Cyber-lawsuits hit Auckland cup site

By NICK PERRY

Two Aucklanders who set up a Website address using the words "America's Cup" have found themselves embroiled in an international test case on "cybersquatting."

Three weeks ago, United States President Bill Clinton signed an American law banning cybersquatters, the term used for companies that register the trademark names of others as Internet addresses in the hope of selling them for huge profits.

Auckland entrepreneurs Justin Nicholas and Aaron Brett, both 32, are being sued here and in California after setting up the Website www.americascup.com.

Last week Quokka Sports - a US-based company handling Websites for Team New Zealand - gained an injunction from a San Francisco judge barring use of the address.

The full case is due to be heard next week.

The men's lawyer, Peter Dengate-Thrush, said any legal action should take place in New Zealand.

But Quokka lawyer Adam Belsky said the US proceedings were valid because the Internet address was registered there, and the site contained US advertising and attracted a US audience.

The men also face legal action at home after America's Cup Properties lodged proceedings with the High Court seeking an interim injunction to remove the Website. The case will be heard in February.

America's Cup Properties Inc - owned by the Royal New Zealand Yacht Squadron and legal guardian of the words America's Cup - said the men had no relationship with the cup organisation and had infringed its trademark.

Executive director Scott Chapman said it was particularly disappointed that the men had caused confusion in the worldwide promotion of the cup "at a time when New Zealand is centre-stage."

America's Cup organisers also argue that the words should not be used by anyone to attract advertisers and misdirect people looking for the official America's Cup Website.

Mr Brett and Mr Nicholas say they face up to $500,000 in legal costs and possible bankruptcy, but they are not prepared to give up their battle because they "believe so passionately" in their right to keep the address, which they say is being visited by 10,000 people a day.

Mr Brett said they planned to argue in court that the words "America's Cup" had been in common use for almost 150 years and could not be owned by anyone.

But Victoria University commercial law lecturer Abraham Van Melle says this defence will face an uphill battle, as trademarks on the words were taken out in the US in 1977 and in New Zealand in 1995.

The Website was taken "off the air" last month after the server faced financial difficulties, and the men have agreed to keep the address down until the legal disputes have been resolved.

But the site can still be visited at yachtracingnews.com.

Related Links:


Quokka Sports (www.quokka.com)

Official America's Cup site (www.americascup.org)

Royal New Zealand Yacht Squadron (www.rnzys.co.nz)

America's Cup Challenge Association (www.acca2000.co.nz)

Americas Cup Resource Centre (www.cup.co.nz)