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Aardvark Weekly 16 Apr 99
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Dateline: 14 May 1999 All-day Edition
Read Yesterday's Edition

Under Investigation

Continued...
In his reply to the Telecom writ, Henk asserts that the phrase "Yellow Web Pages" is not a registered trademark -- which is true, but unfortunately a trademark doesn't have to be registered to be considered enforceable. I guess the judge will have to decide whether it's excluded from trademark protection under Section 24 of the act.

The Trademark Act

In respect to Telecom's claim of trademark over the colour yellow on the Web -- the veracity of this claim is yet to be tested and other parties, such as Trade & Exchange, are actively engaged in legal action to challenge Telecom's assertion.

An Extremely Interesting Situation
Regardless of the rights and wrongs of the parties positions in this matter, the claims of Henk Klos raise a very interesting and potentially challenging precedent for the legal system.

If the Yellow Web site has been sold to an overseas operator, could Telecom enforce its alleged trademarks on that operator?

I wonder why the owners of the New Zealand Yellow Pages or New Zealand Yellow websites don't seem to have incurred the wrath of Telecom? Too expensive? Too hard?

If Telecom are prepared to leave these sites unmolested by its land-sharks then surely they're going to have trouble protecting their alleged Net trademarks against exploitation by other overseas-based but NZ-targeted operators. To retain trademark protection, the owner has to assert the rights that those trademarks offer in a regular and consistent manner me thinks. Allowing these other sites to use the alleged trademarks unchallenged must surely weaken their claims for trademark protection and their case against Henk.

Just A Few Other Yellow Pages Sites

Will they perhaps only enforce their claims on those overseas sites which attempt to sell services to NZ-based customers?

Will they simply pick on only those who are not in a position to properly defend themselves?

The borderless operation of the Net threatens to open a whole new can of worms

As an aside, I wonder why NZ.com changed the URL http://nz.com/webnz/GoldPages/ to point to their Platinum Pages? Was "gold" a little too close to the colour yellow for somebody?

Fault On Both Sides
However... Henk has himself to blame in some respects.

Firstly, he could have perhaps avoided crossing sabres with Telecom by placing a simple advisory message on all his web pages. Something like:

This Is Not The Telecom Yellow Pages

would have effectively removed any doubt in the mind of a visitor who might have been confused by the alleged similarity to Telecom's offering and scuttled Telecom's claims of "passing off."

Henk should have also invested a few dollars in trying to register the trademarks "yellow web pages" or "yellow web." This would have given him a measure of protection against Telecom's claims -- or at least alerted him to the fact that Telecom would not let such a claim go unchallenged.

It's also worth remembering that the key to success on the Net is not in trying to duplicate that which is already out there -- but through the development of new and better ideas, concepts and implementations. The very fact that there are so many "yellow pages" websites on the Net makes it almost impossible for "a little guy" to gain any significant share of this market anyway.

Simpson's first rule of Net-success: "Don't compete -- create new markets and own them."

The Bottom Line
Until the lawyers have finished spending large amounts of their client's money we won't really know whether it's safe to use the colour yellow or the term "yellow web pages" on an NZ website.

In the meantime, anyone contemplating the development of a site using either of these alleged trademarks would be advised to:

  1. make sure the site is hosted offshore
  2. set up an off-shore trading entity to run it
  3. ensure your personal assets are in a trust
  4. consider doing something more original

What do you think?
Quite frankly I don't think Telecom has anything to fear from other online business directory sites. Telecom has: "critical mass", a hugely powerful marketing machine, a massive sales force and a pretty damned good website. To harass Henk Kloss to the point of seeking his arrest smacks of petty-minded vindictiveness of the worst kind -- truly the attitude of an organisation which survives on the strengths of its government-given monopolies.

I find it more than a little unjust that an offshore company can use the alleged Telecom trademarks on the Web with impunity while an NZ business or individual will come under an expensive legal attack for doing the same thing.

Henk has made a lot of fundamental mistakes in the way he's gone about things, which is a shame because if Telecom are able to establish a precedent through obtaining a successful prosecution in Henk's case it could make it far more difficult for other NZ entities to challenge Telecom's claimed monopoly on the colour yellow and the phrase "yellow web pages."

Doubtless this story will soon get picked up by the mainstream media so if readers would like to voice their comments in the Aardvark Forums I'll try to direct other news sources to them. Hopefully this will ensure they can accurately report the opinions of Net users and the industry (or am I doing ISOCNZ's job for them here? :-)

What do you think? Why not have your say!

Note: I'm not a lawyer - I don't even pretend to know any lawyers. Despite what you may think I am not tendering any legal advice or opinion here. Lawyers are encouraged to have their say on this issue, however -- just don't send me the bill!

Others are advised to consult their own lawyers when seeking advice and not to act on any opinion or information contained in this column.

Hey, that sounded pretty good -- maybe I should have been a lawyer after all?

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