UDRP

.RU: From Russia Without Love


The Russian Legal Information Agency (RAPSI) is reporting that the Russian Ninth Commercial Court of Appeals will hear an appeal from Tissot, the luxury Swiss watchmaker and member of the Swatch Group, over Holmrook Limited's use of the “Tissot” trademark and the domain name Tissot.ru. Back in December, the Moscow Commercial Court ruled against Tissot on the grounds that the Tissot.ru domain was operated by an authorized third party as an informational website about the French painter, James Tissot. Tissot (the brand) contended that this content was only put on the site after it had filed its suit.

Indeed, the Court's decision does seem curious given that it had previously ruled in favor of other Swatch Group brands Rado and Longines, against Holmrook Limited, over similar trademark and domain name issues. In September 2011, for example, the court ordered the Rado.ru domain transferred to Rado and commanded that Holmrook pay out 50,000 rubles (about $1,650) to Rado in damages. Given that the Tissot suit marks the third case in which Holmrook Limited has been the defendant in domain name disputes involving Swatch Group brands, all signs seem to point towards a bad faith registration. And yet, the Russian court did not see it that way.

Unfortunately, the inconsistencies in this case are (ironically enough) quite consistent with my experience with the .RU ccTLD. The bottom line is, thanks to lax copyright enforcement and a rampant counterfeiting industry, cybersquatting flourishes in the .RU space. Compounding the problem is the lack of any kind of dispute resolution policy (DRP) for .RU domains, which leaves trademark holders with the unpalatable choice of pursuing legal action through the expensive, slow, and inconsistent Russian court system, or attempting to purchase the domain directly from the domain owner.

For brand owners, the best defense is a strong offense: I advise registering all key trademarks in the .RU domain before cybersquatters can. If you're already too late, attempt to negotiate a sale of the disputed domain with the registrant. When all else fails, try the Russian courts as Tissot is now preparing to do for a second time. I will be closely following the appeal, which the court is scheduled to hear on February 8th. 

Is MySace.com Worth Twelve Years in Prison?


Things could be about to get real for Filipino cybersquatters. The Filipino Senate recently passed the Cybercrime Prevention Act of 2012. While still awaiting passage in the Filipino House of Representatives, the proposed legislation criminalizes cybersquatting, making it a "punishable act." Those found guilty could face six to twelve years in prison, a fine of up to 500,000 Philippine pesos (the equivalent of about $11,600), or both.

That's quite a contrast to the U.S.'s Anti-Cybersquatting Consumer Protection Act (ACPA) of 1999. Although ACPA allows for the awarding of damages between $1,000 and $100,000 for cases involving willful cybersquatting, research by FairWinds in 2008 revealed that courts have rarely assessed damages at the upper end of this range. Accordingly, trademark holders prefer the relative ease and lower cost of recovering cybersquatted domains through the Uniform Domain-Name Dispute-Resolution Policy (UDRP), which only has the power to transfer or cancel domains, and therefore provides little deterrent to cybersquatters. The result? Just about anybody can register a domain that is identical or confusingly similar to a registered trademark with relative impunity.

If the Cybercrime Prevention Act passes, it will be interesting to see what happens to cybersquatting in the Philippines. As for the U.S., I suspect that the risk of twelve years behind bars would be enough to deter all but the boldest of cybersquatters.

Got Evidence? California Milk Processor Board Finds Itself Udderly Without


Simply put, not all domains are good candidates for a UDRP complaint. It is the duty of a Complainant and its counsel to both carefully research claims before filing and also to be prepared to alter their strategy if new facts come to light after filing. If these fundamentals are ignored and a Complainant is unable to provide the right evidence, it risks more than just a denial of its claim. Completely unsubstantiated complaints could be judged as an attempt at reverse domain name hijacking, a ruling that could be used against the Complainant in subsequent cases.

