names, service marks, literary characters, images, music or sound is a violation of mat party's intellectual property rights, JUSt as it would be in a non-Internet medium under traditional principles ofinrellecruaJ property law."SI Infringement can result from the selection of a domain name that is used to identify and locate the site on the lnterner. Many companies use their trademark as the domain name for their site (such as www.fQrd.cQm fQr FQrd MQror CQmpany), but it is nor uncommon for companies to encounter another site operating under an identical or confusingly similar domain name. For instance, Disney recently agreed ro change its GQ NerwQrk IQgQ and pay $21.5 million to settle a trademark infringement suit fLied by GoTo.com after a federal appellate court affirmed a preliminary injunction requiring Disney ro Stop using a logo thar was very similar to GoTo's.S2 Some of mese trademark disputes are traditional, such as AOL's unsuccessful efforts to stop AT&T WorldNet from using the phrases "You Have Mail," "1M" and "Buddy List." The court ruled that these phrases are generic. S3 Counsel needs to be familiar with the policies and procedures of Network Solutions, Inc., which is responsible for the registration of domain names. the case law on domain name disputes, and the law on trademark infringement and dilutiQn.5 4 FQr example, the WQrld Wrestling Federal WQn a WlPO arbitration ruling against the registrant of the "worldwrestlingfederation.com" domain name. The arbitrator applied the lCANN Uniform Domain Name Dispute Resolution Policy and ordered the registration transferred to the WWF.SS
With all Qf the news abQut Napster and M P3 almQst everyQne knQWS that cQpyright infringement is very easy with the Internee. Once online, digital versions of works can be uplQaded, downloaded and duplicated with ease, modified, and transmitted to thousands of other users almost instantaneously. Virtually every activity on the Interner - browsing, caching. linking,56 downloading. accessing information, and operating an online service - involves making copies. For instance, using protected photographs on a Web site without the copyright owner's permission infringes. S7 Copying is inherent to the medium, but there is still uncertainty about me scope of copyright owners' rights. They may have potentially unprecedented rights over the use of their materiaJs on the Internet. and balancing their rights with user interests wiU have to be struck by application of the fair use doctrine and recognition of implied licenses. s8 For instance, a recent lower COUf[ decision held mat fair use permits Internet "spiders" to make temporary copies of web pages in order to extract and republish unprotected factual information. 59 On the other hand, notwithstand.ing agreements with publishers and other partners, an entrepreneur's venture allowing customers to search online for information on certain topics from published speeches. articles, dissertations. and TV transcripts might run into problems if those publishers and other partners have not been granted the right to reproduce the speeches and articles from the freelance authors of those works. GO Similarly. Universal and other major movie studios recently won a preliminary injunction barring Web site operators from
distributing software that permits users to decrypt and CQPY movie DVDs. The operarors' activities arguably violated the anti-circumvention provisions of the Digital Millennium Copyright Act. 6 ' Other intellectual property issues include whether the developments in a sporting event like a basebaJl game can be distributcd simultaneously by pager; who controls the right to POSt on the Internet the hole by hole results in a golf tournament; and whether a newspaper can usc me image of an athlete to promote itself. 62 Discovering, tracking and stopping trademark and copyright infringement on the Internet is daunting, but techniques and technology are being developed to monitor the Web for illegal use of trademarks. copyrighted materials, and other works. G3 Franchise Liability: Franchise law violations can occur in cyberspace in any jurisdiction from which someone can access a supplier's Web site. The FTC has proPQsals to deal wirh the application of franchise regulations In cyberspace. but these propQsals will not help suppliers of computer hardware and software determine whether their distribution agreements are subject to franchise regulation in the first place. If a supplier does not want to deal with the laws and regulations associated wim being a franchise, it may need to change irs relationship with distributors to avoid having contracts satisfy the definition of a franchise. 64 Liability for Advertising; The Internet works well for advertising but this easy and relatively inexpensive access ro the global market also gives everyone relatively easy access to the site owner. Every site owner
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Rcgistered Professional Engineer in 3 st:lIes.
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9 rears of experience as PresidCIll of large distributor specializing in :111 types of safety equipment, major emphasis on metal forming and stamping.
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II ye:lrs of experience as President of company involved in repair and rewinding of electric mOiors and mamLf.lcturc, sales, installation :md sen'icing of electrit'lll control panels for indll,Stry.
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14 years of experience with Gencml Electric Co. in engineering and industri:11 sales.
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Earned OS - Electrical Engineering in 1947.
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JQhn E. McAllister' 3 Palisandro Drive' Hoi Springs Village. AR 71909-4613 Phone: (501)922-1709 Fax: (501)922-4177
101.16 tfo. I/\\inler 1001
The lrkusill La"}er
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