WIPO Continues Efforts to Curb Cybersquatting
Geneva, February 26, 2002
Press Releases PR/2002/303
An encouraging trend witnessed in 2001, which saw a modest decline in the number of cybersquatting cases in the .com, .net and .org domains, was quickly reversed as new generic top level domains (gTLDs) were rolled out, swelling the total number of cases received by the World Intellectual Property Organization (WIPO) by some 100% in the last quarter of the year. Moreover, it is anticipated that the internationalization of domain names will also create new opportunities for cybersquatters as it becomes possible to register domain names in non-ASCII characters such as Chinese.
To address concerns that the arrival of seven new gTLDs - .aero, .biz, .coop, .info, .museum, .name, .pro - has created new opportunities for cybersquatters, their registries have introduced a number of new dispute resolution solutions (see section on Registry Specific Start-Up Policies). With the roll-out of the .info domain, one of the new gTLDs, an additional 1,579 cases were received in 2001 under a special "Sunrise" policy designed to help prevent abusive registration of trademarks. Thousands more of such cases are currently being filed with WIPO in an effort to wrest back trademarked names from alleged cybersquatters.
In 2001, the total number of cases filed with WIPO under the Uniform Dispute Respolution Policy (UDRP), the dispute policy for the .com, .net and .org categories, reached 1,506 compared with 1,841 in 2000. This suggests that an expedited on-line dispute resolution service has been effective in dissuading Internet pirates from hijacking names.
"The decline in number of cybersquatting cases relating to .com, .net and .org in 2001 is very good news. We should always remember that the full potential of electronic commerce will only be realized in an environment where the rights of all are respected and guaranteed," said Mr. Francis Gurry, WIPO Assistant Director General, who oversees WIPOs work relating to domain names and electronic commerce. "However, we must not be complacent. Fresh opportunities are opening up for cybersquatters as new gTLDs come on-line and as it becomes possible to register domain names in different language scripts. As indicated by the new cases filed with WIPO, this brings with it new challenges for trademark holders and policy makers." Alternative dispute resolution, such as the services provided by WIPO, are now widely regarded as an efficient, quick and cost-effective way to resolve domain name disputes. "While it is difficult to estimate exactly how much money has been saved as a result of alternative dispute resolution, the geographical distribution of parties involved in such disputes suggests that enormous savings have been made owing to the expedited and on-line nature of the procedure, away from foreign courts. For instance, cases filed with WIPO concerned parties from 100 countries worldwide - from Algeria to Zambia - and in every second case, the parties came from different jurisdictions," Mr. Gurry noted.
UDRP Cases
By the end of 2001, WIPO had received 3,348 cases filed under the UDRP, which was launched in December 1999 by the Internet Corporation for Assigned Names and Numbers (ICANN), the technical manager of the domain name system, following recommendations by WIPO - 1 case in 1999, 1,841 cases in 2000, 1,506 cases in 2001. These cases covered 6,137 separate domain names. Most of these names related to .com (2,916), followed by .net (616), and .org (357). The 1,506 cases received in 2001, covering 2,398 domain names, represent some 60% of all such cases filed under the UDRP, including with other dispute resolution providers.
UDRP Cases in the new gTLDs
The UDRP also applies to the new gTLDs, supplementing the specific dispute resolution policies developed by the individual registries (see below). WIPOs Arbitration and Mediation Center received its first .info case filed under the UDRP on October 5, 2001 and issued the first WIPO UDRP panel decision concerning a .info case on December 14, 2001. On December 12, 2001, the Center received its first .biz domain case filed under the UDRP. On February 14, 2002, the first panel decision in .biz was issued by WIPO.
Internationalized Domain Names (UDRP)
WIPOs dispute resolution services are multilingual. So far, WIPO has processed cases in Chinese, English, French, German, Japanese, Korean, Norwegian, Portuguese, and Spanish. Since it has become technically possible to register domain names in "internationalized" or non-ASCII script, WIPO has received 26 cases relating to domain names registered in Chinese, French, German, Japanese, Korean, Norwegian and Swedish. Decisions have been rendered in 22 of these cases. It is anticipated that this trend will continue in view of estimates that by 2003 two-thirds of all Internet users will be non-English speakers.
Country Code Cases (UDRP)
In addition to its role as dispute resolution provider for the gTLDs, the Center provides services to 23 country code top-level domains (ccTLDs) which have voluntarily adopted the UDRP or a similar procedure. In 2001, 54 cases involving ccTLDs were received, representing 3.5% of all UDRP cases filed with the Center. Of these, 36 cases were resolved through panel decisions and 8 through settlement between the parties.
