Domain-Name Error Redirect

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Introduction Some domainers, having forgone parking revenue to avoid any claims of trademark violation, have then found themselves thrown into legal trouble with trademark claimants because of actions taken by a third party (ISPs and PC manufacturers). In addition to the resulting direct legal cost, the possibility of action by a third party heightens uncertainty and steals management's attention away from its real job.

The troubles for the domain name owner start when a surfer who enters in the browser an inactive domain name is redirected to a Web page with advertising instead of getting a page that says there is an input error. The redirect page is controlled by either an ISP or the browser, a fact many of you have experienced. Sometimes this page includes an ad.

* It can be argued that the undesirable redirect of an inactive domain name has a negative impact on the surfers' experiences. Thus, the redirecting party is indirectly causing harm to Internet users.

* When you enter a domain name into a browser, the ISP redirects you to an ads page through its server, not (as is more common) through the browser.

of a trademark name holder, who then claims that the domain name is an infringement on their intellectual property because it seems to be associated with the trademark, despite the fact the domain is inactive. The trademark claimant grabs the opportunity to coerce the owner into surrendering the domain name-the "gotcha!" effect. On the other hand, by keeping the domain name inactive, which is legal and not necessarily a trademark infringement, a domain name owner can still incur legal bills and the already mentioned costs of distraction and uncertainty.The problem stems from our lack of clear legal definitions of online network trademark infringements.

* If the trademark owner believed that the idle domain name was an infringement, or that they could bully the owner into surrendering it, they would have done so without seeking the pretext of alleged infringement through domain redirection.

* Google's AdSense user agreement, for example, pushes the trademark responsibility to the advertiser. However, a recent court decision raises doubts about the legality of free riding.

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Some parking monetizers see an incentive to filter the ads. For example, GoDaddy has recently introduced such a service. If the aggregate industry demand is small, then trademark ad filtering is just a niche market and other parking companies will have no incentive to provide such a service. However, if there is money to be made, economies of scale suggest that the developer of such a filtering technology can leverage the technology. If so, GoDaddy or another monetizer ought to follow a platform strategy to leverage other services. Thus, everything being equal, we might end up with platform competition shaping the domain name industry. On the other hand,

with complementary innovation, a non monetizer may be able to leverage its platform; thus, there would be no platform competition. Of course, the non monetizer could leverage its technology by going upstream to the ad agencies.

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The options and incentives of a Domain trademark owner are:

i. An agreement with an ISP designating which key words would turn up pages showing the trademark owner's ads and nobody else's, and which would turn up pages without the owner's ads. This arrangement would be effective only when trademark claimants and/or domainers compensate the ISP for filtering ads.

ii. From the perspective of trademark claimants, the viability of the incentive depends on the difference between the value of the damage to the trademark owner and the cost to the ISP.11 If brand damage can be reduced by more than an acceptable compensation to the ISP, then such an incentive scheme will be effective. Nevertheless, the trademark claimant incurs additional costs: the need to make such arrangements with multiple ISPs, as well as administrative costs that must not be left out of consideration. To decrease monitoring and operating costs, an intermediary can leverage relationships across ISPs and trademark holders.

For the domainer, the arrangement is viable when the revenue outweighs the expected cost of legal action, a balance that is not easy to calculate.

iii. Microsoft controls which page is served when there is an error in Internet Explorer's address input. With Google tool bar added to the browser, you are redirected to a page rendered by Google. The top of the page suggests an input correction by asking "Did you mean %u2026" Nevertheless, the page also has ads. Some PC manufacturers have made agreements with Microsoft to redirect the error to a page with ads supplied by the PC manufacturer. These ads are typically supplied by ad agencies such as Google and Yahoo.

Microsoft makes money from clicks on the ads. Thus, it's a real problem in foregone revenue for the company when users are served irritating content, since some may drop Internet Explorer browser. when the ISP ads and the advertisers are on different ad networks, there is no chance of overlapping ads and the conflict does not arise. An example would be if the ISP were using Yahoo and the advertiser were using Google.

iv. In the case of ad exclusivity, the cost includes forgoing revenue from other advertisers. In practice, of course, many people stick with what they have, whether because they don't like change, they doubt that another browser will be any different, or they work for a company whose IT department dictates the browser its employees use. As the PC manufacturers seem not to be concerned about the legality of their action, their incentives to change behavior lie with browser developers, Microsoft, and the ad agencies.

v. An alternative to serving ads, the browser can be set up to check if any of the user's previously visited sites are related to the key word or the domain name entered in the browser. Thus, in principle, the browser's developer can make money from information on users' surfing habits. However, privacy issues will probably prevent the implementation of such a service.

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Ad agencies

Ad agencies have two control levers: at the advertiser level (Google's AdWords, for example) and at the publisher level by providing ads (Google's AdSense and parking feeds, for example)

Advertiser level

* Instead of filtering the ads, Google, for example, gives advertisers the option to select which sites not to display their ads on. However, this can be a disadvantage for parking in general if advertisers opt not to use any parked domain name. On the other hand, being selective domain-by-domain may not be cost effective.
* The ad agency can place restrictions on the type of works that can and cannot be used.
* Courts can force advertisers to use "negative key words."

Publisher level

* An ad agency's incentives to develop a filtering technology are primarily driven by two potential benefits: operating profits and strategic profits. The first is when operating revenue is greater than operating cost. Given that ad agencies have so far escaped trademark issues, their revenue comes from click-on ads. Thus, the lack of filtering may lead some advertisers to flee to a competitors network. However, Google is now the dominant player in the text-based ad

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Duel Debate Module

Please Discuss Your Understanding Of Domain Name Error Redirect Here:

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Bryan says:

I found a bit more information on domain name redirect errors here: http://www.bitronictech.net/knowledgebase/6/Domains

 

Domain owners

Domainers can implement a cooperative strategy with trademark claimants and domainers either directly or through a niche monetization-service provider

Advertisers/TM claimants

a. Adopt a cooperative carrot-and-stick regime with domainers that benefits both parties.

b. Take legal action against domain owners.

c. Use an online identity protection service to monitor and resolve any potential infringements.

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