If a site is registered before the law goes into effect, the trademark holder can demand the cancellation or return of a domain name that uses its trademark or famous name. The Senate approved a similar bill in August. Now, lawmakers must go into a conference session to hammer out the differences between the two measures. The legislation is supposed to clarify the rights of trademark holders, but instead, it raises a number of questions and will likely spark a heated debate as it heads toward President Clinton's desk.
Companies argue that such Internet domains dilute their trademarks.
While some companies pay large sums to buy Internet addresses that use their trademarked names, many have sued to stop the use of the domain names. But the courts haven't always been sympathetic. The Clinton administration, in a letter to Rep. Rogan in August, expressed concern about the bill, arguing that existing laws sufficiently protect famous names and trademarks. This just goes too far. This is a bad law.