ClickZ has a write up named Can Subdomains Violate a Trademark? In there report, they show how the Jews for Jesus sued the people running jewsforjesus.blogspot.com. The case was ultimately settled out of court and no ruling has been made. But this raises interesting questions. What if we here at Search Engine Watch decided to categorize all Google related topics under the subdomain google.blog.searchenginewatch.com. Is that a trademark violation? I can see how a public hosted domain, like blogspot.com subdomains, might be viewed as more of an infringement of trademark then would be a subdomain hosted on searchenginewatch.com - but even the case above with Jews for Jesus seems a bit far reaching to me.
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