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The UDRP: Is It Un-Fair.com?

typecast writes "A study of more than 3,000 UDRP decisions by a Canadian law prof. suggests that ICANN's domain-dispute resolution process may be even more unfair than Slashdot types already believe. This article says the study confirms organizations such as WIPO and the National Arbitration Forum decide most cases in favor of trademark holders. But it also says it's clear that individual arbitrators with strong "anti-cybersquatting" records are the ones most likely to be handed UDRP cases. A copy of the study and a minimal database of UDRP-panelist stats can be found at Geist's own UDRPInfo Web site."

33 of 119 comments (clear)

  1. Devil's Advocat by baronben · · Score: 2, Interesting

    Not to start a flame war here, but since the internet is global, and since laws aren't, some sort of Internatinal orginization with binding arbatration powers is needed to make sure that some one in Brazil or Burni can't get a copywrited name, or some one using the Colombia suffix .CO can't get Cnn.co or Slashdot.co (NEVER!).

    Ben Spigel
    Sic Transit Gloria

    1. Re:Devil's Advocat by kurowski · · Score: 2, Insightful

      I don't get your argument. It seems that since the Internet is global, and laws aren't, then there shouldn't be an international organization with this sort of power, since the copyright laws that are being enforced aren't globally applicable. No?

    2. Re:Devil's Advocat by mpe · · Score: 2

      Not to start a flame war here, but since the internet is global

      Whilst the Internet may be the vast majority of companies doing business on the internet (especially if they are shipping physical products) do not trade globally.

      some sort of Internatinal orginization with binding arbatration powers is needed to make sure that some one in Brazil or Burni can't get a copywrited name, or some one using the Colombia suffix .CO can't get Cnn.co or Slashdot.co

      What is done with .co is a matter for the Colombian government.
      As for the CNN example they are quite happy to broadcast an Atlanta telephone number on screen, even well outside the USA, so maybe they should have something like cnn.atl.ge.us

    3. Re:Devil's Advocat by mpe · · Score: 2

      By your arguement, if a large company has a specific telephone number in one area code, they should have that same number in every area code without paying extra.

      Or even the same set of numbers under every country code (including +800 and +87x).

      The whole point of having different domain names is so that joe blow's auto parts could have joesauto.com, but joe smith's automatic internet provider can have joesauto.net. I know the given example is kind of lame, but the point is simple.

      Or even joesauto.la.ca.us and joesauto.ny.ny.us but that's just too simple...

    4. Re:Devil's Advocat by mpe · · Score: 2

      On the other hand, I think the problem is not so much with recognized brand names, but when someone registers a domain with their last name that happens to be the name of a big corporation. There have been more than a few instances where the big company came in and stomped the guy because they had money and he didn't. He wasn't cybersquatting in this case....unless you consider posting your song lyrics and pictures of your kids cybersaquatting.

      Actually the fault here is having too many .misc TLD domains. If there were proper rules, e.g. you don't get a .com unless you are a commercial entity trading in at least two countries and that whatever you want as a second level domain is actually derived from your company name or a recognised trading name. There would be no way someone with a personal website could have got a .com name in the first place.

    5. Re:Devil's Advocat by taniwha · · Score: 2
      but it's quite posssible that person X holds the trademark for a product in Brazil, someone else does in Brunei and a third in Columbia - of course any of them should be able to claim that particular name and it should be first come first served, it shouldn't be "the biggest company wins" - the same name can also be trademarked for different products in the US for products in diverse industries. For example a hypothetical "Ford Food Industries" could sell stuff under the "Ford" label and ought to be able to claim the name if they register it first.



      Another real-world example - a trademarked software product I once worked on turned out to be type of adult diaper in Italy and a line of modular shelving in the UK - we didn't own the name any more than they did



      You might find it usefull to check out the USPTO where they say To determine whether there is a conflict between two marks, the PTO determines whether there would be likelihood of confusion, that is, whether relevant consumers would be likely to associate the goods or services of one party with those of the other party as a result of the use of the marks at issue by both parties. The principal factors to be considered in reaching this decision are the similarity of the marks and the commercial relationship between the goods and services identified by the marks. To find a conflict, the marks need not be identical, and the goods and services do not have to be the same.

