March/April 2002 Volume 19, No. 2
In the News... Editor Paul J. Raine [email protected] By Paul J. Raine, Attorney at Law http://www.michbar.org/sections/computer/ n n n n n Springtime ctio ctio ctio ctio ctio Even my laptop computer is confused as to The networking luncheon is a good example of your council’s whether it is Spring or Summer lately. After a long concern that it provide value to section members. This newsletter, the Winter it appears to have a bad case of cabin fever. Ed Langs Annual Writing Award, ICLE seminars and open programs at Sending print jobs to network printers takes a lot our council meetings are other examples. Our impression, based upon w w Se Se w Se w w Se Se more time these days, and when I take it home, it attendance at other events we have sponsored, is that our members refuses to work at all. Perhaps I should follow its prefer these relatively brief, highly informative and fairly frequent edu- lead and take time to enjoy the change of season. cational opportunities. We have tried golf weekends like other sections Each year, the Computer Law Section marks (and we’re happy to try one again), but nothing attracts an audience as the arrival of Spring with its annual networking well as our core events. I leave it for others to speculate on the reasons er er La La er La er er La La luncheon. Past topics have included computer for this. t t t t t crime, UCITA and e-commerce. The discussion is Of course, the council is always open to new ideas. Last year we always very timely and the speakers very promi- implemented the section’s seminar reimbursement policy under which nent in the field. Equally important, the format en- section members may seek reimbursement for attending a seminar on a mpu mpu mpu mpu mpu courages attendees to relax and mingle. It is al- relevant topic. In return, we expect the member to discuss the seminar o o o o o ways our best attended event of the year, and it is at a council meeting and to prepare a paragraph or two on the subjects always very difficult to end the luncheon and be- discussed for the section newsletter. We all benefit. n n C C n C n n C C gin the Council business meeting. So, we urge you to share any other ideas you have as to how the This year’s networking luncheon will con- section can provide you with timely, useful benefits. Contact me tinue that tradition, on May 23, 2002 at the Livonia ([email protected]) or any other council member (con- iga iga iga iga iga Marriott in Laurel Park. Once again, Kim Paulson tact information is available through www.michbar.org) with your h h h h h is responsible for the arrangements, this time with thoughts. Your council always welcomes your input. the help of past-chair Larry Jordan. More infor- In the meantime, go out and enjoy the nice weather. mation about the luncheon will appear in this Newsletter and in materials you will receive by email and regular mail. I encourage all members to attend. It is a great opportunity to make contact with others who share our interest in computer r r of of Mic Mic r of Mic r r of of Mic Mic law and to learn a great deal about the featured topic. e e Ba Ba e Ba e e Ba Ba t t t t t a a a a a Assessing the UDRP: Trademark Owners 15 Spring Network Luncheon t t
t 3 t t are Unfairly Favored Registration Form S S S S S March/April 2002
Michigan Computer Lawyer is published bi-monthly. If you have an article you would Register Now like considered for publication, send a copy to:
Paul J. Raine The Annual Spring Attorney at Law PO Box 99773 Networking Luncheon Troy, MI 48099 is scheduled for [email protected] May 23, 2002. Statement of Editorial Policy The aim and purpose of the Michigan Computer Law Section of the State Bar of Turn to page 15 for Michigan is to provide information registration relative to the field of computer law, and other information that the section information. believes to be of professional interest to the section members. Unless otherwise stated, the views and opinions expressed in the Michigan Computer Lawyer are not necessarily those of the Computer Law Section, or
the State Bar of Michigan.
