Archive for: contract law

Internet domains, case I ACa 272/06 – domain name IS NOT property under the Polish law

February 8th, 2010, Tomasz Rychlicki

The Appellate Court in Katowice, in a judgment of 16 June 2006, case file I ACa 272/06, ruled that it is pointless to talk about the “ownership” of Internet domains, because the civil law sets the property rights in article 140 of the Civil Code, which only refers to tangibles, and domains are not such things, and further, due to the closed list of property rights in intangibles (the so-called numerus clasus of IP rights – the principle that the system of estates allows only a limited number of property rights available in a legal system), there are no regulations in the Polish law, which suggests that the effect of registering Internet domain names is, to acquire by the subscriber, the right to use and dispose of the domain. The agreement between the subscriber and the Internet domain registrar is a contract to provide telecommunications services within the meaning of article 1(1) of the Polish Act of 16 July 2000, Telecommunications Law – TLA – (in Polish: Prawo telekomunikacyjne), published in Journal of Laws (Dziennik Ustaw) No 171, item 1800 with later amendments. The subscriber may transfer his or her claims (contractual claims against the registrar) to another entity, if it comes with the assumption of debt from subscriber fees.

I realize that this differs significantly from the US law. Easpecially if you read Kremen v. Cohen, 335 F.3d 1035, (9th Cir. 2003).

The parties do not dispute that domain names are a kind of property. This proposition appears to be consistent with California’s broad definition of “property.” See Cal. Civ.Code §§ 654 & 655(property includes “all inanimate things which are capable of appropriation or of manual delivery”). The parties disagree, however, whether a domain name like sex.com is the kind of intangible property that can support a claim for conversion. At issue is whether such intangible property constitutes a sufficiently definite right and whether such intangible property must also be merged into a document or other writing.

Same opinions were issued in Harrods, Ltd. v. Sixty Internet Domain Names, 302 F.3d 214 (4th Cir. 2002), Caesars World, Inc. v. Caesars-Palace.Com, 112 F. Supp. 2d 502 (E.D. Va. 2000) or In re Larry Koenig & Assoc., 2004 WL 3244582 (Bankr. M.D. La. 2004). But there are also different judgments such as Dorer v. Arel, 60 F. Supp. 2d 558 (E.D. Va. 1999), Zurakov v. Register.com, Inc., 304 A.D.2d 176, 760 N.Y.S.2d 13 (1st Dep’t 2003), Network Solutions, Inc. v. Umbro International, Inc., 259 Va. 759, 529 S.E.2d 80 (2000) and the latest I know which is Palacio del Mar Homeowners Assn., Inc. v. McMahon, — Cal.Rptr.3d —, 2009 WL 1668294 (Cal. App. 4 Dist. June 16, 2009). The Court ruled that a domain name registration is not property, but merely supplies the intangible contractual right to use a unique domain name for a specified period of time. Does it sound familiar to you?

See also my post entitled “Polish case law on domain names“.

I was wrong, domain names, case X GC 1245/03

October 6th, 2009, Tomasz Rychlicki

Well, as I wrote in my previous post – errare humanum est. My good friend Marcin Sochacki reminded me that there is an earlier judgment of the Polish court regarding the cybersquatting issue. It is a judgment of the District Court in Łódź, X Commercial Division of 22 June 2004, case file X GC 1245/03, Microsoft versus Robert Rudecki, it was decided in absentia. The case concerned microsoft.pl and microsoft.com.pl domain names. Unfortunately, I do not have an access to the text of this decision.

See also my post entitled “Polish case law on domain names“.

Finally, first

October 1st, 2009, Tomasz Rychlicki

Update on January 29, 2010.
Just see my post entitled “I was wrong“. ;)

I may be wrong (errare humanum est right?) but it looks like the Appellate Court in Białystok in its judgment of 6 May 2008, case act signature I ACz 364/08 decided the first Polish court’s case regarding the cybersquatting issue. The court simply ruled:

Moreover, the registration and use of the Internet domain name which is the same as someone else already existing domain, may be regarded as an act of unfair competition.

The definition is provided in the article 3(1) of the Polish Act of 16 April 1993 on Combating Unfair Competition – CUC – (in Polish: ustawa o zwalczaniu nieuczciwej konkurencji), Journal of Laws (Dziennik Ustaw) No 47, item 211, with later amendments.

Article 3

1. The act of unfair competition shall be the activity contrary to the law or good practices which threatens or infringes the interest of another entrepreneur or customer.

The court also noted that

although the act of unfair competition takes place only when the arguing entrepreneurs can be regarded as competitors. However, there are not excluded situations where a website under a disputed domain name will be providing goods or services different from those associated with a given name on the non-virtual market. Also in such situation a person may request for the protection against violations of the rights to the domain name, especially when it is registered in order to block a domain by a competitor, if it identifies an inactive website or a webpage or a website which is not updated nor offering any goods. Registration of such domains leads to a substantial impediment to market access for other entrepreneurs, which is in violation of article. 15 of the Polish Act of 16 April 1993 On combating unfair competition. Such actions, however, have also an economic overtone, and therefore they concern the economic rights.

See also my post entitled “Polish case law on domain names“.

It is out now!

