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NNDKP_Domain names on the internet. Alternative dispute resolution.
1. DOMAIN NAMES ON THE INTERNET –
ALTERNATIVE DISPUTE RESOLUTION
Delia Belciu
Senior Associate
Nestor Nestor Diculescu Kingston Petersen
Conference “Intellectual Property Law and Practice Constancy in Innovation”
September 5, 2012, Bucharest
09/06/12 1
2. Domain name – general aspects
Domain name = sequence of alphanumeric characters allowing the
identifycation of an address on the Internet (e.g. www.ms.gov.ro);
Suffix at the far right of the domain name (in this example,. “.ro”) is called
top-level domain - TLD and can be:
i. generic top-level domain - gTLD - indicates the nature of the activities
carried out by its holder and is composed of three or more characters
(eg. com, .org, .travel, .net, etc.);
ii. country code top-level domain - ccTLD - indicates the geographical
location and is composed of two characters (eg. de, .fr, .it, etc.).
the complete list of top-level domains level can be accessed at
http://www.iana.org/domains/root/db/#
3. Trends
ICANN (Internet Corporation for Assigned Names and Numbers) was established in
1998 with the purpose of ensuring the unity and stability at an international level.
In 2005, the GNSO (Generic Names Supporting Organization belonging to ICANN)
initiated a process of introducing new generic domains.
During the period 12 January to 30 May 2012, any interested person could submit to
ICANN one or more requests for generic domains. Examples of requests: .TOYOTA and
.LEXUS (applicant: Toyota Motor Corporation), .MICROSOFT (applicant: Microsoft
Corporation);
Some (potential) domains were more requested - nine requests were made for .BLOG
and also nine for .BOOK.
List of applications can be accessed at:
http://newgtlds.icann.org/en/program-status/application-results/strings-1200utc-13jun12-en
4. Domain name protection
Currently there are over 24o ccTLDs, each administered by a national body
empowered for this purpose
The domain name .ro is administered by The National Institute for Research
& Development in Informatics, which manages the ROTLD register (
www.rotld.ro).
The protection of the domain names is performed by registration with the
body/organization authorized for this purpose (registrar). The registration of
a domain name does not grant to the holder an ownership right over the
denomination in question or any exclusive right similar to an intellectual
property one, but just a simple right of use.
The registration of a .ro domain name is performed online and is valid for an
unlimited period of time (does not require renewal). The costs to register a
.ro domain name is of 51,26 USD + VAT (currently 24%) which is paid at
registration. Currently, there is no annual maintenance fee that has to be
paid by the holder.
5. Conflicts domain name v. trademark
The economic potential of the domain names has given rise to
abusive registrations of domain names that corresponded to
notorious / renowned trademarks belonging to third parties, aspect
that led to several conflicts.
This phenomenon is known as "cybersquatting" or "domain squatting"
and consists in registering, trafficking and using in bad faith, of a
domain name with the intention of taking unfair advantage of the
clients associated to a certain trademark belonging to a third party or
by reselling the domain name at a high price.
6. Conflict resolution between domain names vs. trademarks
The conflict between domain name vs. trademark may be settled, among others:
By the Approved Dispute-Resolution Service Providers, according to UDRP:
• Uniform Domain Name Dispute Resolution Policy (UDRP - http://
www.icann.org/en/udrp/udrp-policy-24oct99.htm) which was approved
by ICANN (Internet Corporation for Assigned Names and Numbers) on
August 26, 1999;
• As a rule, the registers that agreed upon UDRP policy, have to
incorporate it by reference within the registration agreement of that
domain name.
By the competent courts of law, according to the applicable law.
7. UDRP
The ICANN Approved Dispute-Resolution Service Providers, currently, are:
Asian Domain Name Dispute Resolution Centre;
National Arbitration Forum;
World Intellectual Property Organization (WIPO);
The Czech Arbitration Court - Arbitration Center for Internet Disputes.
The Service Providers apply the Uniform Domain Name Dispute Resolution
Policy (http://www.icann.org/en/dndr/udrp/uniform-rules.htm), as well as
their own supplimentary rules.
8. Alternative Dispute Resolution Courts of law
Shorter settling time; Longer settling time;
Lower costs; Higher costs;
Eg: WIPO – 1 panelist – 1500$
Compensation may be granted;
No compensation is granted;
Final and binding decision can not
The party dissatisfied with the be appealed.
decision may challenge it before the
competent courts.
9. UDRP
Cumulative conditions for accepting a complaint:
1. The domain name is identical or confusingly similar to a trademark in which the
complainant has rights;
2. The respondent has no rights or legitimate interests in respect of the domain
name
3. The domain name has been registered and is being used in bad faith
These conditions are detailed in the Policy. The burden of proof belongs to the
complainant.