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ComputerComputer LawLaw SectionSection
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Officers Chairperson—Jeffrey G. Raphelson Chairperson-elect—Anthony A. Targan Secretary—Frederick E. Schuchman III Treasurer—Sandra Jo Franklin
Council Members Ex-Officio Patrick D. Berryman Janet P. Knaus Claudia V. Babiarz Michael S. Khoury Chadwick C. Busk Bernard T. Lourim Thomas Costello Jr. J. Michael Kinney Bettye S. Elkins Paul J. Raine Kathy Damian Thomas L. Lockhart Christopher J. Falkowski Jeffrey G. Raphelson Robert A. Feldman Janet L. Neary Sandra Jo Franklin Jerome M. Schwartz Mitchell A. Goodkin Steven L. Schwartz Kevin T. Grzelak David R. Syrowik William H. Horton Carol R. Shepard Dwight K. Hamilton Anthony A. Targan Charles P. Kaltenbach Mary I. Hiniker Gregory L. Ulrich Alan M. Kanter Commissioner Liaison Immediate Past Chair J. Cedric Simpson Lawrence R. Jordan 2 Michigan Computer Lawyer Assessing the UDRP: Trademark Owners are Unfairly Favored
By Tracy Zawaski, Second place winner of the 2001 writing competition
Because of the importance of the Internet and develop- ○○○○○○○○○○○○
I. INTRODUCTION○○○○○ 3 II. BACKGROUND ment of the global information infrastructure, the U.S. govern- A. Internet Protocol Numbers and the DNS ment has tremendous interest in legitimizing ICANN and its authority over the domain name system (“DNS”).1 In particu-
System ○○○○○○○○○○○○○○○○○○ 3
B. How the Domain Name System Works○○ 3 lar, the UDRP is a small step in worldwide Internet policy,
C. History of the Internet○○○○○○○○○○ 4 which could eventually lead to worldwide Internet laws, such
D. NSI’s Dispute Resolution Policy○○○○○ 4 as content control regulations, and mandating and enforcing
2 ○○○○
E. Creation of ICANN○○○○○○○○ 5 privacy and security policies. ○○○○○○ F. Structure of the UDRP○○○○○ 5 This paper discusses the implementation of the UDRP and
G. Types of Domain Name Disputes○○○○○ 6 its effects on the Internet’s evolution. This paper takes the po- H. Collision between Domain Names and sition that the UDRP unfairly favors trademark holders because
Trademark Law○○○○○○○○○○○○○○ 6 it permits the complainant to engage in forum shopping. In ad- dition, certain key terms are defined ambiguously, thereby al- III. ANALYSIS lowing arbitrators considerable discretion to employ their own A. Forum Shopping
judgment with utter disregard to established trademark prin- ○○○○
1. Average cost○○○○○○○ 7
ciples. The lack of legal guidelines compromises free speech 2. Favorable Outcome○○○○○○○ 7 3. Complainant’s Country and fair use rights normally associated with trademark law, and the UDRP creates conflicting laws that are not subject to the
of Origin○○○○○○○○○○○○ 8
4. Decision Time○○○○○○○○○○ 9 checks and balances of customary judicial proceedings. For B. Ambiguously-defined Terms these reasons, the UDRP prefers trademark holders over non-
1. “Use” of the Domain Name ○○○ 9 trademark holders. ○○○○
2. Defenses○○○○○○○○ 9
3. Generic Terms ○○○○○○○○○○ 9 II. BACKGROUND
C. Precedent Problems○○○○○○○○○○○○ 9
D. Reverse Domain Name Hijacking ○○○○○ 10 A. Internet Protocol Numbers and the DNS System
Every computer connected to the Internet must have an IV. CONCLUSION○○○○○○○○○○○○○○○○○○○○ 10 Internet Protocol (“IP”) number to send and receive informa- tion.3 For example, the IP number for one of the servers at Wayne State University (“WSU”) is “141.217.1.15”.4 Rather I. INTRODUCTION than typing in this number to access the WSU website, how- Since its creation, the Internet Corporation for Assigned ever, an Internet user can type “www.wayne.edu” to achieve Names and Numbers (“ICANN”) has faced considerable criti- the same result. This is possible because of the DNS,5 a sys- cism and controversy, largely on account of its Uniform Dis- tem that maps IP numbers and domain names to make it easier pute Resolution Policy (“UDRP”). Proponents of the UDRP for Internet users to navigate the World Wide Web.6 favor the policy because it facilities resolution of domain name disputes; however, the benefits may well be outweighed by the B. How the Domain Name System Works costs. The policy extends the rights of trademark owners to an The DNS is a hierarchical mapping system that directs an 7 unprecedented and unwarranted level, at the expense of indi- Internet user to the desired website or email address. The vidual rights. DNS is divided into top-level domains (“TLD”) such as continued on page 4 3 March/April 2002
