payment.
2 – Deliverables
Consider utilizing a development site where you remain in control of the files but your clients can log in and see the progress of your work. Consider the use of php or other server side code to protect any pre-mature copying of your work. Consider imbedding your company name into the files until they are complete.
3 – Client Participation
Make clear what you expect to receive from your client and when. Condition your obligations upon the completion of the client obligations. If your client will be providing copy, your final deliverable dates should be based upon the date that you receive the information that you need. Confirm the date of agreement, receipt of materials and completion in writing.
4 - Copyright
Consider an agreement that any materials provided by the client are provided with all necessary rights to use them. Consider a strong indemnity provision against any third party claim of any lack of such right. Language such as “work for hire” can drastically change the nature of the rights vested in either party. Consult legal counsel in relation to any language that you do not understand.
5 – Arbitration
Consider an arbitration provision that allows any disputes to be handled without the expense and inconvenience of civil litigation.
ISSUES FOR WEBMASTERS
1 – Pay Special Attention to the Payment Terms
Pay special attention to the payment terms. The services provided can be limited, for example, to a number of hours or a number of pages and they can authorize the designer to perform additional work OVER AND ABOVE THE CONTRACT PRICE and bill you for it. Be certain that you understand EXACTLY what the agreement is going to cost you when all is said and done. Any extra work should be subject to your approval only.
2 – Scope of the Assignment
Be certain that your agreement clearly and accurately states what it is that you expect from the designer. Consider specific reference to the number of pages, any special coding (flash etc), any other services that you expect to be included, any promises that have been made by the designer.
3 – Completion Date
Be certain that there is a clearly stated date that you may expect the work to be completed. Watch out for complicated terms that allow the designer to delay the completion indefinitely.
4 – Final Approval
Make sure that before your final payment is due that you have the opportunity to give final approval of the website. Ideally this approval should be given throughout or in stages so that you can remain involved with the project. If the design or any component thereof does not meet your approval PROMPTLY notify the designer of your exact concerns. Be certain that there is no penalty to you or requirement to pay until the site meets your approval and functions the way it is supposed to on your selected web hosting service provider or server.
5 – Copyright Issues
This can be a complicated issue. In general terms, you want to be certain that you own the site that is completed. Rights less than ownership including a license to use the site are limited rights and may not allow you to use the site or all of its components the way that you want and could subject you to additional fees or costs. An unfair license agreement could force you into an ongoing relationship with the designer. Language such as “work for hire” can drastically change the nature of the rights vested in either party. Seek legal advice where you are not absolutely clear as to your specific situation.
About: Mr. Cohen is a Partner in the Law offices of Chapman, Glucksman & Dean apc in Los Angeles, California. He chairs the firm’s Internet & Technology Practice Group and represents Internet companies Nationwide on all business law issues. He is also the director of InternetLitigators. This Blog neither constitutes legal advice nor creates an attorney client privilege with the reader. Do not post comments concerning specific legal situations. Mr. Cohen can be reached at jcohen [@] InternetLitigators.com.
February 1st 2008
By Jeffrey A. Cohen, Esq.
We receive inquiries quite often from prospective clients wanting form documents to use as Terms of Service to govern the use of their website or inquiring as to whether a set of Terms drafted for one operator site, or worse, simply found on an unrelated website, can be used instead of having terms drafted for the particular site involved. For purposes of this article, Terms of Service include Terms of Service, Terms and Conditions, Privacy Policy, Acceptable Use Policies, Subpoena Policies, UDRP policies, Child User Policy, Copyright Claim Policies, and any other policy or procedure that you have in place for users of your website or the operation of your online business.
While there is no law that requires a website operator to post Terms of Service (other than a Privacy Policy in some instances) your Terms give you the opportunity to set forth the conditions under which you allow the users of your website to purchase your products or services, post content or use and depend upon the information and materials that you provide them. Your Terms are your opportunity to set the expectations of your users in order to avoid, as much as possible, any disagreement about your user’s rights to use your site, your user’s right to depend upon the availability of your site, your user’s need to pay for your site, your user’s right to post content to your site, your right to remove content, and the terms under which you offer any product or service for purchase from your site and the your applicable limitations among many other things.
A website without such terms leaves the agreement between the operator and the user to be gleaned from the nature of the site or kind of transaction which may ultimately be determined to be significantly different than intended by the operator.
In general, posting such terms alone is insufficient. In many instances, securing some evidence of agreement by the user or customer to the Terms is required to successfully enforce them. This is often accomplished by a simple check box next to a statement of agreement to the terms.