Available remedies:
1. The cancellation of the domain name;
2. The transfer of the domain name to the complainant.
No compensation is granted!
10. Typosquatting
Is a version of cybersquatting consisting in
the registration of a domain name which is different
from a very known domain name only by a typing “error”.
Examples:
• www.ho0tmail.com" and "hot5mail.com vs. hotmail.com;
• www.dosney.com vs. www.disney.com.
11. Example:
An interesting example is that of a teenager from
Canada named Mike Rowe who registered
MikeRoweSoft.com domain name, used it to promote
its web design services. Microsoft offered $ 10 for the
domain name, but Mike Rowe has asked $ 10,000.
Finally, the parties settled and Microsoft helped Mike
Rowe to move his small business to another website.
www.MikeRoweSoft.com website currently redirects
users to www.microsoft.com.
12. Typosquatting in WIPO case law
The constant WIPO practice: A domain name that contains a common or obvious
misspell of a trademark will normally be considered very similar to the trademark, as
long as the misspelled trademark is the dominant or main element of the domain
name.
Relevant case-law:
• fuijifilm.com - Fuji Photo Film U.S.A., Inc. v. LaPorte Holdings (http://
www.wipo.int/amc/en/domains/decisions/html/2004/d2004-0971.html );
• humanna.com - Humana Inc. v. Cayman Trademark Trust (http://www.wipo.int
/amc/en/domains/decisions/html/2006/d2006-0073.html)
• luisvuitton.com - Louis Vuitton Malletier v. Net-Promotion, Inc.
(http://www.wipo.int/amc/en/domains/decisions/html/2000/d2000-0430.html)
All the above cases were solved with the transfer of the domain name to the
complainants.
13. Renewal snatching
Another cybersquatting
strategy is based on the fact
that certain domain names are
registered for a limited period
of time. If the holder of the
domain name registration
does not renew it before the
expiration date, the domain
name becomes free and thus
such can be registered by
anyone.
The cybersquatters often use
software products that
automatically register the
expired domain names exactly
14. Sucks cases
A type of behavior encountered in practice is the
registration of a domain names that includes a trademark
of a third party (eventually together with a negative or
pejorative term such as [trademark]sucks.com or Ihate
[trademark].com), in order to criticize the titleholder of
the trademark.
15. Examples: accorsucks.com, antiphilips.com, airfrancesucks.com
An interesting example is PETA (People for the Ethical
Treatment of Animals), an animal welfare organization. In 1995,
Michael Doughney has registered the domain name PETA.org
that hosted a website under the denomination "People Eating
Tasty Animals“, with links to websites that promoted the sale of
meat and leather products. Although there was a link to the
original website of PETA at the bottom of this website
www.peta.org, PETA has not "tasted“ the joke and introduced a
trademark infringement action, of cybersquatting and of unfair
competition. The Courts have ruled in favor of PETA and have
transferred the domain name, but did not award damages,
considering that Mr Doughney has not acted with intent to harm
PETA.
16. Sucks cases in WIPO case-law
Constant WIPO practice : In general, a domain name consisting of a
trademark and a negative or offensive term (such as [trademark]
sucks.com or Ihate[trademark].com) will be considered very similar to
a complainant's trademark. By putting aside to a trademark a
secondary word does not remove the risk of confusion with the
trademark and also can lead to a likelihood of confusion specifically for
users whose native language is not the same with the domain name’s
language.
17. Relevant case-law:
wal-martsucks.com - Wal-Mart Stores, Inc. v. Richard
MacLeod d/b/a For Sale
(http://www.wipo.int/amc/en/domains/decisions/html/2000/
d2000-0662.html);
abercrombieandfilth.com - A & F Trademark, Inc. and
Abercrombie & Fitch Stores, Inc. v. Justin Jorgensen
(http://www.wipo.int/amc/en/domains/decisions/html/2001/
d2001-0900.html)
These complaints have been solved with the transfer of the
domain names to the complainants.
18. The “tarnishment” concept
Inappropriate behavior consisting in associating a trademark belonging to a
third party with pornography, violence, drugs, etc..
Examples:
• John Zuccarini registered the domain name nicholekidman.com and
nicolekidmannude.com and he was using them to advertise some websites
with explicit sexual content;
• Hasbro, Inc. is the titleholder of the trademark “CANDYLAND” registered
for kids games. Internet Entertainment Group, Ltd. registered a domain
name candyland.com for hosting an adults website.
20. kfc.ro (2002)
Parties: Kentucky Fried Chicken International Holdings, Inc. v. Kimbeomsung
(individual from Republic of Korea)
Panelist: Jonas Gulliksson
Facts: The complainant opened its first KFC restaurant in Korea in April 1984,
and in 2002 held 236 KFC restaurants in this country. In 2002, the
complainant owned nearly 200 "KFC“ trademarks registered in 99
jurisdictions, including Republic of Korea and Romania.