“.com”, “.edu.”, “org.”, “.ca”, etc.8 Each TLD is divided into by other government agencies, universities and research facili- second-level domains (“SLD”).9 The SLD is the part of the ties. This “network of networks”26 became the Internet as we address immediately preceding the TLD, such as the term know it. “wayne” in the “www.wayne.edu” example. The SLDs are Until about 1984, the Internet was used almost exclusively further separated, and so on. When a person types an alphanu- for research purposes, and there were few enough computers meric Uniform Resource Locator (URL), which is the entire connected that a formal organizational system was not re- phrase following “http://”, the host computer will translate the quired.27 However, since the Internet is decentralized in nature, URL into an IP number.10 a properly-functioning addressing system is essential to prop- At the very top of the Internet hierarchy is the “root file.”11 erly direct Internet communications.28 Therefore, when it the The root file is a single data file that contains the list of comput- name list became difficult to maintain,29 scientists, including ers that hold the master lists of TLDs.12 Several “root servers,” Dr. Postel, created the DNS.30 Management of the DNS, along which contains information about every entry in the DNS, with various other Internet infrastructure functions, was con- serve the root file.13 For example, in the “www.wayne.edu” ducted by an entity which eventually became known as the illustration, the user’s computer will query one of the root Internet Assigned Numbers Authority (“IANA”).31 The Depart- servers, which would lead the user’s computer to the particu- ment of Defense, which directed and funded most of the lar computer listing the domain names with the TLD “edu.”14 Internet’s development, entered into contracts with ISI to per- The computer listing the “edu” TLDs would then lead the form the management functions.32 user’s computer to the computer listing domains within the The National Science Foundation (“NSF”)33 later took “wayne” SLD and point the user’s computer to the proper over the Department of Defense’s function of Internet funding. Internet address.15 In 1993, NSF entered a cooperative agreement with a private However, it may not be necessary for the user’s computer company, Network Solutions, Inc. (“NSI”), whereby NSI be- to query the root servers, as many Internet Service Providers came the registrar for certain top-level domain names.34 Under keep a “cache” of frequently-requested domain addresses to the initial agreement, IANA continued to supervise the alloca- serve their customers more efficiently.16 Thus, when an tion of IP numbers and domain name registrations.35 Internet user types in the “www.wayne.edu” domain name, the In 1995, NSF changed its agreement with NSI to give NSI user’s computer will look to local DNS servers to find the IP control over the second-level domains.36 Under the amended address matching that domain name.17 If the local DNS servers agreement, NSI was also permitted to charge registrants for its can’t make the match, the inquiry is transmitted to a higher registration services.37 NSI was the exclusive domain name level of servers.18 An inquiry, therefore, may result in a match registrant for top-level domain names for the next several at a low local server level, or it may travel up the hierarchy all years. However, many people were unhappy with NSI’s con- the way to a root server before a match is achieved.19 trol over the DNS, particularly with the registration fees.38 Crit- ics ranged from “old-school Netheads who argue that the do- C. History of the Internet main names should be managed through open protocols, to The U.S. Department of Defense developed the Internet’s large corporations that have complained about NSI’s proce- predecessor in the 1960’s by funding a project to develop a dures for resolving disputes over trademarks.”39 communication network to link government agencies, univer- sities and research facilities.20 The purpose of the project was D. NSI’s Dispute Resolution Policy to facilitate sharing of research and other information.21 The NSI was heavily criticized for its first-come, first-served initial project, called ARPANET, was an experimental project of domain name registration procedures, as well as its inadequate the advanced Research Project Agency (“ARPA”).22 The dispute resolution policies.40 NSI’s policy, which was adopted ARPANET became known as “DARPA Internet,” and eventu- in 1995,41 permitted trademark owners to challenge a domain ally the “Internet.”23 name registration based on their trademark rights.42 In 1998, The ARPANET/Internet development work was con- the policy was modified to permit trademark owners