The perils of filing a complaint without sufficient evidence were highlighted in a recent UDRP decision handed down by a World Intellectual Property Organization (WIPO) Panelist. In this case, the Complainant, the California Milk Processor Board (the organization behind the Got Milk? advertising campaign) was denied its Complaint against Center Ring Productions, LLC over the domain name GotMilke.com.

Respondent’s owner, a Mr. John Milke, registered the domain in 2010 and argued that it had been chosen purely for its resemblance to his own surname. He also asserted that any similarity to the famous Got Milk? campaign was entirely coincidental. Further, the Respondent stated that the domain had been used exclusively for personal emails and not for commercial gain.

The Complainant introduced no evidence to show that the Respondent was not commonly known by the name Milke and, likewise, was unable to show that the Respondent's choice of the GotMilke.com domain was an attempt to profit from the Got Milk? mark. It seems that the Complainant found it unbelievable that GotMilke.com could have been registered without a desire to profit from the famous ad campaign. Yet this, in and of itself, does not constitute proof and the UDRP Panelist remained unconvinced.

It is surprising, in this case, that the Complainant’s counsel either didn’t adequately research the Respondent or, upon learning the surname of the Respondent's owner, didn't move to suspend the case and initiate settlement negotiations. Once the Respondent's connection to GotMilke.com was discovered, the Complainant would have been better off avoiding the UDRP route altogether and directly negotiating an acquisition of the GotMilke.com domain, or waiting to file the Complaint until able to make its case. Instead, the case was lost and the Complainant narrowly avoided a finding of reverse domain name hijacking.

Knowing When to Say No


On certain occasions here at FairWinds, one of the best things we can do for our clients is tell them no. I’m specifically referring to recovering domain names via UDRP. Not every domain name is a good candidate for a UDRP complaint, because while the UDRP is a great system, it does have a limited scope. And sometimes, we need to find different ways to recover key domain names for our clients.
 
This week, the National Arbitration Forum (NAF) Panel reached a decision over the domain names goggle.com, goggle.net and goggle.org, in which Google was the Complainant. Both Google and the Respondent prepared excellent arguments and exhibits – so much so that in the written decision, the Panelists actually complimented both parties, saying, “The evidence and arguments relied on by the Parties, relating to the Policy, are extensive and ably done.”
 
So why wasn’t Google successful? Because before the Complaint was filed, Google and the Respondent has entered into a business agreement. This means that the dispute over goggle.com, goggle.net and goggle.org was actually a business or a contractual dispute, not just a dispute over the rights to a domain name. The Panel determined that it was not within its purview to interpret that agreement. These kinds of issues fall outside of the scope of the UDRP.
 
We’ve seen this before, where Complainants file a UDRP complaint when they should really be filing a commercial lawsuit, a claim under the ACPA, or another type of legal action. In other cases, even legal action is not an ideal choice. The key to a successful domain name recovery strategy is knowing all of the options available, and picking the most appropriate course of action for each unique case.

Can Lack Of Bad Faith Be Transferred?


“Bad faith” can some times be the trickiest element to prove when trying to demonstrate that a registrant has cybersquatted a domain name. Many times, whether a domain owner has acted in bad faith comes down to timing, specifically when he or she first registered the domain name. This principle was called into question during a recent cybersquatting lawsuit in a Los Angeles federal court.

Erik Bethke, the founder of the virtual pet game and social network GoPets Ltd., had attempted to purchase the domain name GoPets.com from its owner, Edward Hise. Bethke initially offered Hise $750 for the domain, but when Hise rejected the offer, Bethke filed a UDRP arbitration with the World Intellectual Property Organization (WIPO). Unfortunately for Bethke, because Hise had registered GoPets.com five years before Bethke created GoPets Ltd., the complaint lacked evidence of bad faith and the WIPO Panel denied Bethke’s request to transfer the domain.

