May Registration of a Domain Name Subject the Domain Name Registrant to Liability for Trademark Infringement?

In the United States, mere registration of a domain name does not constitute use of the domain name as a trademark. Accordingly, the courts have found that mere registration of a domain name, with no other act, does not constitute trademark infringement. Use of the domain name in connection with an active website, may however, trigger liability. In addition, registration of a domain name that consists of or contains a well-known trademark may constitute trademark infringement or dilution if the domain name registrant registered the domain name with the intent to sell it back to the trademark owner for a profit, or otherwise registered the domain name in bad faith.

Like any other user of a mark, a domain name registrant should consider having a thorough clearance of the domain name performed before embarking upon an extensive marketing campaign using the name or other activity that might subject the domain registrant to liabiltiy. Due to the international nature of the internet, the domain name registrant may be well advised to consider performing availability searches in foreign countries where the website is expected to be frequently accessed.