Big win for credit report company; CitizenHawk may reap benefits.
In what may set a record for most domains subject to a single domain name arbitration, the parent company of FreeCreditReport.com has won the transfer of 1,017 domain names registered by California-based NetCorp.
The domain names are mostly typos of the company’s FreeCreditReport.com web site, which is widely advertised as a free credit check service. Examples include fareecreditreport.com, freecmeditreport.com, and freecqeditreport.com.
NetCorp argued that FreeCreditReport.com is merely descriptive, and that the company did not have trademark rights at the time it registered the domain names. The panel didn’t buy it.
This case could be a big win for anti-typosquatting company CitizenHawk, which represented FreeCreditReport.com’s parent company ConsumerInfo.com. CitizenHawk has struck “pay for performance” deals with clients in the past, which gives the company rights to monetize any domains it recovers for a fixed period of time before handing them over to the client.
“This case could be a big win for anti-typosquatting company CitizenHawk, which represented NetCorp.”
Of course you meant “…could be a big win for…CitizenHawk, which represented ConsumerInfo.com, Inc”.
Thanks Patrick, fixed.
Interestingly; based on a cursory review of the facts; there’s a good chance that NetCorp would/will be able to keep them through a US court action.
There’s at least a reasonable chance they could get the TM canceled; based on the phrase, “free credit report” being merely generic-words descriptive of the service/s they offer.
Assuming any kind of reasonable PPC income, this one could be worth the fight.
@ Steve – I must admit it seems that the USPTO and courts are not consistent on this. Mattress.com and Hotels.com get rejected, but FreeCreditReport.com gets approved?
“rights to monetize any domains it recovers for a fixed period of time before handing them over to the client.”
This seems strange to me…monetize the same as the person they were complaining about? Like if you catch a bank robber your payment is they let you rob the bank yourself and keep the money 🙂
Tim – my understanding is the client gets to put some limits on how the domain is monetized. They might even just forward the traffic to FreeCreditReport.com but pay a commission on each resulting sale. But yeah, it’s strange. I guess from the client’s perspective, they probably wouldn’t have gotten the domains back anyway without using CitizenHawk, so waiting another 6 months or so (or paying for the traffic in that time) is no big deal.
NetCorp, should go after CitizenHawk for practicing law without a legal license. Profiting and revshare deals CitizenHawk does are all highly illegal by CA Bar and US legal system.
Andrew you should do a story on CitizenHawk and their illegal practices, including practicing law without a license.
I agree with Tim. That’s one heck of a hypocritical business model. I feel like there’s an even better analogy to make but I can’t decide what.
Citizenhawk are typosquatters in white gloves
Hi,
This is funny…when thid article came out a day ago:
Interesting…
FTC Cracking Down On The Not So Free Credit Reports
Quote:
The US Government and the Federal Trade Commission are cracking down on the not so free credit report services. New rules and possible legislation are currently being worked on to prevent consumers from being misled into paying for a service they can get for free.
In 2003, the Fair and Accurate Credit Transactions Act was passed by Congress. This act allowed every consumer to obtain one free credit report annually from each of the three main credit reporting companies.
These companies are Experian, Equifax and TransUnion. The free reports can be obtained through the government website, annualcreditreport .com.
Since the passing of the act that allows everyone to get free credit reports, credit reporting companies have played off this in their ads. Specifically, Experian with it’s freecreditreport .com ads.
The catchy freecreditreport .com ads and website name, often confuses many consumers in thinking that is where to go to obtain their free credit report. Unfortunately, if the consumer is not careful then they will be signed up for a monthly credit reporting service that is not free.
That is why Congress is making the FTC issue new rules addressing what many call deceptive advertising. The FTC is currently working on these new rules and the public can submit their comments on the subject till November 30th.
Now New York’s Senator Charles Schumer is asking for the FTC to tighten up even more on such not so free credit report practices. Schumer is even willing to introduce legislation if he needs to help protect the consumers.
What Schumer wants to force the credit reporting services to disclose on all of their ads the same disclosure they are required to do on their website and their printed materials. That disclosure is that the consumer can get the report for free at the government site.
Schumer wants the credit reporting companies to disclose that their offer for a free credit report has strings attached more clearly than what they currently are. They will also have to start showing the free credit report they are offering to the consumer before the consumer is asked to enter their credit card information in.
