Expert: Timmy Chou - 6/24/2011

Question
There has been a seller of reportedly forged materials who recently decided to purchase domains copying all the top legitimate companies in my industry.  They buy the same domain name but add inc or .org to the domain and put our company's names on the website so that unknowing customers buy these items likely thinking they are buying from a reputable source.  I'd like to know if this is legal practice and if there is any legal action I can take.  I am also an all expert and appreciate you taking your time to help me.

Answer
Thank you for your question!

Sorry for the delay as the system just notified me this morning of your question.

As I always mention, Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is likely a legal (perhaps criminal) case.  I am not an attorney and cannot give you legal advice or give you any opinion as the strength of your case in court.  I would tend to think that you would have some grounds to have your attorney send a cease and desist letter, and possibly suing them.  Your position is stronger if your products and names are trademarked keep in mind.

If you have some additional leverage with state license agencies, consumer protection offices, trade associations, or AG's offices use these as well.  The pirates must get the idea that you will stop at nothing to go after them and then they will discover their own business reasons to move on to other victims and leave you alone.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

Confidential, no public record
Limited exchange of documentation, information
Quick, don't have to wait for a court date
Arbitrators have expertise in the subject matter and are trained in conflict resolution
Cheaper than litigation
Preserves business relationships

Negatives of Arbitration

It's a compromise, no %100 winner
Complex arbitration can be costly
If not satisfied, may litigate the arbitration procedure
Poor results with an unskilled arbitrator
Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

Neutral mediator can objectively suggest alternatives not considered before
Parties are directly engaged in negotiating the settlement
Can be quicker than litigation
Less costly than litigation
Preserves business relationships
85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

may not reach a binding decision
unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

a clear winner and loser
uses a prescribed set of procedures
more predictable outcomes
is final

Negatives of Litigation:

waiting for court dates can do more harm
usually more expensive than mediation and arbitration
part of the public record