After the failed UDRP, Bethke again offered to purchase the domain, this time for $40,000. Hise responded asking for $5 million and threatening to add metatags to the code of GoPets.com in order to redirect visitors to Bethke’s site back to Hise’s domain. After sending that demand, Hise transferred ownership of the GoPets.com domain to Digital Overture, the company that he co-owns with his brother. Through Digital Overture, the Hise brothers have registered over 1,000 domain names.

After Hise transferred the domain, Bethke took legal action, suing him in a Los Angeles federal court for cybersquatting and trademark infringement. He attempted to circumvent the issue of when the domain had originally been registered by arguing that Hise’s renewing the domain name registration and then transferring it to Digital Overture amounted to a new registration. The Los Angeles judge sided with Bethke, awarding him $100,000 in damages as well as the domain name GoPets.com.

However, a three-judge panel of the 9th Circuit judges partially reversed this ruling, on the grounds that the Anitcybersquatting Consumer Protection Act (ACPA) is very clear about its definition of “registration” as referring to the initial domain name registration. In the decision, Judge William Fletcher wrote, “We see no basis in ACPA to conclude that a right that belongs to an initial registrant of a currently registered domain name is lost when that name is transferred to another owner.”

The judges did agree that both Hise and his brother had shown bad faith after the UDRP proceedings, and had also violated unfair competition laws during their negotiations with Bethke. The Los Angeles judge is now left to decide what relief might be appropriate for these offenses. Whether this decision will have any impact on the way domain transfers are regarded under UDRP precedent has yet to be seen.

Aside from highlighting how complex domain name-related matters can be, this case opens up the question of whether or not ACPA needs to be adjusted to more adequately cover scenarios of domain name transfers, as well as other issues.

The Packers own “Titletown” – Just Not Titletown.com


Packers Titletown LogoThe NFL’s preseason began on Thursday, which means we’re only a few weeks away from football season. And in my house, that means Packers games.
 
The Packers have won more championships than any other team in the NFL. This phenomenon has led to the town of Green Bay being known as“Titletown”; in fact, no fewer than 17 local Green Bay businesses use the term Titletown in their names.
 
This raises some red flags for the Packers, who own a trademark for the term Titletown. When they initially filed in 1990, it was to use the term on apparel like shirts and hats, but in November 2010, the team expanded the trademark to cover other businesses like resorts, conference centers, restaurants, bars, concerts and others, as well as an array of real estate services.
 
The Packers spend a good deal of time policing their trademark rights to “Titletown,” even convincing a local distillery to open a new bar and restaurant under the name “Green Bay Distillery” instead of “Titletown Distillery,” as it had originally planned to do. So needless to say, I was very surprised to find out that the Packers don’t own the domain name Titletown.com.
 
The domain was first registered in 1996, and currently does not host any content. According to the Wayback Machine, in the past the domain has pointed to a site with links to Packers news as well as to merchandise. We’ve seen other examples of UDRPs where past content has been factored into the Panel’s decision, meaning the Packers could have a fighting chance at recovering the name via UDRP.

Harvard Mag Gets Lampooned


Harvard Lampoon LogoAnyone who has ever busted a gut laughing at Animal House or any of the Vacation movies owes a big guffawed thanks to the Harvard Lampoon, an undergraduate humor publication founded in 1876 at Harvard University that inspired the creation of National Lampoon. The bastion of wit that is the Harvard Lampoon credits itself with inventing the word “pizzazz,” and is also the source of one of my dad’s favorite groan-inducing jokes of all time: “Did you get a hair cut?” “No, I got all of them cut” (my dad, of course, being almost as old as the magazine itself).

Unfortunately, anyone familiar with domain name dispute resolution procedures (as in, all of us here at FairWinds) knows how tough it can be to assert rights to a generic term domain name. Despite being the longest-running humor magazine in history, and despite being from Harvard, the Harvard Lampoon was unsuccessful in its attempt to claim the domain name Lampoon.com from the Florida-based Reflex Publishing via UDRP. The three-person World Intellectual Property Organization panel did not find that there was sufficient evidence to show that Reflex Publishing had registered the domain with the intention of profiting from and exploiting the Harvard Lampoon’s rights to the “Lampoon” mark.