Conclusions: (i) the domain name "kfc.ro" is identical with the trade mark "KFC"
(ii) the respondent has no rights or legitimate interest in the domain name,
(iii) the domain name has been registered and is being used in bad faith by
the respondent.
Decision: The domain name was transferred to the complainant.
21. subaru.ro (2007)
The first rejected complaint concerning a .ro domain name
Conflict between the titleholder of the notorious trademark
SUBARU (Fuji Jukogyo Kabushiki Kaisha) and the former
distributor of the products in Romania (Radacini
Autotrading SRL)
Although the panel found that the domain name was
similar to the earlier trademark and that the respondent
had no rights or legitimate interest in relation to the
domain name, such found that the domain name has been
registered and was used (initially) in good faith (based on
the agreement of the trademark owner), although at the
time of filing the complaint it was clear that the respondent
used the mark in bad faith.
22. ibm.com.ro (2010)
an interesting case between two major competitors namely International
Business Machines Corporation v. Linux Security Systems SRL, the last
registering the domain name ibm.com.ro and leaving it inactive for 14
years;
the panel decided the transfer of ibm.com.ro domain name to the
complainant, finding that there was sufficient evidence to establish bad
faith, given that the respondent registered as the domain name a
distinctive trademark of a competitor without having any right or
legitimate interest over it and keeping it inactive for more than 14 years.
23. annadior.com (2008)
Parties: CHRISTIAN DIOR COUTURE (France) v. Paul Farley
(USA)
Facts: the domain name was used as a website for adults, prohibited to
persons under the age of 21.
Conclusions: (i) the similarity which led to confusion between the
domain name and the complainant’s trademark, (ii) the nature of the
website, with the same impact as a pornographic website - slander /
defamation of the trademark (the concept of "tarnishment of the
trademarks"), and (iii) the respondent's intention to target, by
registering the domain name the complainant’s trademarks were
sufficient arguments for the panel to retain the respondent's bad faith
at the registration and use of the domain name.
Decision: the domain name was transferred to the complainant.
24. moment.ro (2008)
The first .ro case in front of WIPO in which the owner of a domain name
won against a complaint brought by the titleholder of an earlier trademark,
invoking an exception of legitimate noncommercial use of the domain name.
The complainant failed to prove the respondent’s bad faith in registering the
domain name and thus the complaint was dismissed
Also, the panel dismissed the respondent’s complaint regarding the reverse
domain name hijacking of the UDRP policy by the complainant.
26. vinexpert.ro (I)
Object: VINEXPERT SRL requested the court:
To cancel the abusive registration of the vinexpert.ro domain name by the defendant;
The transfer of vinexpert.ro domain name to the plaintiff;
To order the defendant to cease the use of the trademark "VINEXPERT" and the
cancelation of the website www.vinexpert.ro
Facts: The plaintiff was established by registration with the Bucharest Trade
Registry Office on May 19, 1999 under the trade name "VINEXPERT SRL". The
plaintiff is the titleholder of the combined national trademark "VINEXPERT"
no. 060671/December 18, 2003. The defendant registered the domain name
vinexpert.ro on April 30, 2001.
First instance: By the civil decision no. 233 as of February 5, 2008, the
Bucharest Tribunal has rejected the action as unfounded on the grounds that
the plaintiff can not oppose its trademark that has been later registered in order
to obtain the cancellation of the domain name registered by the defendant.
27. vinexpert.ro (II)
Appeal: By the civil decision no. 215 as of 30 September 2008, the Bucharest Court
of Appeals uphold in part the action, has canceled the registration of the domain
name vinexpert.ro and has ordered the cancellation of the website
www.vinexpert.ro on the following grounds:
The trade name registration entitles the plaintiff to claim to third parties
to refrain from any action likely to prejudice its right; or
By including in the domain name, the trade name of the plaintiff, without
proving a right or legitimate interest, the defendant acted in bad faith in
order to create confusion among consumers.
Note: The Court rejected the plaintiff's request for the transfer of the domain
name, considering that such is to be made by making a request to the
National Institute for Research and Development in Informatics.
28. vinexpert.ro (III)
Second Appeal: By the decision no. 5889 as of May 22, 2009, the High
Court of Cassation and Justice, the Civil and Intellectual Property Section
rejected the second appeal as unfounded considering that:
The trade name is protected by the Paris Convention (to which
Romania is a party), by means of an industrial property right;
The third parties are compelled to refrain from any action which
might prejudice a protected industrial property right;
The inclusion of the plaintiff's trade name in the domain name is
likely to cause confusion among consumers, who are expected to
believe that the company that owns the domain name vinexpert.ro
is one and the same with the company that commercializes
products under the trade name VINEXPERT SRL.