Question: Cybersquatting. In 1999, Steve and Pierce Thumann and their father created Spider Webs, Ltd., according to Steve, to develop Internet address names. Spider Webs registered
Cybersquatting. In 1999, Steve and Pierce Thumann and their father created Spider Webs, Ltd., according to Steve, “to develop Internet address names.” Spider Webs registered nearly two thousand Internet domain names for an average of $70 each, including the names of cities, the names of buildings, names related to a business or trade
(such as air conditioning or plumbing), and the names of famous companies. It offered many of the names for sale on its Web site and through eBay.com. Spider Webs registered the domain name “ERNESTANDJULIOGALLO.COM” in Spider Webs’ name. Gallo filed a suit against Spider Webs, alleging, in part, violations of the Anticybersquatting Consumer Protection Act (ACPA). Gallo asked the court for, among other things, statutory damages. Gallo also sought to have the domain name at issue transferred to Gallo.
During the suit, Spider Webs published anticorporate articles and opinions, as well as discussions of the suit and of the risks associated with alcohol use, at the domain name
“ERNESTANDJULJOGALLO.COM.” Should the court rule in Gallo’s favor? Why or why not? [E. & J. Gallo Winery v.
Spider Webs, Ltd., 129 FSupp.2d 1033 (S.D.Tex. 2001)]
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