Recently, a web domain name rapidly becomes a very important business tool nowadays. Furthermore, a web domain name significantly represents a company or a brand in the internet. It can be a powerful marketing tool, also a public relation tool, and other tools which really cut the company’s cost to approach the customers. The customers also spoiled by the easiness to gather the information about their needs and wants from internet. However, a web domain name is a limited resource, once it is owned by someone or by a company; it cannot be owned again by others. Most medium up companies have web domain name in the internet, and usually the web domain name is stand for the name of the company or the brand which the company possessed. When internet domain name become more and more important and more valuable every single day, the government made the regulation on the possession of internet domain name. This regulation includes the anti cyber-squatting regulation and many other regulations which help the society to have a proper rule about owning the web domain name.
In order to fulfill one of the requirements in my master degree course, I need to do analysis regarding web domain name as a limited resource. One of the very great examples of a feud to own a domain name is Nissan.com. Nissan motors international was trying to confiscate Nissan.com domain name from Uzi Nissan, a computer store owner who registered Nissan.com in 1991 for his business.
The background
The current owner of Nissan.com is Uzi Nissan. He was born in Jerusalem - Israel. In addition, Nissan is a biblical term identifying the seventh month in the Hebrew calendar. The term Nissan also is Arabic for the month of April. Uzi Nissan came to the US in 1976, and has used his surname for years to identify a number of business enterprises. The first was "Nissan Foreign Car" in 1980. When he operated this business, he serviced different makes and models of foreign cars, including cars manufactured by Nissan Motor International, back then known as "DATSUN". Contrary to the allegations by Nissan Motor, he did not choose to use my last name "Nissan" for my business in 1980 because of their name. At that time, Nissan Motor International was known as "DATSUN" and was not known as "Nissan" in USA.
In December 1987, he started an import/export business known as "Nissan International" At that time, Nissan Motor was not well known as Nissan in USA, but primarily as "DATSUN". As with the earlier business, he chose to use Nissan in my business name because it was my last name.
On May 14, 1991, "Nissan Computer Corp" was incorporated in the state of North Carolina. He was then, and still is, the company President. He has used Nissan as part of my trade name in connection with the sale of computer hardware, computer maintenance, networking, computer training and other consulting services related to computers. On June 4, 1994, he registered the domain name "nissan.com" and created a web site to promote computer related products and services on the Internet. In July of 1995, he obtained a service mark registration for Nissan and my logo from the State of North Carolina. On March 17, 1996, he registered the domain name "nissan.net”, and began offering Internet services, including dial-up connections and direct data connections to business.
This lately, Nissan Motor did a lawsuit against Nissan Computer (named after its founder and current president, Mr. Uzi Nissan) for Trademark Infringement, Trademark Dilution and Cyber-Squatting, seeking 10 Million Dollars in damages.
Analysis
If I were the special advisor for this case, I will say, Uzi Nissan has the right to sell his domain name Nissan.com to Nissan Motor International. There are few arguments for this recommendation, there are:
1. There is no bad intention from Uzi Nissan to have Nissan.com and Nissan.net as the domain name. Since Nissan is his family name, and his business identity.
2. Uzi Nissan owned the domain name since 1994, when at that time Nissan Motor in USA still called as DATSUN.
3. Nissan brand are possessed by both parties, however, usually a more superior well known brand, and geographically better known, usually be the owner of the brand. Even though, Nissan Computer entered first.
4. By the agreement from both parties, there will be no loss for Uzi Nissan to sell the domain.
In this case Nissan motor sued Uzi Nissan for $10mio, and I believe that amount is proper for a big and well-known brand like Nissan Motor. People will normally type Nissan.com to seek information regarding Nissan Motor. When people see Nissan.com owned by other parties, people will feel disappointed and discouraged to know more about Nissan. People will feel that Nissan Motor has no serious intention to satisfy the customers.
In addition, the good will value of Nissan brand will damaged because of this event. The future value will be seriously threatened by the inability of Nissan Motor to obtain Nissan.com. Brand name, good will, and domain name are crucial asset for the company, in this case NISSAN Motor, as the brand has the good will and Nissan.com as the domain name also plays important role. That is why the court decided that Uzi Nissan has no right to do business activity in his website. However, now his website is fatally exposing the incident between him and Nissan Motor. This is a critical threat for Nissan Motor. Moreover, Nissan motor’s website now is Nissan-global.com is seemly not customer friendly.
From Uzi Nissan perspective, if he doesn’t want to sell the domain name to Nissan, because of various reasons, including his concern to be sued by Nissan Motor, or his pride; he must not use the website to do any business activity/promotion in the website. Since Nissan brand is well known for automotive brand, so it will significantly mislead the society. In contrast, currently Uzi Nissan put a very provocative content in his website regarding his case with Nissan Motor. I can effortlessly understand his position as a citizen, and as a business man. Since USA is a free speech country, I think as long as he doesn’t give any fake information in the website, it still considered acceptable. From his link http://www.nissan.com/Lawsuit/The_Story.php, we can straightforwardly conclude that Nissan Motor is the “bad guy” here. It really hurts Nissan brand in USA, and Nissan’s good will in USA society, especially the Jewish community, since Uzi Nissan is a Jewish. We can easily see in Nissan.com about 500 pages of comments that visited and commented about the case, I feel terrible for Nissan Motor. All the commentators are pro Uzi Nissan, and anti Nissan Motor. In this case, Nissan Motor just lost a big share of market.
Next point, I would like to elaborate my opinion about Nissan’s ethics in this case. Since, the court has decided the Uzi Nissan is still the owner of the domain name, Nissan Motor should ask the domain name from Uzi Nissan in a good manner. It is very obvious that Nissan Motor started a wrong move by suing Uzi Nissan. It’s just created a very bad market image of Nissan Motor in the world, especially USA market. The condition was much worse when Uzi Nissan won the domain name, and the court rejected Nissan Motor appeal for this case. In present, Nissan Motor is trying to enter the computer business in USA in purpose to take over the Nissan.com domain name. I think it is a quite silly move for a big company like Nissan Motor. It can easily buy, and make an agreement with Uzi Nissan, also pay him a very good amount of money. So that Uzi Nissan will surrender his right as the owner of Nissan.com domain name and Nissan Motor also gets its objective.
In this case, both are really playing hard and harsh. I believe the fair court decision for this case is giving Uzi Nissan the right to sell Nissan.com domain name to Nissan Motor as the agreed amount between them. Nissan Motor will surely damaged financially by buying the domain name from Uzi Nissan. The ball is in Nissan Motor’s hand, since Uzi Nissan is just a normal citizen in USA. Both parties must do win-win solution, since Nissan Motor lawsuit against Nissan Computer (named after its founder and current president, Mr. Uzi Nissan) for Trademark Infringement, Trademark Dilution and Cyber-Squatting, seeking 10 Million Dollars in damages is stupid movement for me. It is proven by the victory was held by Uzi Nissan.
Conclusion
Web domain name of a well-known brand is very essential and regarded as a crucial asset for the company. Case Uzi Nissan and Nissan motor give us very nice information regarding Trademark Infringement, Trademark Dilution and Cyber-Squatting for internet web domain name. However, Nissan motor lost for the lawsuit.
To finish this case, and having a win-win solution, both parties must have an arrangement. I would suggest the court to give Uzi Nissan the right to sell the domain name as the request of Nissan Motor. Nissan Motor brand name, good-will will not be damaged by this action, and Uzi Nissan can has another domain name for his business.
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