It’s worth noting, of course, that the longest-running humor magazine in history didn’t quite get around to actually registering that mark until 2000, two years after Reflex Publishing had registered the domain name. (Fun fact: the Harvard Lampoon actually uses the term “Harvard” under a license with the university.) Additionally, all the exhibits that the Harvard Lampoon provided to demonstrate its longstanding common law trademark rights to the “Lampoon” mark – magazine covers, book covers and the like – all displayed the phrase “The Harvard Lampoon,” not “The Lampoon.”

Of course, there is always the chance that this filing was actually just a parody of a real UDRP complaint.

Atlas Shrugged, WIPO Didn’t


Atlas Shrugged Book CoverAyn Rand’s renowned novel Atlas Shrugged has become famous around the world as an ode to the merits of a free market system. Last year, production began on a movie version of the first part of the novel. Atlas Shrugged: Part 1 opened in select theaters earlier this spring.

Shortly after the opening, Atlas Productions, a New Jersey company, filed for UDRP arbitration against the owner of the domain name AtlasShruggedMovie.com, claiming that it had acquired the exclusive movie rights to Atlas Shrugged by assignment in 1992. Unfortunately, the company, represented by Loeb & Loeb, LLP, never provided a copy of that assignment to the World Intellectual Property Organization Panelist who arbitrated the dispute. Moreover, it was unable to prove that the owner had registered the domain in bad faith; notably, the domain was registered more than five years before Atlas Productions began to promote the movie.

Ultimately, the WIPO Panelist denied the complaint. In his decision, he took the opportunity to take the Complainant to task, stating the following:

"Evidence, not allegations, is necessary. And nothing is more fundamental to a Policy proceeding – or more within a complainant’s control – than its right to enforce the trademark upon which it bases its case. If Complainant did acquire trademark rights by contract, documentary or other evidence of such rights was surely available to it. Absence of such evidence raises real doubt about Complainant’s entitlement to bring this proceeding."

Whether you’re filing your first UDRP or your thousandth, it is crucial to make sure that you provide the proper evidence every single time. And if you want to acquire a domain name to which you don’t have trademark rights, the UDRP is not the proper tool to use.

“The Biggest Loser” Domain Name Win


Hannah Before and AfterOlivia Before and AfterI am a huge fan of the NBC show “The Biggest Loser.” I find the contestants’ weight loss stories inspirational and I even follow this season’s winner Olivia and her sister Hannah, this season’s runner-up, on Twitter. I’m not even ashamed to admit that. What’s up, @BL11Olivia and @BL11Hanna!
 
So needless to say, I was quite excited to see that Reveille LLC, the movie and television studio that produces “The Biggest Loser,” reclaimed the domain name TheBiggestLoser.com via UDRP arbitration from its previous owner. The domain was being used to host a variety of information about diet and weight loss, some of which was affiliated with The Biggest Loser brand.
 
Reveille owns other similar domains, including BiggestLoser.com, TheBiggestLoserClub.com and TheBiggestLoserStore.com. Now, the company can add another key domain to its portfolio.

Update on UDRP Review


Back in April, I published a post explaining the push within the ICANN community to review, and potentially reform, the Uniform Domain Name Dispute Resolution Procedure (UDRP). On Wednesday, an article in World Trademark Review reported that ICANN has published a report asserting that a full-scale review of the UDRP is not recommended.
 
This comes as hugely positive news for certain constituencies, including many trademark owners and UDRP providers, especially the World Intellectual Property Organization (WIPO). Earlier this year ICANN hosted a webinar to discuss the topic of UDRP review, and the majority of participants raised strong opposition to the notion.