to “cut- tracted to various universities, including the University of off” a disputed domain name until the dispute was resolved.43 Southern California’s Information Sciences Institute (“ISI”) at Both the 1995 and 1998 policies disregarded the “likelihood of Los Angeles.24 Dr. Jon Postel, then a graduate student at the confusion” standard for trademark infringement, resulting in a university, was charged with maintenance of the master list of dispute resolution policy that was both under and host names and addresses, as well as other ARPANET docu- overinclusive.44 The policy applied only to identical trade- ments.25 ARPANET was later linked to networks established marks, and therefore was too narrow from a trademark
4 Michigan Computer Lawyer owner’s perspective. As a result, a trademark owner with a Boston Working Group and the Open Root Server Confedera- registration for “MICROSOFT” could prevent someone else tion (“Open-RSC”).66 Both the Boston Working Group and from using the domain name “www.microsoft.com” to sell Open-RSC submitted proposals for the organization of a new baked goods (or anything, regardless of whether there was a non-profit entity.67 likelihood of confusion), but could not invoke the policy Ronda Hauben submitted a third proposal,68 and Jeffrey A. against the domain name “www.microsoftsoftware.com.”45 Williams submitted a proposal on behalf of INEG Inc.69 Finally, Meanwhile, Dr. Postel proposed that IANA authorize new Dr. Postel submitted IANA’s proposal for ICANN.70 All pro- top-level domains to be operated by third parties.46 The Inter- posals were published for comment for a ten-day period, after national Ad Hoc Committee (“IAHC”)47 was organized to which the National Telecommunications and Information Ad- evaluate Dr. Postel’s proposal. The IAHC proposed to add ministration (“NTIA”) entered into a “memorandum of under- seven new top-level domains to the DNS.48 The IAHC proposal standing” with ICANN.71 The memorandum of understanding included multiple, globally-dispersed registrars that would op- required the Department of Commerce and ICANN to jointly erate under a Council of Registrars (“CORE”).49 CORE was develop procedures for transferring DNS management to the organized as a non-profit association to control the new regis- private sector.72 try from its headquarters in Switzerland.50 In response to the IAHC proposal, CORE registrars began E. Creation of ICANN “pre-selling” domain name registrations in the new domains.51 Under IANA’s proposal, Dr. Postel, as ICANN’s Chief However, NSI still controlled the root server under its contract Technological Officer, agreed to perform IANA’s technical with the U.S. government, and refused to insert the new do- management functions under the principles espoused in the 73 mains into the root server without specific authorization.52 The White Paper. ICANN’s initial Board of Directors was com- U.S. government ordered NSI to wait, as the Clinton adminis- posed of “distinguished personages with little involvement in tration was analzing the domain name situation from the (and, for the most part, little knowledge of) the ‘DNS wars’ of 74 government’s perspective.53 the previous few years.” Little is known about the selection In July 1997, President Clinton ordered the Secretary of process for the Board on account of the clandestine recruiting 75 Commerce to privatize the DNS to increase competition and efforts and discussions. An effort to include neutral persons facilitate international participation in its management.54 The on the Board (i.e., people without past involvement in the DNS 76 Department of Commerce issued a “Request for Comment” wars) resulted in a Board with little DNS expertise. However, regarding administration of the domain name system, and then the Board’s lack of technical expertise was not viewed as a published a notice of proposed rulemaking55 known as the problem because Dr. Postel would manage the technical as- 77 “Green Paper.”56 The Green Paper recommended formation of pects of ICANN as Chief Technological Officer. Unfortu- a U.S.