WIPO Panelists
The outcome of all domain name cases is decided by independent panelists, appointed by WIPO. WIPO has an expanding list of 260 panelists from 43 countries in all regions that are selected for their impartiality, sound judgement and substantive experience in trademark law, electronic commerce and the Internet. The transparency of their role is enhanced by the Centers publication of all panel decisions (at: https://www.wipo.int/amc/en/domains/cases/all.html). WIPO regularly organizes meetings for panelists to exchange experiences in applying the UDRP procedure, and further facilitates such exchanges via an online Panelists Forum. These measures contribute to enhancing the overall consistency of UDRP decisions rendered by WIPO panels.
Registry Specific Policies
Domain name disputes in the new gTLDs (.aero, .biz, .coop, .info, .museum, .name, .pro) will also be subject to the UDRP. In addition, registry operators have developed, or are in the process of developing, specific dispute resolution policies designed to avoid the flood of cybersquatting cases generated by the initial introduction of domain names. These policies establish procedures that offer trademark owners additional means to preempt and counter abusive and bad-faith registration of their trademarks as domain names within a specified start-up phase. The WIPO Arbitration and Mediation Center has worked with registries to implement these policies which include the so-called "Sunrise Challenge Policy" developed by the .info registry and the Start-Up Trademark Opposition Policy ("STOP") adopted by the .biz registry.
.info "Sunrise" Cases
The .info "Sunrise" registration period (July 25 to August 28, 2001), gave trademark owners an early opportunity to register domain names that were identical to their marks (registered before October 2, 2000). This was followed by a "sunrise challenge period" from August 28, 2001 to December 26, 2001 that allowed such "sunrise" registrations to be challenged for non-compliance with the "sunrise" registration requirements under the Sunrise Challenge Policy (SCP). The WIPO Center, designated as the exclusive dispute resolution service provider by Afilias, the .info registry, received 1,579 .info SCP challenges between August and December 2001, 599 of which were resolved in 2001. In January 2002, the Center received a further 1,921 so-called "challenges of last resort", filed by Afilias itself. The Center expects to receive over 10,000 more such cases by the end of February. Registration of .info - an open TLD without restrictions, meaning that anyone can register any domain name - opened to receive applications from the general public on September 12, 2001.
.biz "STOP" Cases
The .biz domain is an open TLD for commercial or business purposes. NeuLevel, the .biz registry, implemented a procedure giving trademark holders an opportunity to protect their trademarks by registering an advanced claim to ensure that any attempt by a third party to register a domain name identical to their mark may be referred to an expedited dispute resolution process comparable to the UDRP. Under this process, known as "STOP" (Start-Up Trademark Opposition Policy), the trademark holder is able to initiate a complaint in respect of a registered domain name on the grounds that such a name was registered or used in bad faith. Under this mechanism, which began on November 19, 2001, the Center has so far received 56 cases. The first such WIPO "STOP" case was decided by a WIPO Panel on February 14, 2002.
.name Procedures
Since January 15, 2002, the Center provides services for .name, an open gTLD for registration of personal names or names of fictitious characters. As a pre-registration trademark protection mechanism, the registry, Global Name Registry, gave trademark owners the opportunity to apply for a defensive registration. Such a defensive registration can not be used as a domain name but prevents others from registering the reserved name without the consent of its holder. Domain name applicants can overcome this blocking effect by proving their eligibility, under the Eligibility Requirements Dispute Resolution Policy ("ERDRP"), to register in the .name domain.
Other New gTLDs
The other new domains have partly become operational, such as .coop (for cooperatives) on January 30, 2002, or, like .aero (for the aviation community), .museum (for museums), and .pro (for professionals), are expected to become operational and to introduce their dispute resolution policies in the first part of 2002. The WIPO Arbitration and Mediation Center is preparing to implement these policies drawing on its wide expertise in the area of domain name dispute resolution.
WIPO ccTLD Database and Trademark Database Portal
WIPO has recently gone live with a publicly accessible database that facilitates on-line searches for information on country code top level domains. This ccTLD database contains links to ccTLD registration agreements, WHOIS services, and alternative dispute resolution procedures. Of the 243 ccTLDs listed 100 (41%) have posted a registration agreement; 98 (40%) offer a WHOIS service; and 46 (19%) have adopted an alternative dispute resolution procedure. Sixty ccTLDs (25%) do not have a web presence. The WIPO ccTLD database is available at http://ecommerce.wipo.int/databases/cctld/index.html.
Under certain circumstances, the registration of a domain name may constitute an infringement of a trade or service mark. In view of this, it is recommended that domain name applicants check to ensure that the domain name applied for does not infringe the trademark rights of third parties. National and regional intellectual property offices have created a number of on-line trademark databases and have made them accessible to the public through their websites. Through its Portal, WIPO has facilitated access to these databases with a view to the prevention of domain name disputes. The WIPO Trademark Database Portal is available at http://ecommerce.wipo.int/databases/trademark/index.html.
For further information, please contact the Media Relations & Public Affairs Section at WIPO:
- Tel: +41 22 338 81 61 or 338 95 47;
- Fax: + 41 22 338 88 10;
- E-mail: publicinf@wipo.int.