February 6th - 2004

Legal Beat: Domain names

REALTOR X, a principal broker in the U.S. firm XYZ, was technologically savvy and constantly looking for ways to use the Internet to promote his firm and drive additional traffic to his web site.

REALTOR X, a principal broker in the U.S. firm XYZ, was technologically savvy and constantly looking for ways to use the Internet to promote his firm and drive additional traffic to his web site.

Being an early adapter to the Internet, he had registered, but not used, domain names that incorporated or played on the names of many of his competitors and their firms, including ABC REALTORS.

REALTOR X and his information technology staff concluded that one way to drive traffic to the firm’s web site would be to take advantage of the search engines commonly used by potential buyers and sellers. They realized that when potential buyers or sellers searched on key words like “real estate” or “REALTORS” or similar words, lists of domain names would appear. They also determined that when consumers searched the Internet for “BC REALTORS,” one of the domain names that might appear would be REALTOR X’s domain name, abcREALTOR.com.

REALTOR X decided to take advantage of the other domain names that he had previously registered and pointed several that used the names of his competitors’ in various ways including “abcREALTOR.com” to his site.

In a matter of days, REALTOR X learned that he had been charged with a violation of Article 12 of NAR’s Code of Ethics by REALTOR A, the owner of ABC REALTORS. REALTOR A alleged that REALTOR X’s use of the domain name “abcREALTORS.com” presented a false picture to potential buyers and sellers on the Internet.

At the hearing, REALTOR X defended himself indicating that, in his opinion, use of a domain name was not advertising or a “representation” to the public but simply a convenient way for Internet users to find relevant web sites. “Moreover, when web surfers reach my homepage, there is no question that it is my site since I clearly show XYZ’s name and our status as REALTORS,” said REALTOR X.

The hearing panel disagreed with REALTOR X’s justification indicating that while his use of a domain name that employed another firm’s name might not be precluded by law or regulation, it did not comply with the Code’s higher duty to present a “true picture.”  REALTOR X was found in violation of Article 12, presenting an untrue picture in his representation to the public.”

Merv'’s Comments
The use of the Internet brings new challenges such as those noted in this case as well as a RECO discipline decision found at http://www.reco.on.ca/ccd_discipline_tatomir.htm

Make sure that you not only comply with intellectual property laws but also your Codes of Ethics including the CREA Code Article 18 and Interpretation 18-5.

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Maurice Lamond 1986 OREA President Members save at Petro Canada

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Jean-Adrien Delicano

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Ontario Real Estate Association
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The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

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