Another general rule is that the closer the user is to the actual text of the Terms the greater the likelihood of enforceability. For example, if your user checks a box saying they agree to your Terms of Service but you do not provide a conspicuous, direct link to those terms, any enforcement of the best Terms could be difficult. Where agreement to certain terms is crucial to operations some require not only a link to the terms but they require the user to scroll to the end of the terms before allowing them to indicate their agreement. Other operators require a user to type their “signature” to evidence their agreement to the terms. A signature in that instance can usually be any electronic representation the user intends to bind them to the agreement but typically takes the form of the users name surrounded by slash marks (eg: /User First and Last Name/) This makes it that much more unlikely that a user could argue that they did not understand that they are agreeing to Terms or to exactly which Terms they are agreeing.
For InternetLitigators attorneys, the process of drafting terms of service for any website involves three stages.
1. Interview
2. Investigation
3. Drafting
There is a fourth stage, annual review, where the website policies are updated to reflect changes in policies or procedures as well as any applicable changes in the law.
Some online services offer form agreements for sale and market them as being for use on websites however in our experience each such services are without fail careful to point out that they are not offering legal advice and cannot guarantee the applicability of any form agreement to any particular situation causing one to wonder exactly what value such an agreement provides.
InternetLitigators has written a great many sets of Terms for clients. About half of our assignments in this regard are from clients that already have Terms posted which are either written by the client or adopted from a collection of sources. The other half is from clients that have no posted Terms at all. Either option is perfectly acceptable.
Generally, a set of Terms for a website will take the same amount of time to draft from scratch as it will to prepare from a document created by the client. This is because re-writing is, in general, a slower process. Often, fixing problematic or internally inconstant, inapplicable or ineffective language is more time consuming that simply drafting an agreement from the beginning.
In some instances, the setting and posting of certain terms are required by law.
• An identification of the categories of personally identifiable information that the operator collects from consumers.
• An identification of the categories of third-party persons or entities with which the operator may share that personally identifiable information.
• A description of any process in place for consumers to review and make changes to the information collected.
• A description of the process by which the operator will notify users of any material changes to the policy.
• Identify the effective date of the policy.
Mr. Cohen is a Partner in the Law offices of Chapman, Glucksman & Dean apc in
November 26th 2007
As the year draws to a close, December is our month for annual client reviews. We recommend that all of our clients conduct an annual legal review of their existing policies, procedures and content and, in general, there is no better time then the end of the year.
The following are some of the areas we consider in our review.
1. Review Terms of Service
2. Review Privacy Policy
3. Evaluate Trademarks
4. Evaluate Domain Name Portfolio
While it is generally not necessary to register domain names in all top level domains, collecting the most common ones is an easy way to make sure that you don’t get stuck in a legal battle to get it away from someone that tries to use it. Review your Domain name portfolio from a legal standpoint. Pay attention to your expiring domain names. Strongly consider automatic renewal options. Consider options such as private registration available from your web hosting company.
5. Update Copyright Designations
6. Update Trademark Designations
7. Review UDRP Agent Designations
8. Review Marketing Creative
9. Review Website for IP violations
10. Update your Business Plan
About: Jeffrey A. Cohen is a Partner in the Law offices of Chapman, Glucksman & Dean in
October 30th 2007
This month we have seen several issues arise concerning the use of domain names with respect to the rights of registered trademark owners. Registering a domain name is not the same as registering a trademark and I thought some information as to the difference and how they might interrelate would be helpful. Understanding the difference and taking steps to protect the trademarks that you have some claim to can save you significant aggravation and expense down the line and help you avoid the risk of possibly losing your domain name or your marks.
According to the United States Trademark Act which is also known as the Lanham Act 15 U.S.C. §1127 defines a trademark as follows:
Servicemark is the correct term used for services as opposed to products.
One key to the ability to register a mark is that there must be either an actual use or an intent to use the purported mark in commerce or trade in a manner that indicates the source of the goods and distinguish them from the goods of others. Registering a domain name is most certainly insufficient by itself to qualify for trademark registration or protection.
Furthermore, registering a domain name does very little to secure your trademark rights under the Lanham Act. While you own a trademark upon your use of the mark in commerce, in order to secure your right to protection under federal trademark law you must register your mark with the United States Patent and Trademark Office. This process involves the submission of an application, payment of the appropriate fees which is based upon the number of International Classes of products or services that you offer under the mark. Approximately 6 months from the submission of the application you will receive your first contact from your assigned trademark examiner.
