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NewsLetter

The Arbitration and Mediation Center of the World Intellectual Property Organization (WIPO) recently established a service to resolve domain name disputes. This service is to provide an effi- cient and low-cost procedure. The first case was decided and published at the end of last year.

The WIPO Arbitration and Mediation Center The WIPOArbitration and Mediation Center estab- lished a service for the resolution of disputes arising from the abusive registration and use of Internet domain names. The WIPOArbitration and Mediation Center itself was founded in 1994 and is an administra- tive unit of the International Bureau of the World Intellectual Property Organization (WIPO)in Geneva, Switzerland.

The Center’s services embody the Uniform Domain Name Dispute Resolution Policy, adopted by the Internet Corporation for Assigned Names and Numbers (ICANN)on August 26, 1999, and the Rules for Uniform Domain Name Dispute Resolution Policy, approved by ICANNon October 24, 1999. In addition to these dispute resolution services, the WIPO Arbitration and Mediation Center established a Domain Name Advisory Service to cooperate with registrars around the world. This cooperation’s aim is to put in place effective domain name dispute avoidance and resolution systems.

The legal framework

The legal framework for the resolution of disputes between a domain name registrant and another party is set out in the Uniform Domain Name Dispute Resolu- tion Policy (the ICANN Policy). The WIPO Arbitration and Mediation Center acts as a dispute resolution ser- vice provider based on the ICANN Policy. Any person or company in the world can file a domain name com- plaint concerning a «.com», «.net» or «.org» domain

1.2.2000 – def.

ww&p

Walder Wyss & Partners Attorneys at Law

name with the WIPO Arbitration and Mediation Center.

Disputes involving domain names registered in a coun- try-code top level domain (such as «.ch», «.de», «.uk») can not be filed with the Center. The Center’s service is only available for disputes concerning an alleged abu- sive registration of a domain name, which meet the fol- lowing criteria:

– The registered domain name is identical or confus- ingly similar to another’s trademark.

– The domain name registrant has no rights or legiti- mate interests in respect of the domain name in question.

– The domain name has been registered and is being used in bad faith.

The crucial element of these criteria is the bad faith requirement. The ICANNPolicy sets out examples of circumstances that will be considered to be evidence of the registration and use of the domain name in bad faith:

– Circumstances indicating that the domain name was registered primarily for the purpose of transferring it to the owner of the trademark or to the owner’s competitor, for valuable consideration in excess of the registrant’s out-of-pocket costs directly related to the domain name; or

– The domain name was registered in order to prevent the owner of the trademark from reflecting the mark in a corresponding domain name, provided that the domain name registrant has engaged in a pattern of such conduct; or

– The domain name was registered primarily for the purpose of disrupting the business of a competi- tor; or

– By using the domain name, the registrant intention- ally attempted to attract internet users by creating a likelihood of confusion with the other’s mark as to the source, sponsorship, affiliation or endorsement of the registrant’s web.

The WIPO Domain Name Dispute Resolution

by Dr. Marc Schwenninger +41 1 265 75 60 mschwenninger@wwp.ch

No 20 April 2000

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NewsLetter

The ww&p NewsLetter provides comments on new developments and significant issues of Swiss law. These comments are not intended to provide legal advice. Before taking action or relying on the comments and the

information given, adressees of this NewsLetter should seek specific advice on the matters which concern them.

© Walder Wyss & Partners, Zurich, 2000

Münstergasse 2 P.O. Box 4081 CH-8022 Zurich Phone + 41 1 265 75 11 Fax + 41 1 265 75 50 reception@wwp.ch www.wwp.ch London Office 9 Gray’s Inn Square London WC1R 5JQ Phone +44 171 405 2043 Fax +44 171 405 0605

ww&p

Walder Wyss & Partners Attorneys at Law

NewsLetter No 20 April 2000

ww&p

The procedure is only available to resolve disputes between a third party alleging an abusive registration of a domain name and the domain name registrant.

It is not possible to bring a case against the registrar with which the domain name in question is registered.

Nor is it possible for a registrant of a domain name to bring a case against someone who has threatened to sue him and take away his domain name.

The Administrative Procedure

The WIPO Domain Name Dispute Resolution procedure is governed by the ICANN Administrative Procedure rules. These provisions provide for five basic stages:

– The filing of a complaint with the WIPO. – The filing of a response by the person or entity

against whom the complaint was filed.

– The appointment by WIPOof an Administrative Panel of one or three persons who will decide the dispute.

– The issuance of the Administrative Panel’s decision and the notification of the decision to the parties, the concerned registrars and to ICANN.

– The implementation of the Panel’s decision by the concerned registrar in case of a decision that the domain name in question shall be cancelled or trans- ferred. The registrars adopting the ICANN Dispute Resolution Policy agree to enforce the WIPO decisions.

This Administrative Procedure provides a faster and more economical way to resolve a domain name dis- pute than going to court. The Administrative Procedure with WIPOnormally should be completed within 45 to 50 days of the date the WIPOcenter receives the com- plaint. For a case involving between 1 and 5 domain names that is to be decided by a single Panelist, the fee is USD1,000.00. For a case that is to be decided by 3 Panelists, the fee is USD2,500.00. It is up to the parties whether the case is to proceed before 1 or 3 Panelists.

The procedures are more informal than court litigation and the decision makers are experts in domain name disputes. Another advantage is that it provides a proce- dure for resolving a domain name dispute regardless of where the domain name holder or the complainant or the registrar are located.

The ICANNPolicy provides that the mandatory adminis- trative proceeding requirement shall not prevent either the domain name registrant or the other party from submitting the dispute to a competent court. It is possi- ble to file a lawsuit in a court before an Administrative Procedure with WIPOis commenced or after the con- clusion of such procedure with WIPO.

WIPO’s first decision

The first domain name case decided by the WIPOArbi- tration and Mediation Center was the case D99-0001, filed by the World Wrestling Federation Entertainment Inc. The case was decided on December 9, 1999. The domain name at issue was «worldwrestlingfedera- tion.com», registered by a US resident called Michael Bosman. The complainant, owner of two US trade- marks WORLD WRESTLING FEDERATION, argued that Mr. Bosman had not developed a Web site using the domain name at issue or made any other good faith use of the domain name. Mr. Bosman had not contest- ed the allegations of the complainant. WIPO’s decision made clear that the domain name must not only be registered in bad faith but it must also be used in bad faith. Because Mr. Bosman offered to sell the domain name to the World Wrestling Federation Entertainment Inc. for valuable consideration in excess of any out-of- pocket costs directly related to the domain name, Mr. Bosman had used the domain name in bad faith as defined in the ICANNPolicy. Therefore, the Panel required that the registration of the domain name

«worldwrestlingfederation.com» be transferred to the complainant. Meanwhile, the WIPOArbitration and Mediation Center resolved another dozen cases.

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