July 14th, 2009, Tomasz Rychlicki

My dear readers. All P.T. readers. I would like to draw your attention to the International Free and Open Source Software Law Review. It is an absolutely free publication on legal aspects of free and open source software. The first issue is available for download (both HTML or PDF versions) directly from its website. There, you’ll find couple of interesting articles. In particular, I recommend Shane Coughlan’s and Andrew Martin Katz’s article titled “Introducing the Risk Grid“. I will also immodestly mention that from the very beginning I was involved in the creation of the IFOSS L. Rev. and I am currently a member of the editorial board. Of course, I invite everyone to write for his periodical. Please do not hesitate to submit your papers.

There is another “Polish theme” in the IFOSS L. Rev. Great logotype and covers for the journal were created pro bono by my good friend Tomasz Politański.
IFOSS L. Rev.

Funny terms and Carl wants to be sued

September 4th, 2008, Tomasz Rychlicki

There is an article available at valleywag.com website commenting on funny terms from TOU/TOS licenses. There is also a post regarding recent action of Carl Malamud at slashdot.org website. Go Carl!

California claims copyright to its laws, and warns people not to share them. And that’s not sitting right with Internet gadfly, and open-access hero, Carl Malamud. He has spent the last couple months scanning tens of thousands of pages containing city, county and state laws — think building codes, banking laws, etc. Malamud wants California to sue him, which is almost a given if the state wants to continue claiming copyright. He thinks a federal court will rule in his favor: It is illegal to copyright the law since people are required to know it. Malamud helped force the SEC to put corporate filings online in 1994, and did the same with the patent office. He got the Smithsonian to loosen its claim of copyright, CSPAN to stop forbidding people from sharing its videos, and most recently Oregon to quit claiming copyright on state laws.

I’d like to remind you of some of my post I’ve “commited” regarding licenses’ issues. Among other things are posts such as “Oh, these Internet’s contracts” and “TOS not so absolute“.

Another interesting judgment

July 15th, 2008, Tomasz Rychlicki

Sometime ago I did a post entitled “It’s going to be interesting decision“. And this decision was issued yesterday.

Blizzard owns a valid copyright in the game client software, Blizzard has granted a limited license for WoW players to use the software, use of the software with Glider falls outside the scope of the license established in section 4 of the TOU, use of Glider includes copying to RAM within the meaning of section 106 of the Copyright Act, users of WoW and Glider are not entitled to a section 117 defense, and Glider users therefore infringe Blizzard’s copyright. MDY does not dispute that the other requirements for contributory and vicarious copyright infringement are met, nor has MDY established a misuse defense. The Court accordingly will grant summary judgment in favor of Blizzard with respect to liability on the contributory and vicarious copyright infringement claims in Counts II and III.

Open WiFi ≠ copyright infringement

July 11th, 2008, Tomasz Rychlicki

You will find more details regarding my laconic topic in the article available at www.arstechnica.com website. Logic won over lobby. Very good.

Smashing magazine Techkultura

June 3rd, 2008, Tomasz Rychlicki

I sometimes ask myself where the inspiration ends. The Polish version of my post also deals with some other less or more legal issues but I do not think that informing my English readers about Polish companies which use at least “strange TOS” of Twitter’s clones is relevant. I’m also not sure if its good to spare some money from the project’s budget that one could spend for a legal advice or some consultations with lawyers to answer the question if the TOS you provide are written in accordance with the law.

What a disclaimer

May 26th, 2008, Tomasz Rychlicki

Not so long time ago I’ve published a post entitled “Enforcing EULAs“. Meanwhile, looking through the net I found such release as Ahead.Nero.v8.3.2.1.Incl.Keymaker-EMBRACE and I’ve also noticed such a statement in the .nfo file.

EMBRACE, nor its members, can be held responsible
for anything they release. If it is illegal in your
country (as it is in most), you ARE NOT ALLOWED to
use it, under any circumstances. We are in the scene
for the fun, NOT to harm software developers. Good
software deserves your respect, go buy it!

Our software is released “as is”. We are in no way
to be blamed for anything that happens to your pc if
you use this. The author here by disclaims all the
warranties related to this software, expresed or
implid, including damage to hardware/software and/or
any date from the user of this product.

Your use of this product assumes that you have read
and accepted this disclaimer.

Do I need to mention that it is really easy to aviod any legal problems just by the use of free software alternatives? More details regarding this .nfo file are available at nfodb.com website. Some of my post that may touch similar issues are gathered under contract law category.

Enforcing EULAs

April 29th, 2008, Tomasz Rychlicki

Selling botnets for particular attacks, black markets for stolen identities, and malware construction kits are all now par for the course for the increasingly commercial malware industry. Discovering that malware authors have actually turned to End-User License Agreements (EULAs) in an attempt to protect their own intellectual property, however, most definitely qualifies as something new, different, and beautifully ironic.

More details in the article available at arstechnica.com website.

What about the eforcement of such “agreement” and the US courts? I guess there is no dubt that such contract would be deemed as null and void. See holding in the case Weisbren v. Peppercorn Prods., Inc., 41 Cal. App. 4th 246, 262, 48 Cal. Rptr. 2d 437, 447 (1995), citing Lewis & Queen v. N.M. Ball Sons, 48 Cal. 2d 141, 150, 308 P.2d 713, 719 (1957).

The courts generally will not enforce an illegal bargain or lend their assistance to a party who seeks compensation for an illegal act. The reason for this refusal is not that the courts are unaware of possible injustice between the parties, and that the defendant may be left in possession of some benefit he should in good conscience turn over to the plaintiff, but that this consideration is outweighed by the importance of deterring illegal conduct. Knowing that they will receive no help from the courts and must trust completely to each other’s good faith, the parties are less likely to enter an illegal arrangement in the first place.