If the evidence that you have submitted in support of your mark is appropriate for the information in your application and your mark is otherwise the type of mark that is able to be registered and there is no prior conflicting use of your mark and there is no opposition to your application then you may be granted publication in the Principal register. Only then can you be said to have registered your trademark. The process takes approximately one year from start to finish.
An attorney is not required for this process. An applicant is responsible, however, to observe and comply with all substantive and procedural issues and requirements whether or not they are represented by an attorney. In many instances even where you feel comfortable making our own filing it may be desirable to employ the services of an attorney who is familiar with trademark matters to greatly simplify the procedure.
Only federally registered trademarks may be designated by the federal registration designation ®. The SM and TM marks are used to designate a claimed trademark right however their use may be governed by the law of your particular state. The federal registration symbol should only be used on goods or services which have been identified in the applicable federal registration.
Federal trademark registration has the following benefits.
With that understood, because of the large and always increasing number of top level domain names and the ease with which they may be registered, the owner of a trademark can often learn that another has either intentionally or unintentionally registered a domain name consisting of the trademark owner’s mark. In general, the owner of a federally registered mark has the luxury of a choice between (1) proceeding to Federal court to secure an order allowing the recovery of the domain name together with monetary or other damages according to proof or (2) proceeding under the Uniform Dispute Resolution Policy (UDRP) developed by ICANN.
Although it is helpful, trademark registration is not necessary to proceed under the UDRP however there can be no award of any damages other than an order to transfer the domain name in question. Under the UDRP an arbitrator or panel of arbitrators can issue a binding order to a registrar to transfer a particular domain name. There are some registrars that do not subscribe to the UDRP which can present certain difficulties when attempting to recover a domain name registered in bad faith.
The proof necessary to prevail in Federal Court for trademark infringement under the Lanham Act is not the same as the proof necessary to prevail under the UDRP. The specific proof necessary is dependant upon the nature of the cause of action which is beyond the scope of this entry. In general, however where you have registered a trademark for certain services (such as web hosting) and another company is offering the same or similar services under a domain name that is the same or confusingly similar you are likely well within your right to not only demand that the company stop the use of your mark but that they may be responsible to pay damages resulting from their use of your mark and that they must turn over the domain name to your control as well.
Often we are contacted by individuals that have received a cease and desist letter from a lawyer representing a trademark owner claiming a violation of trademark law. These individuals often express frustration based upon the misunderstanding that because the trademark owner left the domain name open by failing to register it that they are somehow entitled to some right simply because they have successfully registered the domain name. This is simply not the case. There are many domain names available for registration which are essentially useless to anyone but the owner of the mark.
Before you register a domain name, it would be prudent to examine whether the domain is registered as a trademark, is the type that is subject to registration, or is otherwise in use in commerce by others before you spend too much time and effort getting used to your new domain.
Copyright (c) 2007 - InternetLitigators
July 23rd 2007
InternetLitigators has attended the premier web hosting event in the Country for the third year in a row. This year, HostingCon was at the beautiful Navy Pier in
The merging of Media was an obvious theme and several examples were offered. We even got to see an iPhone obliterated in a blender to illustrate the point of thinking creatively in your marketing strategy.
Viewing Web Hosting as a somewhat ubiquitous commodity necessary only to provide the true products and services in demand by consumers was a common thread in many presentations. This was highlighted succinctly by Richard Rosenblatt of Demand Media in his presentation entitled Next Generation Web: What Lies Ahead for Hosting. What is Web Hosting? asked Rosenblatt rhetorically. Lou Honick of HostMySite prophetically added a footnote to his own comments in the keynote panel discussion reminding the audience that dismissing the entrance of some larger companies into the web hosting market is unwise. Honick suggested that maybe it is the rest of us that should learn something about the products and services that these entities have chosen to offer to the public.
Overall HostingCon 2007 was a valuable opportunity to connect with the Web Hosting industry for educational and business opportunities alike.
June 2nd 2007
As you have probably noticed, our new site was launched
InternetLitigators Staff
May 16th 2007
InternetLitigators has a full service litigation team comprised of attorneys with vast experience in all aspects of commercial and business litigation arbitration and mediation including copyright, trademark, trade secret, employment, domain name, contract, unfair competition, CAN-SPAM Act, DMCA Arbitration and more. We have secured numerous favorable Judge and Jury Verdicts for clients throughout the Nation. We have achieved hundreds of favorable arbitration awards and mediation settlements and remain one of the Nations leading Internet law firms.