Reference no: EM132085052

Initial Text:

Dana and Ronnie operate a Web-based business, TraderRon.com, an Internet swap site that uses a Dutch auction system pioneered by Priceline.com.

TraderRon.com allows customers to make offers to other customers to swap such items as their unused frequent flyer miles for other customers' unwanted merchandise, including DVDs, music CDs, used books, and any other merchandise customers might want to trade. No sales involving payment of money are made on the site.

Some of the merchandise that has been offered on the site and swapped consists of bootleg or pirated merchandise, as well as designer knockoffs. All of TraderRon.com's income derives from advertising. TraderRon's website and advertising use a black and grey symbol to represent its swapping service.

It has used this symbol consistently and registered it with the U.S. Patent and Trademark Office. The symbol is very similar to the Nike swoosh symbol, except it fades from black to grey from left to right. TraderRon.com uses a multimedia presentation to explain its operation to users. The multimedia presentation was created by a friend of Dana's as his senior portfolio project at school, where he was majoring in website design and multimedia.

Dana paid him with a free trip to the Caribbean, which she had won in a contest. No copyright was registered in connection with the multimedia presentation. TraderRon.com sends a weekly e-mail update to customers who have registered on the site. The e-mail is sent via an e-mail address Ronnie established at Yahoo.com. TraderRon.com's customers are located throughout the U.S. and some are overseas.

What intellectual property and Internet law issues are raised by TraderRon.com's business model?

What sort of liability is the business risking? What legal implications could arise from using the Yahoo.com e-mail account for swap.com's mass e-mailings?