-based nonprofit corporation to run the domain name nately, before the NTIA entered into the memorandum of un- system.57 Much like the IAHC proposal, the Green Paper fur- derstanding with ICANN, Dr. Postel underwent heart surgery 78 ther recommended the immediate creation of additional top- and died shortly thereafter. level domains and competing registries and registrars.58 As a result of Dr. Postel’s sudden death, crucial decisions In response to public comment to the proposed regarding ICANN’s organization and administration were made 79 rulemaking,59 the Department of Commerce issued the “White by ICANN’s Board of Directors. The Board was heavily in- Paper” in 1998.60 The White Paper sought to stop the role of fluenced by those with high stakes in Internet administration, the U.S. government in the DNS.61 The White Paper an- such as NSI, trademark owners, intellectual property scholars 80 nounced the Department’s decision to “enter into agreement and attorneys, and international standards organizations. Es- with a new not-for-profit corporation formed by private sector tablishing the UDRP was one of the Board’s first major deci- Internet stakeholders to administer policy for the Internet name sions, and pressure levied on the board by trademark interests 81 and address system.”62 The White Paper identified several resulted in a UDRP that unfairly favors trademark holders. principles, namely, stability, competition, private, bottom-up F. Structure of the UDRP 63 coordination, and representation, to guide the new entity. The UDRP is divided into nine sections, the most important 64 The White Paper was met with several proposals. NSI providing for “mandatory” administrative proceedings to re- initiated a group called the International Forum for the White solve trademark disputes.82 The UDRP differs from NSI’s dis- Paper, which held a series of meetings in Virginia, Geneva, pute resolution policy in three respects.83 First, there is no pro- 65 Singapore, and Buenos Aires. However, a “wrap-up” meeting vision for trademark owners to cut off domain names pending failed to occur, leading to the formation of two new groups, the
5 March/April 2002 resolution of a dispute.84 Second, there is a “bad faith” predi- cyberquatters register the personal names of celebrities, such cate for invoking the UDRP.85 Finally, the UDRP requires man- as “juliaroberts.com.”102 Motives for this type of registration datory dispute resolution, through arbitration by an ICANN- range from hopes of selling the name, to using the name for a approved provider.86 fan site, to a parody, to linking the name to another site to gen- Under the UDRP, anyone can initiate a dispute by submit- erate traffic. ting a complaint to the ICANN-approved provider of its Competitor disputes arise when a company registers choice.87 A complaint must allege that a domain name registrant: the name or mark of its competitor to prevent them from that 1) has registered a domain name which is “identical particular domain name, or to detour potential customers to the or confusingly similar to a trademark or service mark registrant’s own website.103 Palming off disputes occur when in which the complainant has rights”; and someone registers a domain name merely to benefit from traf- 2) has “no rights or legitimate interests in respect of fic intended for someone else. For example, the operator of a the domain name;” and pornographic website might register the domain name 3) the “name has been registered and is being used in “juliaroberts.com” to generate traffic for its website from bad faith.”88 people looking for Julia Roberts. The complaint must also fulfill various procedural require- Parody disputes occur when a person registers a domain ments and specify whether the complainant elects a single- name that is similar to a company’s name or trademark (i.e., member or three-member arbitration panel.89 After a complaint www.walmartsucks.com) to criticize or satirize the com- is submitted, the provider will verify compliance with the ad- pany.104 Finally, competing interest disputes arise when two ministrative regulations, and forward a copy to the registrant.90 people with legitimate interest in the same name or mark wish Under the Rules, the registrant has 20 days to respond to the to register the same domain name.105 complaint, and may request either a single-member or three- member arbitration panel.91 If either party requests a three- H. Collision between Domain Names & Trademark Law member panel, each party may specify three potential arbitra- Trademark law is intended to keep consumers from being 106 tors to comprise one panel member.92 The provider then has confused. Trademark law does not give a person the exclu- five days to select a panel (from an ICANN-approved list). The sive right to use a name or word; rather, it grants the “right to provider must select one arbitrator from each party’s list of make trademark use of a word on the products you sell in those 107 potential arbitrators if possible, but may select the panel itself if markets in which you have actually done business.” Thus, it is unable to “secure the