California based Web Hosting Wholesale announced today that a Costco Wholesale Corp (ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œCostcoÃƒÂ¢Ã¢â€šÂ¬Ã‚Â) legal representative has been trying to force WebHostingWholesale.com, who provides complete business web hosting for $1, to give-up their domain name of costcohosting.com.
Costco first contacted WebHostingWholesale.com in March, with a somewhat anonymous email from CostcoÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s legal representative, and demanded termination on the usage of CostCoHosting.com.
Costco is known for their warehouse stores, and quantity purchases of tangible goods, may it be discounted or not, but ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œeveryone knows that Costco Wholesale does not do anything with Internet related services, and they especially have nothing to do with web hosting related servicesÃƒÂ¢Ã¢â€šÂ¬Ã‚Â, says Web Hosting Wholesale VP of Sales. Well, that was until Costco tried to bully WebHostingWholesale.com for their domain name of CostCoHosting.com. WebHostingWholesale.com is most known for their huge discounts for complete business web site hosting for $1 through the CostCoHosting.com domain, and many other domain names. Costco initially contacted WebHostingWholesale.com in March and April and tried to scare Web Hosting Wholesale by stating how large Costco was with ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œ43 million worldwide cardholdersÃƒÂ¢Ã¢â€šÂ¬Ã‚Â, and an ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œannual sales of $41 billion dollarsÃƒÂ¢Ã¢â€šÂ¬Ã‚Â, and how they had ultimate and universal rights to any use of the word “costco”.
Web Hosting Wholesale found Costco’s initial communication to be rude, bullish, anonymous, arrogant, and demanding. WebHostingWholesale.com informed Costco that the ICANN rules, and the Federal Trade and Patent laws protected WebHostingWholesale.com. WebHostingWholesale.com informed Costco that ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œCOSTCOHOSTING.COM is not the same as CostcoÃƒÂ¢Ã¢â€šÂ¬Ã‚Â, and ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œthey have valid reasons for using and having rights to that domain name and they are legitimate and legalÃƒÂ¢Ã¢â€šÂ¬Ã‚Â. In addition Costco was not in the same industry and did not offer any services related to or offered by WebHostingWholesale.com, which at the moment CostCoHosting.com was pointing to due to a new design project. Web Hosting Wholesale welcomed Costco to either become an investor or to establish business relations and provide web hosting services to their cardholders. Especially since Costco did not have any such services or anything remotely close to any such services. ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œWe think Costco Wholesale got scared that they might not have rights to the name ÃƒÂ¢Ã¢â€šÂ¬Ã‹Å“costcoÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢ in any of the Web Hosting, or Internet, or a dozen other categories or industriesÃƒÂ¢Ã¢â€šÂ¬Ã‚Â, says Web Hosting Wholesale VP of Sales. Instead of Costco establishing a win-win business relationship with Web Hosting Wholesale, Costco got quite for a few months and then, just recently, offered web hosting services through another company to indicate that they too were providing web hosting services.
CostcoÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s new web hosting services for their Executive Members is $14.95 and $17.95 plus other service fees. In contrast to CostcoÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s new offer, WebHostingWholesale.com lowest price package is $1 a month cost for complete web hosting. Plus WebHostingWholesale.com has a Best Price Guarantee that they can use to beat other providers prices. ÃƒÂ¢Ã¢â€šÂ¬Ã‚ÂWe think Costco members will significantly lose on their purchase from Costco when compared to WebHostingWholesale.com or CostCoHosting.com packages and pricesÃƒÂ¢Ã¢â€šÂ¬Ã‚Â, says Web Hosting Wholesale VP of Sales.
WebHostingWholesale.com says, eventually, Costco will have to either do friendly business with WebHostingWholesale.com or offer to purchase their asset of CostCoHosting.com, and that is assuming Web Hosting Wholesale is willing to sell that valuable asset. As of today, Costco still has not been able to force the domain of CostCoHosting.com away from the small local company of Santa Clara, California, and Web Hosting Wholesale thinks that Costco may in fact be in violation of trademark regulations or some fair competition law by adding the service of hosting to their site. Costco continues to try and take away the domain name of CostCoHosting.com from WebHostingWholesale.com, and Web Hosting Wholesale invites their local community to provide legal assistance on this matter.