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(Fwd) What's in a domain?




--- Forwarded mail
http://www.sfgate.com/cgi-bin/examiner/article.cgi?year=1997&month=01&day=19&article=BUSINESS15704.dtl

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                        [TheSan Francisco Examiner]

----------------------------------------------------------------------------
Sunday, Jan. 19, 1997 · Page D 1
                                               ©1997 San Francisco Examiner
----------------------------------------------------------------------------


What's in a domain?

Problems arise as web sites tangle with trademarks

Tom Abate
EXAMINER TECHNOLOGY WRITER

        Toys 'R' Us officials went pale when they saw the "toys"
        advertised on a World Wide Web site named Adults 'R' Us.

        "They wanted me to get that Web site shut down," said Neil
        Smith, a San Francisco attorney who represents Toys 'R' Us.

        In September, Smith filed suit in federal court in San
        Francisco, charging that by making inflatable dolls
        available through the Adults 'R' Us web site, the San
        Francisco company was undermining the wholesome image of his
        client in New Jersey.

        In October, U.S. District Judge Claudia Wilken ruled the
        reputation of Toys 'R' Us would be tarnished if the 'R' Us
        appelation was used to "operat(e) an Internet site and
        shopping service featuring a variety of sexual devices and
        clothing." She ordered the Adults 'R' Us Web site shut down.

        Although the 'R' Us case has been settled, it illustrates
        how Internet domain names - familiarly the "companyname.com"
        of www.companyname.com - have started to conflict with
        trademarks registered under state, federal and foreign law.

        On Monday, a little-known group of Internet experts and
        attorneys will meet in Geneva to finalize a new Internet
        name policy meant to minimize these conflicts.

        In addition to solving the trademark problems, this
        International Ad Hoc Committee (IAHC) must also deal with
        resentment at home and abroad over the fact that one U.S.
        firm, Network Solutions Inc. of Reston, Va., has a monopoly
        on issuing Internet domain names for commercial purposes
        around the world.

        Worldwide domain name registration is so brisk that Network
        Solutions could collect $100 million in registration fees in
        1997 alone.

        To get a piece of this registration pie, several outfits
        have threatened to set up unsanctioned name registries. But
        that might subvert the Internet's traffic-handling system.
        The IAHC proposals are supposed to head off this crisis,
        too.

        "There certainly has been a lot of interest in what has been
        proposed," said Sally Abel, a Palo Alto trademark attorney
        who is also an IAHC member.

        To solve its twin problems of domain name competition and
        trademark conflict, the IAHC has proposed the creation of
        seven new classes of Internet addresses.

        These new classes have not been named, but might include
        www.yourname.ppl, for instance, to designate personal home
        pages. These new categories would join the "com," "gov,"
        "edu" and "org" designations that now identify commercial,
        governmental, educational and nonprofit Internet users.

        The IAHC proposal calls for a global lottery to choose 20 to
        30 firms to get these valuable, new registration franchises.

        Finally, the IAHC has proposed that all registries publish
        proposed domain names, then give trademark holders 60 days
        to object before the domain name gets posted on the
        Internet.

        "The 60-day waiting period seems to have been the most
        controversial issue," said Sunnyvale engineer Dave Crocker,
        who will join Abel at Monday's IAHC meeting.

        It may be a year or more before ordinary users experience
        any benefits - or inconveniences - arising from the IAHC
        deliberations.

        But the process reveals the hidden workings of the Internet,
        which is still run by ad hoc rules devised over the last 25
        years by the U.S. computer scientists who built the network
        - rules that are being increasingly questioned today, as the
        Internet becomes the world's hottest commercial artery.

        "The naming authority of the Internet is not based on law or
        government authority," Crocker said. "The Internet is
        structured in ways we're not used to. Formal authorization
        is less important than the fact that it works."