appointment” of a particular arbitra- most trademarks are both territorial and product specific in na- 108 tor within the five-day period.93 The complaint and response ture. Accordingly, multiple parties can use the same name or are then submitted to the panel, which has fourteen days to word to identify their particular goods or services. For ex- issue a decision.94 The panel may apply “any rules and prin- ample, United Van Lines has the exclusive right to use the ciples of law that it deems applicable”95 to resolve the matter. UNITED mark for its moving services, while United Airlines The decision must be in writing, and if a three-member panel has a contemporaneous right to use the UNITED mark for its 109 has been chosen, a majority decision is required.96 However, airline services. Conversely, a domain name registration for 110 dissenters must also issue a written opinion.97 A decision must “united.com” can only go to one or the other. be communicated to the parties within three days, and all deci- The narrow time limits set by the Rules and the arbitration sions are published on ICANN’s website.98 fees prescribed by the various providers make the UDRP fast and cheap in comparison to customary litigation in the United G. Types of Domain Name Disputes States. The cost and ease of resolving disputes make it a pow- There are five basic types of conflicts that arise with re- erful tool for trademark owners. Unfortunately, it appears that spect to domain names: cybersquatting disputes, competitor the UDRP has caused unwarranted extensions of trademark disputes, “palming off” disputes, parody disputes, and con- law to the detriment of individual rights and free speech. Arbi- flicting interest disputes.99 Cybersquatters register domain tration panels that lack proper guidelines, expertise and time, names to later sell them to others for a profit. Cybersquatting make terrible decisions, mostly in favor of trademark owners. can be legal – for example, one company bought the name The problem is exacerbated by the arbitrators’ tendency to cite “business.com” from an individual for $150,000, and was later prior decisions as binding precedent, even though the UDRP 111 able to sell it for $7.5 million.100 On the other hand, federal law does not require arbitrators to defer to prior decisions. makes it illegal to register someone else’s company or brand name with “a bad faith intent to profit[.]”101 Finally, some
6 Michigan Computer Lawyer
III. ANALYSIS The UDRP is unfairly biased toward trademark SINGLE ARBITRATOR owners for several reasons. First, the complainant gets to pick the arbitrator, and can therefore engage in WIPO eResolution NAF CPR forum shopping. Second, certain key terms in the NUMBER OF UDRP are unintelligibly defined, or not defined at all. DOMAIN NAMES This facilitates bad decisions by arbitrators who are 1 $1500 $1250 $950 $2000 generally not trained in trademark law. Third, the 2 $1500 $1250 $1100 $2000 3 $1500 $1500 $1250 $2500 UDRP’s defenses fail to adequately protect non- 4 $1500 $1500 $1400 $2500 trademark interests. Fourth, prior decisions are often 5 $1500 $1500 $1400 $2500 cited as precedent; however, lack of uniformity be- 6 $2000 $1850 $1750 * tween the law and rules applied in a given case pro- 7 $2000 $1850 $1750 * 8 $2000 $1850 $1750 * vide little predictability for future parties. Finally, de- 9 $2000 $1850 $1750 * spite the anti-reverse domain name hijacking provi- 10 $2000 $1850 $1750 * sion, the UDRP can and has been invoked to snatch 11-15 * $2300 $2000 * domain name registrations away from legitimate us- ers. THREE ARBITRATORS A. Forum Shopping The UDRP permits complaints to engage in fo- WIPO eResolution NAF CPR rum shopping. The complainant chooses the arbitra- NUMBER OF tor, therefore the complainant can speculate as to DOMAIN NAMES which arbitrator is most likely to decide in its favor. 1 $3000 $2900 $2500 $4500 2 $3000 $2900 $2500 $4500 Four arbitrators have been approved for by ICANN 3 $3000 $3250 $2500 $6000 for dispute resolution purposes: the World Intellectual 4 $3000 $3250 $2500 $6000 Property Organization (“WIPO”), the National Arbi- 5 $3000 $3250 $2500 $6000 tration Forum (“NAF”), eResolution,112 and CPR In- 6 $4000 $3250 $3500 * 113 7 $4000 $3900 $3500 * stitute for Dispute Resolution (“CPR”). Since the 8 $4000 $3900 $3500 * complainant pays the arbitration bill, the arbitrators 9 $4000 $3900 $3500 * have an inherent incentive to decide cases in the 10 $4000 $3900 $3500 * complainant’s favor. 