STAND. COM. REP. NO.931

Honolulu, Hawaii

, 2001

RE: S.B. No. 1276

S.D. 1

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs, to which was referred S.B. No. 1276, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CYBERSQUATTING,"

beg leave to report as follows:

The purpose of this bill is to protect personal names and trademarks from cybersquatting. Cybersquatting is the registration of a domain name on the Internet, where the name registered is identical or confusingly similar to a person's name or a trademark.

Testimony in support of this bill was submitted by the Tony Group, Hawaii Automobile Dealers' Association, and Lieutenant Governor Mazie K. Hirono, testifying as a private citizen. Verizon provided testimony in support of the intent of the bill and suggesting amendments. The International Trademark Association and two concerned individuals commented on the measure.

Your Committees heard testimony that the names of many persons and companies are unavailable for use as domain names on the Internet because they have been registered by unrelated third parties. In 1999, Congress passed the AntiCybersquatting Consumer Protection Act, which sought to address this problem.

Unfortunately, federal law provides inadequate protection for personal names. To claim protection under the federal law, a person must show that the cybersquatter intended to profit from the cybersquatting activity. However, a cybersquatter could cause harm without intending to profit by placing a person's name on the Internet, along with information that could tarnish or disparage the person.

Your Committees also heard concerns that the bill, as received, would conflict with trademark protections also included under federal law, which were thought to provide adequate, nationally uniform protection for trademark owners.

Upon further consideration, your Committees have amended this measure by removing its trademark provisions, and making nonsubstantive, technical amendments to its remaining personal name protections. As amended, this bill is substantially similar to H.B. No. 1221, H.D. 2, with the exception that it:

(1) Creates a new chapter in the Hawaii Revised Statutes, as opposed to a new part in chapter 481B, Unfair and Deceptive Practices; and

(2) Defines "cybersquatting."

As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1276, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1276, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs,

____________________________

ERIC G. HAMAKAWA, Chair

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KENNETH T. HIRAKI, Chair