Marketplaces are generally not exempt from facilitating or profiting from the sale of trademarked domains.
While marketplaces may have policies in place to prevent the sale of infringing or counterfeit goods, these policies often do not provide a blanket exemption for trademarked domains.
Here's a breakdown of why:
- Trademark infringement: Selling a trademarked domain without the owner's permission can constitute trademark infringement. Marketplaces can be held liable for facilitating such infringement if they have knowledge or should have knowledge of the infringement.
- Profit from infringement: Marketplaces often profit from the sale of goods on their platforms, including trademarked domains. This profit can be seen as benefiting from infringing activity.
- Duty to protect: Marketplaces have a duty to protect their users and the broader public from harmful or illegal activities, which includes preventing trademark infringement.
However, there are some nuances to consider:
- Innocent infringement: If a marketplace can demonstrate that it was unaware of the trademark infringement and took reasonable steps to prevent it, it may have a stronger defense.
- Safe harbor provisions: In some jurisdictions, online marketplaces may be eligible for safe harbor protections if they meet certain criteria, such as promptly removing infringing content upon notice.
It's essential for marketplaces to have robust policies and procedures in place to prevent the sale of infringing trademarked domains. These policies should include:
- Verification processes: Requiring sellers to verify their identity and ownership of the domains they are selling.
- Trademark search tools: Providing sellers with tools to search for existing trademarks and avoid infringement.
- Notice and takedown procedures: Implementing a clear process for trademark owners to report infringing listings and for the marketplace to take action.
- Educating sellers: Providing sellers with information about trademark law and the importance of avoiding infringement.
By taking these steps, marketplaces can reduce their risk of liability for facilitating trademark infringement and protect the interests of both trademark owners and their users.