Unfair Competition Prevention Act Article 2, Paragraph 1, Item 19: Unfair Acts Regarding Domain Names
This item defines as unfair competition the act of acquiring, holding, or using a domain name that is identical or similar to another person's indication of specific goods or services for the purpose of gaining unfair profit or causing damage to others.
Domain names are generally registered on a first-come, first-served basis. Therefore, there are cases where websites are created and business is conducted using the names of famous companies or well-known product names. Such cases may involve free-riding on the reputation of famous companies or damaging their reputation. It is also possible that acquired domain names could be resold to famous companies at high prices (forcing them to buy them back).
Given this situation, acts such as the unfair acquisition of domain names are regulated as unfair competition.
Requirement 1: "For the purpose of gaining unfair profit or for the purpose of causing damage to others"
The purpose of gaining unfair profit refers to the purpose of unjustly seeking profit for oneself or others in a manner contrary to public order and morals or the principle of good faith. Furthermore, the purpose of causing damage to others refers to the purpose of inflicting tangible or intangible damage on others, such as financial loss or loss of reputation.
Examples that fall under this requirement include (i) the act of first acquiring and holding a domain name identical or similar to the indication of specific goods or services in order to force the user of said indication to buy it back at an unreasonably high price, and (ii) the act of opening an adult site under a domain name identical or similar to another person's indication of specific goods or services for the purpose of diluting or contaminating that indication.
Requirement 2: "Indication of specific goods or services"
An indication of specific goods or services refers to names, trade names, trademarks, marks, or other indications of goods or services related to a person's business. Here, in order to qualify as an indication of specific goods or services, the indication must possess a self-other distinguishing function or a source-identifying function, just as with "indications of goods or services" under Article 2, Paragraph 1, Items 1 and 2 of the Unfair Competition Prevention Act. Therefore, generic names, common indications, or one's own name that "do not possess" a self-other distinguishing function or source-identifying function are considered not to fall under the category of indications of specific goods or services.
Note that regarding unfair competition under this item, claims for injunctions and damages based on Articles 3, 4, and 5 of the Unfair Competition Prevention Act are possible.
・Unfair Competition Prevention Act Article 2, Paragraph 1, Item 19
(Definitions)
Article 2: In this Act, "unfair competition" means any of the following:
(xix) The act of acquiring or holding the right to use a domain name that is identical or similar to another person's indication of specific goods or services (meaning names, trade names, trademarks, marks, or other indications of goods or services related to a person's business), or the act of using such a domain name, for the purpose of gaining unfair profit or for the purpose of causing damage to others
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