Crane components supplier fined for unfair competition in domain name dispute

In October 2012 Bulgaria’s Supreme Administrative Court upheld a decision of the Commission for the Protection of Competition against a local company, Podem, for registering and using a domain name that was confusingly similar to that of a competitor.

The legal proceedings were initiated upon the request of Podemcrane. The parties are competitors in the production and sale of crane components. Both are based in Gabrovo, a city in central northern Bulgaria.

Podemcrane argued that Podem had registered and used the domain name 'podem.org', which is confusingly similar to its own domain name 'podem.bg' and its registered trademark PODEM (Registration 45293 in Classes 7 and 9 of the Nice Classification).

In March 2012 the Commission for the Protection of Competition found that there was infringement under Article 35, Paragraphs 2 and 3 of the Law on Protection of Competition, and fined the defendant €57,500 (approximately $73,000).

The provisions in question prohibit the use of:

• a company name, mark or geographical indication that is identical, or similar, to that of other persons, in a manner that may damage the interests of competitors; and
• a domain name or website design that is identical, or similar, to that of other persons in a manner that may mislead and/or damage the interests of competitors.

The Commission for the Protection of Competition also ordered the defendant to change its domain name. The infringing domain name has been cancelled.

Valeri Penev, PETOŠEVIC, Sofia