  2. Logic bombs away! by mystery_bowler · · Score: 4, Interesting

    The reason trademark holders win the vast majority of these domain name disputes couldn't possibly be because they deserve the name and the current holder has no reason other than cybersquatting to have it...could it?

    I mean, hey, I know the every day average guy has no chance in hell up against a corporation when undergoing fast-track arbitration. And maybe I'm just not clued in to the majority of these cases, but if someone made a statement to me to the effect of "A guy named Joe Toledo bought the domain ford.com and now the car manufacturer wants it, who do you think should have it?" I'd be inclined to side with Ford. Because Ford has a trademark, much like an integral part of their corporate entity. Now, if you told me a guy named "Joe Ford" bought it, I'd say you've got a case. I'd be willing to bet that the vast majority of these defendants in domain name disputes don't have a reason other than profiteering to have these domain names and that's why they lose.

    --

    My sigs always suck.
    1. Re:Logic bombs away! by dschuetz · · Score: 5, Insightful

      "A guy named Joe Toledo bought the domain ford.com and now the car manufacturer wants it, who do you think should have it?" I'd be inclined to side with Ford. Because Ford has a trademark....

      Yeah, so?

      A trademark, if I recall correctly, is only supposed to protect a certain range of products within that product's "sphere." So it's perfectly legal to sell a pen called "Ford Pens", and you're not trampling on any trademark.

      Plus, why do you even need to have a use for a name? Domain names are commodities. If you bought it first, and Ford missed the boat, well, tough luck for them. You've got it, they don't.

      If you're deliberately deceiving pepole, trying to *look* like some other site, okay, that's a problem with look-and-feel, trade-dress sort of laws. But if I wanted to put my family website at, say, OfficeXP.com, then dammit, I should be allowed to do that.

      My biggest worry is that the same .com crap is going to happen with .info, .biz, and all the other new TLDs. We saw EXACTLY this same thing happen when they added new toll-free prefixes in the US -- American Express tried suing to guarantee that they got 888-the-card, to match their 800-the-card. And so forth.

      Dammit, when will people get it through their heads that you cannot own domain names for EVERY variant on EVERY product or trademark you own? It's just not possible, and it's just not fair.

      Grr.

      Sorry, this is something that's been bugging me for a while. Gotta cut back on the caffeine...

    2. Re:Logic bombs away! by Zalgon+26+McGee · · Score: 2
      How dare you advocate the free market? Don't you know that corporations have the right to profit regardless of their products?

      Next thing you know he'll be advocating the rule of law...

      --

      ---

      Book(n): Utensil used to pass time while waiting for the TV repairman

    3. Re:Logic bombs away! by mpe · · Score: 2

      My biggest worry is that the same .com crap is going to happen with .info, .biz, and all the other new TLDs.

      The basic problem here is misuse of domain names into www.whatever.com.

      We saw EXACTLY this same thing happen when they added new toll-free prefixes in the US -- American Express tried suing to guarantee that they got 888-the-card, to match their 800-the-card.

      The difference is that telephone numbers cannot generally be "extended" (except in Germany).
      DNS names are more like postal addresses. In that you can always add more "buildings", "offices", "departments", etc on to the beginning.

    4. Re:Logic bombs away! by The+G · · Score: 2

      What on earth reason do you have to believe that the right way to get info on foo is to point your browser at foo.com? DNS ain't a keyword system.

      You don't go to amazon.com to get info on amazons. You don't go to imdb.com because you like those four letters. DNS is a mnemonic system, not a frickin' search engine.
      --G

    5. Re:Logic bombs away! by Masem · · Score: 2
      Buying 'mcdonalds.com' knowing well-in-full of the existence of McDonald's is certainly something questionable.


