Core Holdings, whose subsidiary company Internet Strategies previously owned the yahoo.co.za domain, have taken steps in an attempt to re-acquire it from the current owner, Young Adults Helping Others Out.
Internet Strategies owned the yahoo.co.za domain name until its expiration earlier this year. Internet Strategies` argument is based on the trademark ownership asserted by Yahoo Inc.
Kevin Caine, representative of the youth group, says he received a fax on 2 April from Core Holdings` legal representatives, Spoor & Fisher, demanding that the group transfer the domain back to its original owner.
Were it not to comply in this regard, it faced legal action on the grounds of unlawful competition, trademark infringement and passing off.
"If this had arrived [one day earlier], I`d have ignored it," a bemused Caine comments. Its site clearly states that it has nothing to do with Yahoo Inc, and includes buttons redirecting visitors who may have found themselves in the wrong place to the Yahoo portal.
In addition, he says, the domain was acquired for non-profit use, using lawful methods and through the standard procedures of the domain name authority, Uniforum.
"We can`t afford to take it further, but we`re not prepared to just give up the domain," Caine said Monday.
The youth group has since been in negotiation with Spoor & Fisher, and has agreed to relinquish the domain in exchange for a sizable donation to Childline, an unaffiliated charity, as well as coverage of its costs in purchasing of a new domain and changing the Web site`s scripting code.
"We aim to register youngadults.za.org, or .org.za, whichever is available."
But the significance of this turn of events reaches far deeper than a wrangle over ownership in an isolated case. It`s a really difficult situation, comments Michael Silber, a director of Aurica Legal Advisors.
"To be honest, whatever the motivation of [the youth group] it can`t be argued that they acted in good faith. The term 'yahoo` is reasonably generic, but Yahoo Inc has appropriated a reputation, such that anyone trading as that can be considered as passing off."
At the same time, Silber says, the issue suggests a precedent that gives him cause for concern.
"[I have found] the Uniforum procedures generally very good; I`d be surprised if there was an administrative error to blame."
The organisation runs according to good rules, says Silber - those who have the right to a domain name will take precedence over those with no right or equal right. Beyond that, it`s a first come, first serve situation.
The concern arises when a company believes that even though its domain has been suspended, it still has first ownership rights notwithstanding the fact that it hasn`t paid its domain registration renewal fees.
"As much as I believe that Core has the right to the name, when we`re talking about parties with equal rights to a name, it really should be on a first come, first serve basis."
The question of how it transpired that this domain, one of several owned by Core Holdings, was the only one to be overlooked for renewal remains unanswered.
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