PHI 314 Week 4 Case Study
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Wilmington University *
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314
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Philosophy
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Dec 6, 2023
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Cybersquatting and extortion
Wilmington University
PHI 314 Ethics for Computer Professionals
Cybersquatting and extortion
The practice of cybersquatting is also referred to as domain squatting, involves
registering, trafficking in or utilizing an internet domain name with the intent to profit from the
goodwill of a trademark owned by another individual or entity, displaying bad faith. The
Anticybersquatting Consumer Protection Act (ACPA) was established in 1999. As stated in this
legislation, “The Anticybersquatting Consumer Protection Act (ACPA) is designed to “protect
consumers and promote electronic commerce by amending certain trademark infringement,
dilution, and counterfeiting laws," creating a new cause of action for trademark owners against
cybersquatters as well as providing protection against the unauthorized registration of personal
names as domain names”.
Teamsters Local 251 is a union in Providence, Rhode Island which represents 6400
members. These members range from bus drivers, groundskeepers, custodians and UPS drivers.
Nick Williams, a now former member of this union, was fired from the position he held as a
business agent. Mr. Williams was accused by Union 251 of violating the ACPA when he
registered a website named “teamsterslocal251.com”, which is nearly identical to the union’s
website address of “teamsterslocal251.org”.
According to the union’s complaint, after Mr. Williams was fired, he created the website
the following day and posted criticisms of union leadership on his fake website. He went onto
denigrating his former union officers for sexual harassment, lied about sexual conquests and
even bragged about alleged cocaine used among union leadership. Another posting on the
website featured an excerpt of a 2007 DUI police report that involved a former co-worker of Mr.
Williams. These disparaging remarks were not the only complaints by the union.
The clear violations of the ACPA were when Mr. Williams admitted to his attorney,
Lawrence L. Goldberg, that Mr. Williams intended to purchase the website and to exchange it
back to Teamsters Local 251 for three years of pay and benefits. This was estimated to be worth
around $500,000. This act was seen as extortion by the Teamsters Local 251 lawyer, Elizabeth
A. Wiens. Mrs. Wiens argues, “He purchased it with the sole purpose to sell it back to the
union”. Mr. Williams argued that his intentions were to negotiate a severance for himself, and he
was simply exercising his First Amendment rights.
Mr. Williams furthers his argument that he had a disclaimer on the website that it is not
affiliated with Teamsters Local 251 and the website was not for sale. This apparent excuse was
not enough to help Mr. Williams.
On Monday, May 1st, 2023, Federal U.S. District Court Judge Mary S. McElroy granted
a preliminary injunction on Mr. Williams website. Mr. Goldberg tried to argue that the Teamsters
had no registered federal trademark along with Mr. Williams disclaimer, would dismiss any
confusion between Mr. Williams website and the actual Teamsters website. Judge McElroy did
not buy that argument. Even though having a registered trademark is a requirement of a
cybersquatting claim, ACPA clearly states registering an internet domain name with the intent to
profit is a violation. Judge McElroy asked Mr. Goldberg how Mr. Williams actions were not
cybersquatting as defined by the law leading eventually to Mr. Goldberg conceded that “It would
appear to be cybersquatting.”
This case, in my opinion, is a textbook case of cybersquatting. Mr. Williams maliciously
intended profit from his former employers while belittling them. ACPA does not prevent
websites made with the intention of using the First Amendment. So, if Mr. Williams created the
website to only write disparaging remarks without trying to extort the Teamsters, he may have
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been found innocent. The saga does not end yet for Mr. Williams. He intends to file a wrongful
termination suit with the Department of Labor over allegations that the union violated fair
representation by discharging him without due process.
References:
Mulvaney, K. (2023, May 3). Cyber-squatting and extortion claims plague former union
employee after building fake website. The Providence Journal.
https://www.providencejournal.com/story/news/politics/courts/2023/05/02/judge-rules-for-
teamsters-local-251-in-cybersquatting-case/70171239007/
The anticybersquatting consumer protection act. Senate report 106-140 - the anticybersquatting
consumer protection act. (n.d.).
https://www.govinfo.gov/content/pkg/CRPT-
106srpt140/html/CRPT-106srpt140.htm
teamsterslocal251. (2023, April 26). Teamsters local 251. Teamsters Local 251.
https://teamsterslocal251.org/