      But the real-estate question is more akin to something along the lines of this: Say you buy the name "bigturkey.com", and squat it. Sometime later, McDonald's introduces the Big Turkey sandwich into their menu, and because they want to get web site traffic, they try to register 'bigturkey.com', and find it taken.
      Presuming that you had no inside knowledge of the direction that McDonald's was taking, who's got the right to the name? By real-estate standards, it's you, but WIPO would most likely rule in McD's favor. This leads to retroactive trademarks, which IMO can open up a whole host of new lawsuits.


      To the best of my knowlegde, there's yet to be a case as this: nearly all the domain name squabbles involve the fact that there was pre-existing trademarks before the domain was registered. But this case would be the type that would definitely tell us how imbalanced that the WIPO is (Beyond what we know already, of course.)

      --
      "Pinky, you've left the lens cap of your mind on again." - P&TB
      "I can see my house from here!" - ST:
  3. Cybersquatters are scum... by fmaxwell · · Score: 5, Interesting
    Every desirable name (and even most typos) have been gobbled up by a bunch of greedy, talentless parasites who are hoping to strike it rich by cyberextorting from companies. I'm happy to see them lose these battles. Sure, there are probably some cases being decided the wrong way, but the good being done outweighs the bad.


    Sorry if this opinion offends, but when I really resent jerks paying $35/year to register a domain and then extorting $200K out of some company. I'm tired of finding every domain name that I might want in the hands of some cybersquatter who has no intention of ever using or developing it. It reminds me of someone who buys up all of the plywood before a hurricane and sells it for $100/sheet to his desperate neighbors.

    1. Re:Cybersquatters are scum... by fmaxwell · · Score: 2
      So do you also look down upon real estate speculation, where someone buys land out in the middle of nowhere, does nothing with it for several years until the land is worth something?


      Yes, I do. I respect people who take something and make it valuable, not people that try to get rich without contributing anything to society or the economy.


      Yeah, sometimes people do get screwed to some degree when someone buys a domain name. But to compare it to the people who extort money after a hurricane blows through is a bit excessive.


      How? What's your neighbor's house worth? Now how much damage is done to a business that can't have a recognizable domain? How much would it cost Compaq if some cybersquatter had www.compaq.com, for example?

    2. Re:Cybersquatters are scum... by fmaxwell · · Score: 2
      Thats a good idea, wish i lived on a coast, alas there aren't many hurricanes on the great lakes.


      But, unlike cybersquatting, it's illegal.

    3. Re:Cybersquatters are scum... by fmaxwell · · Score: 2
      Somebody scraps up a domain name which some corporation later wants. Result: The corporation has to get a different domain name.


      So, in my hypothetical example, the buying public types www.compaq.com, find's a "this domain for sale" sign, and then types www.gateway.com or www.dell.com. Compaq would lose far more money than Bob's vacation home in Florida was ever worth. If it's a dot-com rather than Compaq, being stuck with a crappy domain name could cost them their business, their investors would lose their investments, and their employees would lose their jobs.


      By the way, plywood protects windows, not people's lives. People who board up their houses normally have enough sense to evacuate them before the storm hits.

    4. Re:Cybersquatters are scum... by fmaxwell · · Score: 2
      These companies constantly bully, threaten, and devastate individuals and smaller businesses by means of legal technicalities, unethical and immoral behavior, and outright lies. Anything that CAN be done to undermine any one standing in the way of profit IS done by the corporate entities. And yes, I include mass murder, or have you already forgotten Bohpal?


      So you are saying that this justifies cybersquatting -- that because some firms behave unthically, that we should hold no one accountable for their actions?


      New rule: No individual or company can own more than 10 domains. It's absurd that some cybersquatters have each grabbed thousands of domains that they neither want nor plan to develop.

  4. 51st state? by Xandu · · Score: 5, Funny

    By Steven Bonisteel, Newsbytes
    OTTAWA, ONTARIO, CANADA, U.S.A.,
    20 Aug 2001, 8:12 AM CST


    When did Canada become the 51st state? News to me!

    --


    --Xandu
    1. Re:51st state? by kypper · · Score: 2

      Damn! My g/f was needing a student visa, but... Now that Canada's a state, we're all good!

