As the world becomes more complex, more and more legal issues are starting to fall within the realm of the CIO. We are talking about laws dealing with contracts, affirmative action, copyrights and trademark registrations.

For example, the body which assigns Internet domain names, Network Solutions, Inc. more commonly known as InterNic, did two things recently. First it implemented a charge of $50 per year per domain name. That sounds normal -- but if you do not pay, you could lose the use of your domain name. Billing will be done via an e-mail message. Now lets see, 4 million domain names at $50 each is...

Second, and more important, it issued a policy statement regarding the use of trademarks as domain names. It seems that InterNic has become party to a number of lawsuits, so it has responded with a Domain Dispute Resolution Policy Statement. The policy is designed to act as a contract between a domain name registrant and InterNic. It is focused on alleviating domain name trademark disputes and protecting InterNic in the event a dispute arises. It does not, however, require InterNic to resolve domain name disputes.

The Statement provides a procedure for InterNic’s processing of informal claims alleging a third party’s improper use of a trademark (or service mark) as a domain name. If such a claim is not based on a registered trademark or service mark, the domain name owner will be allowed to continue using the domain name unless a court or arbitrator issues an order to the contrary. If the claim is based on a registered mark, the domain name owner must also provide InterNic with a certified copy of a registration for the mark.

If the domain name owner cannot do that, InterNic will aid the domain name owner in finding a new domain name, and will allow a 90 day transition period of use of both domain names simultaneously. Once this period is over, the disputed domain name will be put on hold status and nobody will be able to use it until the dispute is resolved.

A number of smart people were going out and reserving a name and then trying to sell it to the trademark holder. To fight that InterNic now requires:

• Several warranties and representations with respect to the proposed name, including that the registrant has the right to use the domain name, has a bona fide intent to use it on the Internet regularly, is not using it for unlawful purposes, and that such registration and use does not interfere with or infringe on the rights of any third party in any jurisdiction with respect to trademark, service mark, tradename, company name or any other intellectual property right.
• Indemnification if InterNic gets drawn into any trademark infringement actions (InterNic has, in fact, been named as a defendant in a number of recent trademark/domain name litigations).

Based on InterNic’s statement, trademark registration of domain names may become important, to ensure the ability of your company to continue to use a particular domain name. Therefore, we are advising everyone to protect valuable domain names by securing trademark or service mark registration for such domain names.

As the move to the information highway takes place, how many other issues like this will the CIO have to be on top of? It is questions like these that need to be the focus of more management time. Places where CIOs should get a quick legal education include:

• Trademark (domestic and international)
• Copyright (acquisition and use of)
• Labor law (city, county, state, federal and international)
• Implied contracts (state and federal)

This is not an all inclusive list, rather it is intended to jog your mind.