Are there any special rules for domain name disputes?
Yes, there are special rules for domain name disputes in California. The Anticybersquatting Consumer Protection Act (ACPA) is a federal law that prohibits registering, trafficking in, or using a domain name with the intent to profit from someone else’s trademark. The ACPA provides a civil cause of action to sue domain name registrants who use domain names similar to trademarks in bad faith. It also provides for various remedies, including transferring the domain name to the trademark owner and in some cases giving the trademark owner monetary damages. California also has its own domain name dispute laws, the Unfair Competition Law and the Business & Professions Code. These laws are similar to the ACPA in that they provide a cause of action to sue persons who register, use, or traffic in domain names with the intent to profit from someone else’s trademark. These laws also allow trademark owners to seek a variety of remedies, including the transfer of the domain name to them. One important difference between California and federal domain name dispute laws is the damages award. Under the ACPA, a trademark owner may be entitled to statutory damages (up to $100,000) if they can prove bad faith, whereas in California trademark owners may only be entitled to actual damages, and in some cases, attorney’s fees. In sum, both the federal ACPA and California’s Unfair Competition Law provide for actions against persons who register, use, or traffic in domain names in bad faith, with the goal of profiting from someone else’s trademark. While the remedies available under ACPA and the Unfair Competition Law are similar, the damages award may be different.
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