27 July 2000
Internet retailer Buy.com has been forced to pay a Sydney businessman his asking price for an Internet domain name the US company claims is critical to its marketing, after legal action to wrest control of the name was dismissed by the Federal Court.
Buy.com was launched in Australia in May by eVentures, a partnership between News Corp and Softbank to take large American Web brands to international markets. However, heavy TV advertising by the company has directed Australian Internet shoppers to its US Web site, which then bounces them back to a local sub-site, because the Buy.com.au domain had been registered by Mr Duncan Angus almost a year before.
Buy.com and eVentures launched the Federal Court action demanding the name be turned over in April, just weeks before the official launch of its e-tailing business in Australia, after Mr Angus placed press ads promoting an auction site at the address. Mr Angus runs an online training business, Angus Knight Learning, but had also registered a business name associated with buy.com.
Buy.com argued that Mr Angus had no intention to trade at the Web site and that he was ``passing off" on Buy.com's reputation in Australia. The action was dismissed by a Federal Court judge on Monday, and the two parties have settled the matter for an undisclosed sum.
``It's a strong message that you can't assert you have rights to a generic name and expect people to roll over," said Mr Stephen White, a lawyer acting for Mr Angus.
Mr Angus will take down his auction site this week, and eVentures will begin using the domain in its marketing to Australian customers. EVentures Australia chief executive Mr Andrew Isles said in a statement: ``We have settled the proceedings between Duncan Angus and buy.com on terms which are confidential to the parties but involve buy.com securing the domain name buy.com.au."
It is the second time eVentures has had to pay a large sum for a local domain. Adelaide mortgage broker Great Southern Home Loans was paid several hundred thousand dollars to hand over eloan.com.au.
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