January 2009

Traverse Internet Law runs into many web developer/client disputes. Oftentimes the problems are governed by the terms of the contract in place. However, Virginia has passed Uniform Computer Information Transactions Act (UCITA), which requires web designers and developers to design, build and deliver a project “in accordance with industry standards and practices.”

A Virginia jury recently award $1,138,500 to Blue Line Media, Inc. against its web developer, Redmon Group, for violating this standard of care. At Traverse Internet Law we regularly counsel clients on how to establish appropriate performance standards and measurement benchmarks with an eye towards preventing a project failure.

Traverse Internet Law reports that a federal court in Northern California has awarded Verizon $50,000 per confusingly similar domain name registered by OnlineNIC, a registrar and the owner of the names. All 663 domain names sued upon were alleged to either be close misspellings of the Verizon name or contain the name itself. Verizon is part of a not for profit coaltion fonded last year that fights cybersquatting.

At Traverse Internet Law this case is helpful for those who push the envelope with domain name ownership. At $50,000 per domain name, which the Judge found to be a reasonable award, the practice of cybersquatting as a business strategy can get pretty costly.