    2. Re:51st state? by brunes69 · · Score: 2

      It may be news to you, but, having been a Canadian my whole life, it isn't news to me.

  5. Arbitrator should be randomly assigned by sourcehunter · · Score: 2
    The UDRP should include provisions for a RANDOM dispute arbitrator to be assigned perhaps at the domain holder's request.

    That way, Joe Corporation can't nuke JoeCoSucks.com as easily by going to one of the "Trademark Friendly" arbitrators.

    --

    quis custodiet ipsos custodes - Juvenal
  6. Squatting... by JohnnyKnoxville · · Score: 2

    It seems silly. If someone cybersquats on a domain name that would obviously be used by a mega corp, they will get taken down in court. If someone squats on a domain where there is no corporation to fight them, ie: jesus.com, they can make millions. It is almost a double standard.

  7. Mod this up by kypper · · Score: 3, Funny
    It reminds me of someone who buys up all of the plywood before a hurricane and sells it for $100/sheet to his desperate neighbors.


    A very apt analogy.

  8. Jucius Maximus by Jucius+Maximus · · Score: 2, Interesting

    Perhaps this could explain the sex education on homeschool oriented domains? I'm not sure whether it's right to love or hate ICANN for things like this...

  9. Is anyone surprised? by webmaven · · Score: 3, Insightful

    I find it incredible that anyone is surprised that when complainants are give the choice of arbitrator, that they would choose arbitrators who have decided for the complainant more often.

    Thus, there is a built-in incentive for arbitrators to decide for complainants rather than respondents.

    Similarly, the US correctional system (which is run by for-profit corporations), has an incentive to make the situation worse rather than better, with the unfortunate result of these corporations funneling money to 'tough on crime' political candidates, and creating the 'war on some drugs' to incarcerate the perpetrators of victimless crimes.

    These are examples of elementary positive feedback loops, and no-one should be surprised at the results.

    --
    The real Webmaven is user ID 27463. I don't rate an imposter, because my ID is such a lame-ass high number.
  10. You're missing letters at the end by donutello · · Score: 2

    Advocat --> AdvocatE
    cnn.co --> cnn.coM

    Thank you.

    --
    Mmmm.. Donuts
  11. Shared Jurisdiction or other alternatives by hillct · · Score: 2

    So, how should it work. Should there be an established jurisdiction in which trademark disputes related to domain names should be examined? Since when did trademarks become relevent to namespacs independant of usage? The one universally accepted principle of trademark law is that they cover a namespace with respect to a particular usage meaning the name McDonalds in conjunction with resteraunts and McDonalds in conjunction with a farm would never come into conflict and whoever registered McDonalds.com for his particular purpose, so long as that purpose was not to trade on the percieved value of the name in it's alternate context, would be perfectly within his rights to do so. As I said, this principle is common to all implementation of copyright law, so how is this even an issue?

    The problem isn't weather or not there's an international organization for settling trademark disputes, it who defines the venue for the dispute settlement, and who is actually arbitrating. The argument is that the arbitration that is being done isn't fair, but this is only because the person doing the research doesn't feel that it's fair, since 'fair' is an entirely subjective thing in this case.

    --CTH

    --

    --Got Lists? | Top 95 Star Wars Line
  12. Yep, your logic bombs all right by Hizonner · · Score: 2
    Undoubtedly due to your following the hallowed Slashdot tradition of not doing even the most cursory reading of the material before spewing.
    The reason trademark holders win the vast majority of these domain name disputes couldn't possibly be because they deserve the name and the current holder has no reason other than cybersquatting to have it...could it?
    I suppose it could.

    What does that have to do with this guy's study, which is not about the absolute percentage of these cases resolved in favor of the complainants, but about some mighty suspicious looking differences in those percentages depending on which arbitrator is hearing the case and which of the alternate procedures are followed?

