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To: Eric Wells who wrote (72444)8/6/1999 6:58:00 PM
From: Glenn D. Rudolph  Respond to of 164684
 
FOCUS: Senate bill to outlaw "cybersquatting"
(adds Clinton opposition, para. 10-11)
By Aaron Pressman
WASHINGTON, Aug 6 (Reuters) - People who register Internet
sites in the names of famous companies, with plans to sell the
names back to the firms for big money, may end up paying big
fines instead under legislation passed by the Senate late on
Thursday.
The bill outlaws so-called cybersquatting by imposing fines
of up to $100,000 per Internet name on a person who registers a
name "in bad faith" by hoping to profit from the association
with a trademark owned by someone else.
That would cover people who registered a trademark name
hoping to sell it to the trademark owner, as well as sites that
use trademarks, or words similar to trademarks, to draw traffic
to their own sites.
For example, purveyors of pornography registered
dosney.com, similar to Walt Disney Co.'s <DIS.N> own Web site,
and a seller of phone calling cards not affiliated with AT&T
Corp. <T.N> registered attphonecard.com.
But the legislation was substantially changed from a
proposal originally introduced in June by Michigan Republican
Spence Abraham.
Legal experts had warned that the earlier bill was far too
broad and could have led to criminal prosecutions of people who
used trademark names in files posted on the Internet, e-mail
addresses, or hyperlinks leading from one Web site to another.
The earlier bill also outlawed people who put up protest or
parody sites using trademark names, like
www.PepsiBloodbath.com, a site urging Pepsi to stop posting
advertising in Mexican sports arenas during bull fights.
Under the version passed by the Senate on Thursday, written
by Vermont Democrat Pat Leahy and Utah Republican Orrin Hatch,
fines would be imposed only on the use of domain names for the
purpose of profiting from the value of a another's trademark.
"It is important that we distinguish between the legitimate
and illegitimate use of domain names," Leahy said in a
statement on the bill. "Bad-faith intent to profit is required
for a violation to occur."
For the bill to become law, the House would have to adopt
similar legislation.
The Clinton administration expressed its opposition to the
Abraham version of the bill, but a White House official said
the administration remained opposed to the Leahy-Hatch version
as well.
"Absent any showing that the legitimate interests of
trademark holders are not being protected, it would be better
to allow courts to continue to develop a body of case law in
this area," the administration said in an official policy
statement sent to lawmakers on Thursday before the vote.

REUTERS
Rtr 17:46 08-06-99