In a statement released by Schumer he states; “If these companies want to say – or sing for that matter- that they are giving people free credit reports, then they can’t charge people $15 a month, simple as that.”
Consumer credit reporting started back in the 1990s. ConsumerInfo .com started offering the service to the public and acquired the website domain name, freecreditreport .com.
Through the website, ConsumerInfo offered a free credit report with a subscription to their monitoring services. In 2002, Experian purchased ConsumerInfo. Since then, television and radio ads have their catchy freecreditreport .com gingle to where it is a song most consumers can sing.
Between the freecreditreport website name, catchy gingle and online ads, many people feel that it is the website for their free credit report. In reality it is not free.
Once on the website there is fine print that states by receiving the free credit report, the consumer is signing up for Experian’s credit monitoring service and will be charged $14.95 a month for the service. Many feel that most people do not realize this and that this is actually a bait-and-switch advertising technique.
The website asks for the consumer’s credit card information, but some consumers think this is just for identity verification. The consumer can cancel the service in seven days without being charged and allowed to keep the credit report. Unfortunately, many consumers either forget to cancel or do not realize they are being charged until after the charge shows up on their credit card bill.
For years the FTC has claimed the ads and practices of the credit reporting companies are confusing the public and misleading them away from the free credit report service available on the government website. It is estimated that nine million Americans spend around $700 million a year on credit monitoring services.
Experian has been fined $1.2 million by the FTC over the past five years. The revenue from the freecreditreport site has been worth it for Experian to pay the fines.
The credit monitoring industry is seeing major revenue increases over the past year with the economic concerns many consumers are facing. Experian is almost double the size of all other credit monitoring services together.
The FTC has tried to get Experian to give up the freecreditreport .com domain name to keep the consumers from being confused. Experian is planning on keeping the site.
FTC has also created another website freecreditreport .gov to try to help with the public confusion. Also to get the word out about the questionable practices of the not so free credit report website, the FTC is creating their own ads based off those from Experian.
You can see one of the ads from the FTC here.
For most people the three free credit reports through the government website is all the credit monitoring they need. It is recommended that the average consumer request one of their free credit report through the government website once every four months. To obtain your free credit report with no strings attached, go to annualcreditreport .com.
Written by Denise Clay
Interesting…
FTC Cracking Down On The Not So Free Credit Reports
Quote:
The US Government and the Federal Trade Commission are cracking down on the not so free credit report services. New rules and possible legislation are currently being worked on to prevent consumers from being misled into paying for a service they can get for free.
In 2003, the Fair and Accurate Credit Transactions Act was passed by Congress. This act allowed every consumer to obtain one free credit report annually from each of the three main credit reporting companies.
These companies are Experian, Equifax and TransUnion. The free reports can be obtained through the government website, annualcreditreport .com.
Since the passing of the act that allows everyone to get free credit reports, credit reporting companies have played off this in their ads. Specifically, Experian with it’s freecreditreport .com ads.
The catchy freecreditreport .com ads and website name, often confuses many consumers in thinking that is where to go to obtain their free credit report. Unfortunately, if the consumer is not careful then they will be signed up for a monthly credit reporting service that is not free.
That is why Congress is making the FTC issue new rules addressing what many call deceptive advertising. The FTC is currently working on these new rules and the public can submit their comments on the subject till November 30th.
Now New York’s Senator Charles Schumer is asking for the FTC to tighten up even more on such not so free credit report practices. Schumer is even willing to introduce legislation if he needs to help protect the consumers.
What Schumer wants to force the credit reporting services to disclose on all of their ads the same disclosure they are required to do on their website and their printed materials. That disclosure is that the consumer can get the report for free at the government site.
Schumer wants the credit reporting companies to disclose that their offer for a free credit report has strings attached more clearly than what they currently are. They will also have to start showing the free credit report they are offering to the consumer before the consumer is asked to enter their credit card information in.
In a statement released by Schumer he states; “If these companies want to say – or sing for that matter- that they are giving people free credit reports, then they can’t charge people $15 a month, simple as that.”
Consumer credit reporting started back in the 1990s. ConsumerInfo .com started offering the service to the public and acquired the website domain name, freecreditreport .com.