    His argument is basically that, out of all the arbitrators legitimately accredited by this process, some seem much more likely to rule in favor of complainants than others, and oddly enough it looks as though somebody is using the process to steer cases to those arbitrators. That's procedural bias even if these "hangin' arbitrators" are in the right. Not that I think they probably are.

  13. Inept Judges by chad_r · · Score: 2, Informative

    From the decisions I've read, a lot depends on whether the chosen judge Gets It. Here's an example that represents the worst case of a clueless arbiter. It was ruled by Mr. Michael Ophir that bodacious-tatas.com should be transfered to the Tata Group in India.

    Here's the rationale, using the standard criteria:
    (i) your domain is identical or confusingly similar to a trademark or service mark in which the complainant has rights; and
    (ii) you have no rights or legitimate interests in respect to the domain name; and
    (iii) your domain name has been registered and is being used in bad faith.

    i) TATA exists as a string within the domain name, thus, confusingly similar
    ii) If (i), then the TATA Group has a legitimate interest in the domain, therefore the respondent does not
    iii) If (ii), then it is used in bad faith. Plus, it's porn!

    Judicial bootstrapping! Most judgments aren't that bad, but there are more examples like that (absolutporno.com, et. al.). It seems that porn sites are treated as a lower class.

  14. Re:The whole internet is unfair! by mpe · · Score: 2

    What if my last name were McDonald's and I had a Family owned business that had been around for decades. I wouldn't be able to get a website with my business name, because some stupid restaurant got the domain name first

    If you were in Scotland you probably could. Lord McDonald has been known to take a dim view of that company.

  15. Daming points and peer review. by AtariDatacenter · · Score: 2

    Wow. This is good stuff. Read their PDF report.

    A very STRONG tip: if you are the respondant in a domain dispute, the other party gets to select which agency handles the dispute. Your only chance in counter-rigging the decision ahead of time is to pay (at a 50% discount) for a 3 member panel to hear the case. If they already paid for a 3 member panel, they've done you a service.

    As a bonus, with a three party panel, YOU get to select one of the members! Further, the numbers show a STRONG statistical coorelation between 3 member panels (where the defendant makes an argument) and 1 member panels (where the defendant makes an argument) that are less leaned towards the party bringing the complaint.

    Note of interest: when the party bringing the complaint paid for a 3 person panel, the three person panel also ruled in favor of the complaintant less often than on a 1 person panel.

    Also interesting were the numbers at one of the arbitration agencies that (not the words of the researchers) pointed out a number of 'hanging judges'. And guess what? These hanging judges were assigned a disproportionate amount of the caseload.

    What does this all say? Peer review. You're less likely to have a rogue judge if his actions are reviewed by other judges. And yes, they have pointed out rouge judges which have completely ignored the rules of arbitration.

    Peer review is good for code, and it is good for arbitration.

  16. tobacco.com: you overreacted by Hydrophobe · · Score: 2

    You overreacted, spending the $3500.

    Should have handled this UDRP defense yourself. Even the most out-to-lunch single-person panel would never let this one get through. If the unthinkable happens, you can still go ahead and stick a lawyer up their ass and keep your domain, but it won't come to that.

    Scandalous about NAF keeping your money, though.

    PS, Canadian corporate info is available online , but I was unable to find a Tobacco.com, Inc. Is it possible they filed a trademark application on behalf of a non-existent entity? By the way, 401 Queen's Quay West is Harbour Terrace (luxury condominiums), so they may have assets worth going after. Canada has an advanced legal system, after all.

    PPS, Your domain tobacco.com may not be worth as much as you think... e-commerce or even advertising is a complete non-starter in today's climate. Suggestion: put up tobacco lawsuit resource info (class action lawsuits, ambulance-chaser lawyer ads, etc), and the tobacco companies might find it cost-effective to pay you a million to take the domain off your hands (after all, literally hundreds of billions of dollars are at stake).

  17. Re:Pre-Trademark domains? by J'raxis · · Score: 2

    Um, no. www.net has a TLD of .net like millions of sites the name of the site itself is www. (Incidentally, www.www.net is the same site; its easier to parse that one semantically.)