        For most of its history, the authority to issue Internet
        domain names has flowed from the Internet Assigned Numbers
        Authority. IANA boils down to a handful of researchers at
        the Information Sciences Institute at the University of
        Southern California.

        Led by longtime Internet engineer Jon Postel, IANA oversees
        the technical framework for Internet names. Actual
        registration, however, has always been performed by
        nonprofit firms paid under a succession of government
        contracts.

        During the 1980s and early '90s, Internet growth was driven
        by the National Science Foundation, which gave colleges
        money to join the fledgling Internet.

        Since the NSF was subsidizing the creation of new Internet
        addresses, it awarded the registration contract. In April
        1993, NSF made a five-year deal with the Virgina consulting
        firm, Network Solutions Inc.

        Although no one could have foreseen it, the invention of the
        Mosaic browser that year created an easy way to navigate the
        Internet, attracting millions of new users and sparking a
        rush of start-ups seeking to stake claims to Internet names.

        The importance of names

        Chicago attorney and IAHC member David Maher recalled his
        introduction to the importance of Internet names. It came
        while reading a Wired magazine article in 1994. The author
        had registered "McDonald's.com" as an Internet domain name
        to dramatize how corporations were ignoring this new medium.

        Maher, who represented the burger franchise on trademark
        issues, said the author gladly relinquished use of the
        domain name, but the incident put companies on notice that
        trademarks were up for grabs on the Internet.

        "Only one party in the whole world can use a given word as
        an address," Maher said. "Extortionists were trying to grab
        names and sell them to trademark owners."

        By 1995, the Internet's new popularity had created another
        problem with name registration. NSF, which supports
        scientific research, had no reason to subsidize millions of
        Internet newcomers who had commercial goals. So in September
        1995, NSF modified its contract so Network Solutions (NSI)
        could collect a $100 fee from anyone who sought a commercial
        Internet domain name.

        NSI manager David Graves said NSF insisted that 30 percent
        of the registration fee be set aside for "betterment and
        development" of the Internet.

        Graves said more than $10 million is already sitting in a
        bank account, waiting for NSF to decide how to spend the
        money. But so far none has been disbursed.

        Meanwhile, Internet insiders grumbled. When NSF subsidized
        Internet domain registration, few complained that NSI issued
        virtually all the names on the Net. Once NSI began charging,
        however, people calculated that with 80,000 new names being
        requested each month, NSI's registration monopoly was worth
        millions.

        "There are a lot of people forming registries because they
        smell dollars," said Chris Ambler, a 30-year-old
        entrepreneur in San Luis Obispo.

        Ambler is one of several people here and abroad poised to
        register commercial domains using some designation like
        "web" or "biz" instead of "com." But they need approval from
        the engineering standards bodies that have always controlled
        this naming function.

        Last fall, members of these engineering bodies got together
        with key legal experts to create the International Ad Hoc
        Committee.

        Questions to be answered

        Now, as this ad hoc process comes to a close in Geneva,
        those unhappy with the proposed policies are asking
        questions: Who appointed the engineers who have always run
        the Internet's naming apparatus? And isn't it restraint of
        trade if current practices give NSI a global monopoly while
        shutting others out of the business of issuing Internet
        names?

        "The IAHC says they have no power to mandate what NSI does"
        because NSI's contract was issued by the NSF, Ambler said.
        "So why can they tell my company what to do?"

        So what is really at stake when the IAHC meets in Geneva is
        the Internet's informal system of governance. The IAHC
        members include top Internet engineers and representatives
        from worldwide professional bodies that deal with
        trademarks.

        But they have no legal authority under U.S. or international
        law. Their only power - though considerable - comes because
        thousands of network engineers around the world have
        generally followed the decisions arrived at through the
        informal Internet processes.

        "The essence of the Internet is that the users decide,"
        Crocker said. "I think the IAHC will come up with a good
        policy, but the Internet community is free to adopt it or
        not."


