ISP accused of cyber-squatting by start-up reseller

An Internet domain name dispute has erupted with the head of a start-up UK reseller accusing his former employer of cyber-squatting.

Jason Edge founded Cisco-supplier Phoebus Solutions Limited earlier this year, and set up his company Web site at www.phoebus-solutions.com. However, his former employer, Derbyshire-based Peritech Systems, has registered the www.phoebus-solutions.co.uk.address, and is using it to re-route traffic to its own site.

Edge claims that's cyber-squatting, but the situation is complicated by an ongoing legal dispute between the two parties. The case centres on claims from Edge that Peritech withheld a commission payment of around £15,000 when he left the company.

The dispute has yet to reach a conclusion, but Peritech's sales director Simon Garrett, claims it was Edge's behaviour outside the courtroom that prompted the company's decision to take the dispute online.

Garret claims Edge has approached potential customers pretending to be an authorised Sun reseller - a status Peritech has, but Phoebus does not.

Garrett said: "I'm absolutely aware of what's going on, but if someone is given sales leads, leaves, and then tries to steal all your customers, you do anything you can to protect your business."

Besides being a value-added reseller for Hewlett-Packard, Microsoft and Sun, Peritech is also an Internet service provider (ISP). Edge claims that makes the company's position all the more surprising. "I can cope with the petty nature of this, but the surprising thing is that Peritech is itself an ISP, and a member of the ISPC [Internet Service Providers Consortium], members of which abide by a code of conduct."

Although the ISPC isn't a trade organisation - it was set up by 19 smaller ISPs looking to club together to buy capacity and form a support network - its members have traditionally condemned cyber-squatting. The ISPC was not available to comment, but Nick Lockett, solicitor at law firm Sidley and Austin, said: "I don't think there's much doubt that Phoebus has a case."

Although Phoebus isn't a registered trademark, Lockett added: "If they've built up a reputation, even within a certain class of clients, they may be able to protect it."

So-called 'passing off' is against the law, and the landmark 'One In A Million' case, where a number of major brand names were registered by Web savvy opportunists, has established a precedent against individuals or companies who masquerade under brand name URLs.