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WORKING
WITH THE WEB:
DEVELOPING
YOUR INTERNET ANTI-PIRACY PROGRAM
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Disclaimer
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I. INTRODUCTION
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In the United States alone, over 83 million adults, representing
40 percent of the population over the age of 16, have access to
the Internet. In 1997, United States Internet shopping grossed three
billion dollars in sales, a figured that almost tripled in 1998
with world-wide Internet sales at twenty-one billion dollars. Internet
shopping in the United States alone is expected to reach thirty
billion dollars by the year 2000 and three hundred billion by 2002.
Though Internet retail sales accounted for only 5% of all retail
sales in 1998, its percentage is growing every year. For instance,
the County of Los Angeles spends $627 million every year on office
supplies and equipment – in 1999, 80% of that purchasing will be
done via the Internet. By the year 2000, United States companies
are expected to make 7.9 percent of their supply purchases online
with high tech companies expecting to purchase 10.2 percent of their
supplies online.
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II. INTERNET IS BOUNDLESS YET CONGESTED!!
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Because of the Internet boom, by the year 2000, it is estimated
that 56 percent of the United States firms will be selling online.
Though the Internet is essentially boundless, it is already becoming
congested. For instance, if you are searching for stereo speakers,
Alta Vista will return 16,142 "matching" sites. If you limit your
search to "Bose speakers," you are down to 668 matching sites and
if you limit your search to "Bose stereo speaker" you are down to
fourteen matching sites – none of which sell Bose speakers. Every
day, as thousands of new websites enter the cyber-world, it becomes
more and more difficult for your sites' voice to be heard over the
growing din. As recently noted, "it's no fun spending thousands
– or hundreds of thousands – of dollars developing a super-cutting-edge
Web creation if no one shows up to see it." Thus, creative technical
and non-technical methods are used to drive people to your website.
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III. WEBMASTERS JUST LOOKING AT THE BOTTOM LINE
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Unfortunately, if you are a small business concern (or even in
some cases a large business concern), the strategy of driving users
to your website may not be reviewed by lawyers or even marketing
people but rather handed over to the webmaster running your site.
As anyone who has had close dealing with webmasters should understand,
most webmasters not only have no appreciable knowledge regarding
the applicable laws but also a large dose of disdain for the laws.
These webmasters are handed one job: drive users to the corporate
website. Unhampered by any knowledge of or belief in intellectual
property laws, these webmasters can be creative and triumphant in
their abilities to draw users.
There are three principal ways to locate things on the Internet:
domain names, search engines and links. Webmasters have become proficient
in using all three techniques to lure users to their sites. As will
be examined herein, all three methods are replete with hazards for
the unwary and the court system is strewn with bodies of webmasters
and companies who have manipulated the technical underpinnings of
the web without any regard for intellectual property rights of others.
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IV. ARE YOU BEING VICTIMIZED ON THE WEB?
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Moreover, most companies (and individuals) do not even realize
that they are being victimized on the web as they have not developed
any techniques for policing the web for trademark and copyright
violations. As way of an example, Cyveillance, Inc. analyzed 75,000
Web pages containing pornographic material and found 19,000 pages
contained one or more of the world's 120 most popular brand names,
including Disney and Nintendo. Companies that are victims to these
technical ploys to lure people to websites suffer not only from
possible tarnishment or blurring of one's marks but from actual
financial losses: "[t]he International Trademark Association estimates
that brand name abuse [on the Internet] reduces a company's annual
sales by over 22%."
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V. CONGRESS HAS ENACTED LAWS TO PROTECT INTELLECTUAL
PROPERTY RIGHTS
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In response to this new economy and the commerce of intellectual
property exploitation, a series of new laws have been enacted to
empower intellectual property rights holders to protect their rights
on the Internet. In the area of copyright infringement, Congress
has enacted the Digital Millennium Copyright Act that balances the
rights of copyright owners against the needs of the Internet. Does
this Act work and how can it best be used to create a fast and cost
efficient anti-piracy program. Likewise, Congress has recently enacted
the Anticybersquatting Consumer Protection Act to deal with the
registration of marks and names by Internet savvy pirates. How does
this compare to the recently changed Uniform Dispute Resolution
Policy and which procedure should you pursue?
In this digital age, it is imperative that companies and individuals
create a cost-efficient system to police their intellectual property
rights on the Internet.
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VI. Here are some questions and answers. Your
additional questions are welcome.
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Q1. Under what circumstances should I use the Uniform Dispute Resolution
Policy rather than the Anticybersquatting Consumer Protection Act?
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A1. I would only use the Uniform Dispute Resolution Policy if:
(a) I only sought the transfer of the domain name back (no
damages),
(b) wanted to limit my attorneys' fees,
(c) bad faith was clear and
(d) the cybersquatter was not geographically distant. In practice,
in my experience, most cybersquatters will turn over a domain
name after receipt of a demand letter (with some minor quibbling
regarding "costs"). However, I am about to initiate a lawsuit
on behalf of an individual whose name has been registered as
a domain name. We have decided to pursue a claim under the Anticybersquatting
Consumer Protection Act (and other relevant laws such as the
right of publicity) because we feel we can recover damages that
will exceed the cost of the litigation. Ultimately, the goal
of any anti-piracy program is to make such program into a profit
generator for the client.
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Q2. How do you trace the owner of websites that are registered
in countries that do not release domain name registrant information?
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A2: This is becoming a common problem on the Internet as smart
cyberpirates are gravitating to such first level domain names such
as ".to." I do not consider myself to be "hacker" (but some of my
best friends are). In all my investigations, I associate myself
with a "hacker" who can trace the website to the owner (usually
a United States citizen). More likely than not, I use Lin Milano
of Cybertracker or Steve Easton of A.P.I.C. Steve recently explained
to me the process of locating the owner of a .to domain name as
follows: If you go to your START menu, bottom right. Go to RUN and
type COMMAND, hit enter. A black screen will appear DOS. The curser
will be flashing. Type PING DEDICATED.TO. Wait and it will come
back to you with a trace IP address. Go to http://www.arin.net/whois/arinwhois.html
and enter the IP :) and you're a hacker.
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Q3. How effective is the Digital Millennium Copyright Act in
cleaning up foreign sites?
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A3: The initials "DMCA" seem to have a certain amount of magic
when sent to foreign ISPs and SYSOPS. Though they do not know the
requirements for the DMCA and are not registrants under the DMCA,
they all know that it relates to copyrights used on the Internet.
Though my DMCA e-mails normally do not comply with the requirements
of the act (for strategic reasons), I always cite it. In my experience,
with one exception, I have found dealing with foreign entities to
be fairly easy.
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| DISCLAIMER:
This discussion is general in nature and is not intended to and does not create
a lawyer/client relationship. This discussion should in no way be relied upon
or construed as legal advice, particularly since most legal outcomes are highly
dependent on the facts of a particular case or situation. This discussion is provided
on the condition that it cannot be referred to or quoted in any legal proceeding;
if this condition is unacceptable to you, immediately delete this email and do
not keep a copy of it in any form. The reader or recipient is strongly urged to
consult with a lawyer for legal advice on these matters. Any reliance on the discussion
information by someone who has not entered into a written retainer agreement with
the lawyer providing the discussion information is at the reader's or recipient's
own risk. |
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