---End of forwarded mail


-- 
Rick H. Wesson
http://www.sfgate.com/cgi-bin/examiner/article.cgi?year=1997&month=01&day=19&article=BUSINESS15704.dtl

-- 
Rick H. Wesson
                        [TheSan Francisco Examiner]

 Main News  Sports  Business  Style   Commentary  Examiner Home   The Gate
----------------------------------------------------------------------------
Sunday, Jan. 19, 1997 · Page D 1
                                               ©1997 San Francisco Examiner
----------------------------------------------------------------------------

                    [Pacific Bell's At Hand Homefinder]

What's in a domain?

Problems arise as web sites tangle with trademarks

Tom Abate
EXAMINER TECHNOLOGY WRITER

        Toys 'R' Us officials went pale when they saw the "toys"
        advertised on a World Wide Web site named Adults 'R' Us.

        "They wanted me to get that Web site shut down," said Neil
        Smith, a San Francisco attorney who represents Toys 'R' Us.

        In September, Smith filed suit in federal court in San
        Francisco, charging that by making inflatable dolls
        available through the Adults 'R' Us web site, the San
        Francisco company was undermining the wholesome image of his
        client in New Jersey.

        In October, U.S. District Judge Claudia Wilken ruled the
        reputation of Toys 'R' Us would be tarnished if the 'R' Us
        appelation was used to "operat(e) an Internet site and
        shopping service featuring a variety of sexual devices and
        clothing." She ordered the Adults 'R' Us Web site shut down.

        Although the 'R' Us case has been settled, it illustrates
        how Internet domain names - familiarly the "companyname.com"
        of www.companyname.com - have started to conflict with
        trademarks registered under state, federal and foreign law.

        On Monday, a little-known group of Internet experts and
        attorneys will meet in Geneva to finalize a new Internet
        name policy meant to minimize these conflicts.

        In addition to solving the trademark problems, this
        International Ad Hoc Committee (IAHC) must also deal with
        resentment at home and abroad over the fact that one U.S.
        firm, Network Solutions Inc. of Reston, Va., has a monopoly
        on issuing Internet domain names for commercial purposes
        around the world.

        Worldwide domain name registration is so brisk that Network
        Solutions could collect $100 million in registration fees in
        1997 alone.

        To get a piece of this registration pie, several outfits
        have threatened to set up unsanctioned name registries. But
        that might subvert the Internet's traffic-handling system.
        The IAHC proposals are supposed to head off this crisis,
        too.

        "There certainly has been a lot of interest in what has been
        proposed," said Sally Abel, a Palo Alto trademark attorney
        who is also an IAHC member.

        To solve its twin problems of domain name competition and
        trademark conflict, the IAHC has proposed the creation of
        seven new classes of Internet addresses.

        These new classes have not been named, but might include
        www.yourname.ppl, for instance, to designate personal home
        pages. These new categories would join the "com," "gov,"
        "edu" and "org" designations that now identify commercial,
        governmental, educational and nonprofit Internet users.

        The IAHC proposal calls for a global lottery to choose 20 to
        30 firms to get these valuable, new registration franchises.

        Finally, the IAHC has proposed that all registries publish
        proposed domain names, then give trademark holders 60 days
        to object before the domain name gets posted on the
        Internet.

        "The 60-day waiting period seems to have been the most
        controversial issue," said Sunnyvale engineer Dave Crocker,
        who will join Abel at Monday's IAHC meeting.

        It may be a year or more before ordinary users experience
        any benefits - or inconveniences - arising from the IAHC
        deliberations.

        But the process reveals the hidden workings of the Internet,
        which is still run by ad hoc rules devised over the last 25
        years by the U.S. computer scientists who built the network
        - rules that are being increasingly questioned today, as the
        Internet becomes the world's hottest commercial artery.

        "The naming authority of the Internet is not based on law or
        government authority," Crocker said. "The Internet is
        structured in ways we're not used to. Formal authorization
        is less important than the fact that it works."