Through the website, ConsumerInfo offered a free credit report with a subscription to their monitoring services. In 2002, Experian purchased ConsumerInfo. Since then, television and radio ads have their catchy freecreditreport .com gingle to where it is a song most consumers can sing.
Between the freecreditreport website name, catchy gingle and online ads, many people feel that it is the website for their free credit report. In reality it is not free.
Once on the website there is fine print that states by receiving the free credit report, the consumer is signing up for Experian’s credit monitoring service and will be charged $14.95 a month for the service. Many feel that most people do not realize this and that this is actually a bait-and-switch advertising technique.
The website asks for the consumer’s credit card information, but some consumers think this is just for identity verification. The consumer can cancel the service in seven days without being charged and allowed to keep the credit report. Unfortunately, many consumers either forget to cancel or do not realize they are being charged until after the charge shows up on their credit card bill.
For years the FTC has claimed the ads and practices of the credit reporting companies are confusing the public and misleading them away from the free credit report service available on the government website. It is estimated that nine million Americans spend around $700 million a year on credit monitoring services.
Experian has been fined $1.2 million by the FTC over the past five years. The revenue from the freecreditreport site has been worth it for Experian to pay the fines.
The credit monitoring industry is seeing major revenue increases over the past year with the economic concerns many consumers are facing. Experian is almost double the size of all other credit monitoring services together.
The FTC has tried to get Experian to give up the freecreditreport .com domain name to keep the consumers from being confused. Experian is planning on keeping the site.
FTC has also created another website freecreditreport .gov to try to help with the public confusion. Also to get the word out about the questionable practices of the not so free credit report website, the FTC is creating their own ads based off those from Experian.
You can see one of the ads from the FTC here.
For most people the three free credit reports through the government website is all the credit monitoring they need. It is recommended that the average consumer request one of their free credit report through the government website once every four months. To obtain your free credit report with no strings attached, go to annualcreditreport .com.
Written by Denise Clay
http://www.huliq.com/7504/88676/ftc-cracking-down-not-so-free-credit-reports
____
Peace!
Dan
http://actionmanage.com/
@Andrew; regarding your above:
“@ Steve – I must admit it seems that the USPTO and courts are not consistent on this. Mattress.com and Hotels.com get rejected, but FreeCreditReport.com gets approved?”
After reviewing the FreeCreditReport.com TM file in detail, a couple thoughts:
In fact, they were initially refused registration for two reasons:
#1. Likelihood of confusion with the previously registered (though Supplemental Register only) CreditReports.com.
#2. Merely descriptive.
Through a well-written attorney response, they were able to convince the PTO that there was no confusion; and that FreeCreditReports.com had acquired distinctiveness through extensive, widespread use over a seven-year time period.
Another difference over Hotels.com and Mattress.com TM filings seems to be the fact that their mark in three words long as opposed to “just” one with these other two.
In any case, good info, examples, and guidance from all three of these cases.
Free credit reports in my ears is completely generic? How Can it be approved As a tm? I am sure this was a normal term 50 years before the Internet
Christopher Hofman
How can the government sanctioned FTC operate http://www.FreeCreditReport.gov while the government sanctioned USPTO grants Experian a trademark for “Free Credit Report”?
How can the government have it both ways?
Tim –
I like your bank analogy:
“…like if you catch a bank robber your payment is they let you rob the bank yourself and keep the money”.
But, I would suggest the following refinement: that they do not let “you … keep the money”; but rather let you ‘collect interest’ on the money for a [6 month/fixed] period of time before returning it.
Steve
The operative doctrine in trademark law is that of a term being “deceptively misdescriptive”.
To say that “free credit reports” is “descriptive” of the racket these people conduct, is to do violence to the word “free”.
It’s a scam intended to divert people from the free US government annual credit report program.
if its an approved tm then squatters beware!
there is a lot wrong with uspto process but the same is true about other government processes.
The simple truth is plagiarism in any form is not legal. Secondly, ICANN enforces the dropping of Domains hence no legal action is required – if their board approves the claims being made is true.
Harboring criminals is against the law – this is true with any company knowingly allows fraudulent act is being performed under their protection.
Falcon – good response.
Who is Alias Encore?
They must be very desperate if they have to try steal someone else success and parade around as if they did it.
Its a sign of a very sneaky and unprofessional group.
I agree with Tim. I feel like there’s an even better analogy to make but I can’t decide what.