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    Conflict of Law

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    BUG, Inc., a company based in the United States., designs, manufactures, and sells electronic recording devices. These devices are used by law enforcement agencies to intercept and record sounds and voices. The equipment taps into telephone wires, cell phone transmissions, and picks up sounds and voices through the walls of a house or in open-air locations through the use of a remote microphone. Part of the equipment is driven by software written by BUG employees. BUG has exclusive contracts with most state and federal law enforcement agencies throughout the United States. BUG is thinking about expanding its sales to international markets. Currently, half of its manufacturing plants are in foreign countries and half are in the U.S. The company's logo is a ladybug wearing a set of headphones.

    BUG has come to you for advice regarding its international expansion. BUG wants to sell its products via the Internet. BUG is concerned about privacy, security, and infringement issues.

    BUG is also concerned because a company that buys famous and/or company name domain names seems to own the rights to the domain name BUG.com. The company is willing to sell the domain name for a high price. Please give BUG advice on any international conflict of law issues that could possibly affect the company. Please be detailed in your response and provide references supporting your answer.

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    Solution Preview

    The company that has bought famous company names and has rights to BUG.com is violating the cyber squatting law. In the USA the law is U.S. Anti-cybersquatting Consumer Protection Act (ACPA) and BUG has to establish that the company has registered this name to charge high prices for this domain name. In other words bad faith intent has to be established. Virtual Works, Inc. v. Volkswagen of America, Inc.

    In case of international law if the company is located in a country like China or Russia the Uniform Domain Name Resolution Policy is applicable. If BUG.com makes a complaint with the Uniform Domain Name ...

    Solution Summary

    The solution answers the question below in 329 words, including a discussion regarding expanding services into the Internet market and advice on domain names and legal issues.