        For most of its history, the authority to issue Internet
        domain names has flowed from the Internet Assigned Numbers
        Authority. IANA boils down to a handful of researchers at
        the Information Sciences Institute at the University of
        Southern California.

        Led by longtime Internet engineer Jon Postel, IANA oversees
        the technical framework for Internet names. Actual
        registration, however, has always been performed by
        nonprofit firms paid under a succession of government
        contracts.

        During the 1980s and early '90s, Internet growth was driven
        by the National Science Foundation, which gave colleges
        money to join the fledgling Internet.

        Since the NSF was subsidizing the creation of new Internet
        addresses, it awarded the registration contract. In April
        1993, NSF made a five-year deal with the Virgina consulting
        firm, Network Solutions Inc.

        Although no one could have foreseen it, the invention of the
        Mosaic browser that year created an easy way to navigate the
        Internet, attracting millions of new users and sparking a
        rush of start-ups seeking to stake claims to Internet names.

        The importance of names

        Chicago attorney and IAHC member David Maher recalled his
        introduction to the importance of Internet names. It came
        while reading a Wired magazine article in 1994. The author
        had registered "McDonald's.com" as an Internet domain name
        to dramatize how corporations were ignoring this new medium.

        Maher, who represented the burger franchise on trademark
        issues, said the author gladly relinquished use of the
        domain name, but the incident put companies on notice that
        trademarks were up for grabs on the Internet.

        "Only one party in the whole world can use a given word as
        an address," Maher said. "Extortionists were trying to grab
        names and sell them to trademark owners."

        By 1995, the Internet's new popularity had created another
        problem with name registration. NSF, which supports
        scientific research, had no reason to subsidize millions of
        Internet newcomers who had commercial goals. So in September
        1995, NSF modified its contract so Network Solutions (NSI)
        could collect a $100 fee from anyone who sought a commercial
        Internet domain name.

        NSI manager David Graves said NSF insisted that 30 percent
        of the registration fee be set aside for "betterment and
        development" of the Internet.

        Graves said more than $10 million is already sitting in a
        bank account, waiting for NSF to decide how to spend the
        money. But so far none has been disbursed.

        Meanwhile, Internet insiders grumbled. When NSF subsidized
        Internet domain registration, few complained that NSI issued
        virtually all the names on the Net. Once NSI began charging,
        however, people calculated that with 80,000 new names being
        requested each month, NSI's registration monopoly was worth
        millions.

        "There are a lot of people forming registries because they
        smell dollars," said Chris Ambler, a 30-year-old
        entrepreneur in San Luis Obispo.

        Ambler is one of several people here and abroad poised to
        register commercial domains using some designation like
        "web" or "biz" instead of "com." But they need approval from
        the engineering standards bodies that have always controlled
        this naming function.

        Last fall, members of these engineering bodies got together
        with key legal experts to create the International Ad Hoc
        Committee.

        Questions to be answered

        Now, as this ad hoc process comes to a close in Geneva,
        those unhappy with the proposed policies are asking
        questions: Who appointed the engineers who have always run
        the Internet's naming apparatus? And isn't it restraint of
        trade if current practices give NSI a global monopoly while
        shutting others out of the business of issuing Internet
        names?

        "The IAHC says they have no power to mandate what NSI does"
        because NSI's contract was issued by the NSF, Ambler said.
        "So why can they tell my company what to do?"

        So what is really at stake when the IAHC meets in Geneva is
        the Internet's informal system of governance. The IAHC
        members include top Internet engineers and representatives
        from worldwide professional bodies that deal with
        trademarks.

        But they have no legal authority under U.S. or international
        law. Their only power - though considerable - comes because
        thousands of network engineers around the world have
        generally followed the decisions arrived at through the
        informal Internet processes.

        "The essence of the Internet is that the users decide,"
        Crocker said. "I think the IAHC will come up with a good
        policy, but the Internet community is free to adopt it or
        not."

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