MXit wins domain dispute

Johannesburg, 13 Oct 2008

MXit has reclaimed its local domain, mxit.co.za, which has been parked in a service called Sedo parking, to generate advertising revenue.

Andre Steyn registered the mixit.co.za domain in 2005, before the company formally launched its popular mobile chat service. Parking is also referred to as cyber-squatting, which means the registered domain is not used as an information tool, but either left or parked to generate money through advertising.

According to Reinhardt Buys, of Buys Attorneys, who represented MXit in the case, Steyn parked the mixit.co.za domain name and associated it with keywords like chat, mobile and mxit. The site was later changed to include link words that did not relate to mobile or chat.

MXit claimed the Web site linked to the domain name confused MXit users and abused the MXit name for revenue-generating purposes.

In response to the claims made by the company, Steyn argued the term mxit is generic. He also argued that since he had registered the name before the service was released, he had the right to maintain the name.

According to the ruling by the SA Institute of IP Law, Steyn said that, while the site was currently parked, he had begun preparing to develop the site into a functional service. MXit disputed this claim, saying there was no evidence to support it.

Steyn also requested the adjudicators in the case find a claim of reverse domain name hijacking. The term refers to people or businesses registering a domain name and holding it ransom. Companies have paid thousands to retrieve a domain name that represents a company trademark.

Buys says the case sets several precedents. The first is that the date of registration of a domain name is not relevant to a dispute case. “MXit only had to show rights in a name that is similar to the disputed domain name on the date of the dispute and not on the date upon which the domain name was registered.”

The second is that parked domains for revenue generation are now equated with cyber-squatting and hijacking. “Parking of a domain name in an online revenue service and use of keywords related to another company's services, amount to abusive use of a domain name.”

MXit holds a policy not to speak to media directly, and could not be reached by the time of publication.