
By
Lesia Stangret
Financial Post
October 3, 2000
Think good intentions
and a hobby can't get you into trouble? Consider the story of Ritchie and
Garth. Ritchie Sinclair and Garth Cole are childhood friends. Ritchie is
an artist with a love of native art. Garth is an economics officer for
the City of Toronto. The two share a history of community service and a
vision for giving every Canadian a home on the Web. Not a bad idea. But
a costly one. They're now being sued for more
than $500,000.
Their idea involves
creating a network of online community centres primarily in the form of
regional Web sites. Each local site would provide residents with free services
-- such as e-mail, discussion forums and personal home pages -- and help
area businesses take advantage of the Net by providing an array of communication
services at cost. They'd operate the sites on a not-for-profit basis under
the name "Friendship Enterprises."
They decided to call
the network Canada2, the 2 symbolizing a second or parallel community in
cyberspace. In keeping with the "2" theme, they registered as domain names
the "2.com" versions of provinces, regions and cities. That included Toronto2.com
for the Toronto site, which they entitled Toronto2. They started with the
site for their hometown, Toronto, and hoped to recruit volunteers to take
the idea nationwide.
But in registering
Toronto2.- com, they've stepped on some toes. They're being sued by a partnership
called Tor- onto.com.
Toronto.com is made
up of some pretty big players, including the publisher of the Toronto Star
and Bell ActiMedia, which publishes the Yellow Pages. The partnership is
the business of developing Internet city guides and was lucky enough to
obtain the ".com" domain names of several cities.
Having landed such
prime domains as Toronto.com, it's using them for commercial sites showcasing
attractions and services in those cities.
The partnership is
now claiming to have trademark rights in Toronto.com and is objecting to
others using similar domain names for what it sees as similar city-related
sites. It argues that, in selecting Toronto2.com as their domain name,
Ritchie and Garth are engaging in "passing off." Passing off means taking
advantage of Toronto.com's goodwill by deliberately misrepresenting Toronto2
as being associated with Toronto.com.
Toronto.com admits
to having entered into an undisclosed number of settlements with owners
of other Web sites with similar domains. But because of confidentiality
constraints, it can't talk about them, so we don't know what ended up happening
to these sites.
Most of the owners
of the targeted domains were likely unprepared to engage in legal battle.
But Ritchie and Garth believe they're in the right and are choosing to
defend, rather than try to settle, their suit.
Although they've
defeated an application for a preliminary injunction that would have temporarily
prevented them from using the Toronto2.com domain -- or, for that matter,
anything similar to Toronto2.com -- they're now in limbo awaiting an expected
five-day trial within the next year.
What's troubling
about this case is the attempt to monopolize a word as commonly used as
the name of a city. Anyone creating a Web site for or about a city will
want to include the city's name in its domain name. But accepting Toronto.com's
arguments would mean that if "city.com" were taken, nobody else could set
up a city-related site by using a city-related ".com" domain.
Based on the case
law, the argument is weak. As a mark, Toronto.com consists primarily of
a geographic name and is largely descriptive of the contents of the site.
Such marks tend to receive narrow protection under the law because of concerns
with granting exclusive rights over commonly used words.
So, seeing as the
law may not be on its side, why is Toronto.com proceeding with its suit?
Why, in other words, would the owners of a site attracting 96,000 page
views a day sue a couple of guys developing a community site in their spare
time for the exorbitant sum of half a million dollars?
Maybe they see it
as a legitimate commercial threat. Or, maybe it will send a message and
because, given what's at stake, most people wouldn't be prepared to fight
back.
Lesia Stangret is
a lawyer with Smith Lyons in Toronto specializing in Internet and e -commerce
law.
LStangret@Smithlyons.ca.
RELATED SITE:
Toronto.com
A major portal site
for Toronto as well as a flagship for the Toronto Star.
Toronto2.com
This fairly slow-loading,
not for profit site is fighting for its domain life.
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