Flippa Auction - http://flippa.com/auctions/94312 - Legalities of Brand Usage

[HUM]

Well, wanted to delve into the realm of employing a brand name, here "iphone", in your url to sell the brand's accessories.

http://flippa.com/auctions/94312

I am curious to get your thoughts/feedback. The seller contends - "We hold a written permission to use the term "iPhone" with the contingency that we do not sell any products that infringe on their copyright agreements, meaning, we can't sell anything with the "Apple" logo or name on it. Other than that, we are free to use it as we see fit. has a written disclaimer that he authorized to use the domain."

In my opinion no company would allow the use of the brand in such a manner, especially a company like Apple that values and guards its brand ferociously. (can anyone say gizmodo:)

[HUM]

Having stated my initial thought, nevertheless there are innumerable sites that operate with a brand name in the URL..ps3, XBox, wii, telecoms, computer co's and on and on. How does it work? You got to a be a small fish in the pond to escape brand infringement?

[Clinton]

HUM, we've had a few good discussions about trademarks including in this thread with inputs from several members and a good post from Martin.

I seriously doubt he has an agreement with Apple. Who does he claim to have this permission from? Apple themselves?

With respect the small fish who get away - they tend to put their sites up for sale on Flippa the moment they get a letter from an attorney. They don't, of course, disclose that they've been threatened with legal action - they just want to get the hell out before the brown stuff hits the fan.

[HUM]

Thanks Clinton, certainly a detailed posting. Yes, he claims that he has a letter directly from Apple...

I agree that Flippa has to step up to the plate and position itself as a conduit for credible place for site sales. Would I be willing to pay a premium for such trust over and above the current fee structure?..certainly.

Otherwise there is certainly an opportunity to provide such a a growing medium with greater amount of due diligence at the onset.

[Clinton]

Well, Flippa is washing its hands off any DD. The way they see it is that it's a murky lake for the marketplace operator themselves to dive into.

In any case, as a buyer you can't really rely on a third party like Flippa to do your DD. Some buyers have been chatting to members on these forums offering DD services.

I suppose for those, like you, willing to pay for a trustworthy and knowledgeable person, having a paid consultant beats any trust the marketplace claims.

DD at the onset? That's a difficult one - Flippa would lose most of their listings and have to close shop if they listed only the sites that would pass the kind of DD people like me apply.