Typosquatter Plays Innocent By Casting Microsoft As Big And Mean

from the pot-meet-the-kettle dept

Last month, Microsoft sued typosquatter Alf Temme for redirecting mistyped domains like "ho0tmail.com" and "hot5mail.com" to his own website, which sells ridiculously expensive exercise machines. Typosquatting has been going on since the early days of the internet, and the practice eventually resulted in the passage of the Anti-Cybersquatting Consumer Protection Act (ACPA), which essentially makes typosquatting illegal. That said, Temme is complaining that the $500,000 settlement offer that Microsoft has requested from him amounts to "extortion" in his eyes. Microsoft originally sued for $2.4 million, or about $100,000 in statutory damages for each of the 24 domains named.

Typosquatting seems to attract persistently slippery individuals. For example, even after typosquatter John Zuccharini served time and was fined for his typosquatting behavior in 2003, it was not long before he returned right back to his typosquatting behavior in 2007, earning him another $164k in fines.

Temme claims that Microsoft's $500,000 settlement offer is "in effect trying to do is put a small company of eight employees out of business." While the David & Goliath angle might play well, digging a little more deeply into the story casts a different light. Considering that Temme has registered around 1,000 domains that could be considered typosquatting, it's clear that he has made a habit of this deceptive practice. Furthermore, Temme has already lost $130,000 to Dell in a similar lawsuit. So, while Temme claims that he would happily turn over the domains in question, to do so would merely make typosquatting even more profitable than it already seems to be. Likening mistyped domains to prime real estate, Temme equates the practice to buying "some property next to Disneyland."

Though this case may have some slight similarities to the pre-settlement groups that have been set up to deal with copyright infringement, the difference is clear: in this case, unlike the copyright "criminals," not only is Temme in clear violation of typosquatting laws, he has made it an integral part of his business practice to do so. So, whereas the pre-settlement groups use a shotgun approach in an extortion-like shakedown, Microsoft's offer is specific to the Temme case only. Settling potential lawsuits, by themselves, is not a form of extortion. It's just when the potential viability of the actual lawsuits are suspect that questions of extortion-like actions begin.

That said, Temme must be selling a good number of $14,000 exercise machines if he considers these fines to be just a part of his cost of doing business.

Filed Under: lawsuits, settlements, typosquatting
Companies: microsoft

Is Google Liable For Typosquatting Domains That Use AdSense?

from the seems-like-a-stretch dept

While I have tremendous respect for the ongoing work that Ben Edelman has done over the years exposing many of the dirty tricks used by spyware and adware vendors, I tend to disagree with his view on trademark law. In the past, Edelman sided with websites that sued early spyware vendors for putting up competing pop up ads, but that was missing the point. The real problem there was the fact that spyware was surreptitiously installed. If people wanted to see competitive ads, that should be their choice, and not a trademark issue. There's nothing wrong with competitors trying to get your attention if they know you're looking for a competitor's product. That's not a trademark law, so long as there's no attempt to confuse users into thinking that one product was made by someone else.

Edelman, however, disagrees. And, now, he's actually suing Google for allowing AdSense ads to be placed on "typosquatter" domains. This lawsuit seems like a longshot. As has been seen in numerous lawsuits over AdSense and trademarks, suing Google is trying to put liability on the wrong party. You could potentially sue the owner of the domain, but even that seems like a stretch. It's unlikely that anyone arriving at the typosquatted domain will be "confused" into believing they're at the correct site. They'll either quickly retype the URL properly, or they'll click on a link on the site that takes them to the proper site. There's no actual "confusion" here and it's difficult to see how there's any consumer harm. The fact that Google makes money off the practice shouldn't be seen as illegal at all.

Filed Under: ben edelman, lawsuits, trademark, typosquatting

Apparently Fines And Jail Time Not Enough To Deter Infamous Disappearing Typosquatter From Typosquatting Again

from the cnat-saty-aawy dept

PC World has a story about how the FTC has fined John Zuccarini $164,000 for typosquatting domains that kids are likely to visit and sending them to hardcore porn sites. Before I saw the name of the guy in question, I had thought it was probably worth writing up a post asking what kind of idiot points children to porn sites? It hardly seems good for business -- as the target audience isn't quite right and it's clearly likely to bring the feds down on you pretty quickly. However, once I realized it was John Zuccarini, it became even more worth posting, because we haven't had a chance to write about Mr. Zuccarini in years (probably because he was in jail for a while). Since many of you may not recognize the name (or missed the various stories about him from way back when), it's worth recapping.

Zuccarini's first claim to fame came in early 2001 when the press picked up on the fact that he had built up a huge typosquatting empire to prey on people who mistyped a domain name. If you went to one of his domains, it would pop up ads that would take over your screen that would be nearly impossible to close. However, what was much more interesting was that Zuccarini was a slippery sucker who was tough to find. After losing a few cases brought against him, he just started ignoring all lawsuits and judgments against him and basically went into hiding (while still making tons of money). In the rare instances where he showed up in court, he refused to give anyone a way to find him again. The transcript of him answering questions in court about where he lives is quite amusing:

Question: What is your current address?

Zuccarini: 957 Bristol Pike, Apartment D-6, Andalusia, Pennsylvania, 19020.

Q: Is that where you currently reside?

Zuccarini: Not necessarily.

Q: Where do you currently reside?

Zuccarini: I don't have - that's my legal address. I really don't have a permanent address at this time.

Q: Where do you currently reside?

Zuccarini: Right now, I am staying at the Millennium Hotel in New York.

Q: When you are not in New York for a deposition, where do you live? Where have you lived in the past two weeks?

Zuccarini: I have been living in various places.

Q. What are the various places that you have been living?

Zuccarini: Friends' places. You know, that type of thing. Different hotels.

Q. 957 Bristol Pike is not your residence?

Zuccarini: No, it's not. It's my legal address. I have a lease on the apartment and that's where I have - some things are sent there which I get.

Q: Do you live in Pennsylvania?

Zuccarini: I don't know. I don't have a permanent address so I can live anywhere. I don't live anywhere right now. I can't give you a permanent address.

Soon afterwards, he basically disappeared completely. The FTC ordered that his website all be shut down, though it's unclear if that ever happened. Not long after that, the FTC fined him about $2 million for typosquatting. It took until late 2003 until Zuccarini was finally tracked down and arrested for pointing kids to porn, leading to a quick guilty plea and three year jail sentence. Do the math and you realize he's back out again... and apparently went right back to his old tricks: typosquatting and pointing kids at porn sites. You would think he would have learned his lesson, but apparently not. To hear that the new fine is only for $164,000 seems a bit surprising. Given the earlier fines, conviction and jailtime, you would think that something more stringent might make sense. In the meantime, there's no word on whether or not Zuccarini even plans to acknowledge the fine. Given his past behavior, you might not want to bet on it.

Filed Under: ftc, john zuccarini, porn, typosquatting