11-15 * $4600 $4000 * As of April 19, 2001, approximately 3487 dis- putes have been commenced under the UDRP.114 * To be determined by consultation 2117 of such disputes were submitted to WIPO, 1125 disputes were submitted to NAF, 223 disputes were Prior studies by Dr. Milton Mueller indicate that the cost of submitted to eResolution, and 22 disputes were submitted to arbitration possesses an almost inverse relationship with mar- CPR.115 Researchers suggest four factors may impact a ket share.117 Although WIPO’s market share appears to have complainant’s decision, namely, the average cost, probability decreased slightly since Dr. Mueller’s study was conducted in of a favorable outcome, the complainant’s country of origin, November 2000,118 WIPO still enjoys approximately 60% of and average decision time.116 the market share overall, despite its higher prices as compared 1. Average cost to both eResolution and NAF.119 The table to the right summarizes the costs for arbitration with the various ICANN-approved agencies. 2. Favorable Outcome According to ICANN’s statistics, as of April 19, 2001 there were a total of 2639 dispositions by decision.120 Out of these 2639, 2102 (79.65%) were decided in the complainant’s favor.121 Of the remaining 537, 519 (19.67%) were decided in the respondent’s favor, and there were 18 split decisions.122
7 March/April 2002
This author’s review of ICANN’s List of Proceedings re- The UDRP attempts to balance any preference secured by sulted in slightly different numbers; however, the results con- the complainant (e.g., the trademark owner) via forum shop- firm that nearly 80% of all decisions favor the complainant.123 ping by permitting the respondent to request a three-member The following table summarizes decisions by the ICANN-ap- panel. If the respondent elects a three-member panel, respon- proved arbitrators. dent may suggest three potential candidates for one of the arbi- tration positions. However, this option fails to en- Provider Decisions for Decisions for Split Decisions Total Number sure a level playing field for several reasons. First, if Complainant** Respondent of Decisions respondent requests a three-member panel, it must WIPO 1243 280 10 1533 bear one-half of the arbitration fee. The fee cur- NAF 742 156 1 899 rently ranges from $2500 to $4500 if a single do- eResolution* 110 75 1 186 main name is involved, and half of this amount may CPR 12 7 1 20 be an insurmountable barrier to an individual. Sec- TOTAL 2107 518 13 2638 ond, although the Rules permit each party to suggest three potential candidates for one of the arbitration *Also includes decisions by Disputes.org/eResolution positions, the parties have no way of knowing if their candi- Consortium, eResolution’s predecessor dates are available to serve on the panel.133 If the candidates are ** Includes outcomes where the domain name registra- unavailable or ineligible to serve, the provider chooses alter- tion was transferred or cancelled nates.134 As a result, all three panelists may end up being cho- sen by the provider, who is selected by the complainant.135 As shown in the table above, the majority of cases are sub- mitted to WIPO for disposition, followed not so closely by B. Ambiguously-defined Terms 124 NAF. Both WIPO and NAF appear to be a better choice from Some of the UDRP’s key terms are ambiguously defined, or the complainant’s perspective, with a low probability (less than not defined at all. For example, a complainant must establish 125 20%) that the complainant will lose. In contrast, eResolution that the domain name “has been registered and is being used in and CPR are much more likely to resolve disputes against the bad faith.”136 The UDRP lists four circumstances (without 126 complainant (about 40% and 35%, respectively). limitation) that shall be evidence of bad faith: (i) circumstances indicating that you have registered 3. Complainant’s Country of Origin or you have acquired the domain name primarily for Complainants from outside the United States and Canada the purpose of selling, renting, or otherwise transfer- 127 tend to choose WIPO because of its international reputation. ring the domain name registration to the complainant WIPO is based in Geneva, Switzerland.128 NAF is a U.S. orga- who is the owner of the trademark or service mark nization, with retired judges, attorneys, and law professors or to a competitor of that complainant, for valuable comprising its arbitrators.129 eResolution is a Canadian organi- consideration in excess of your documented out-of- zation, based in Montreal, Quebec.130 Dr. Mueller’s studies in- pocket costs directly related to the domain name; or dicate that national preferences may play more than a trivial (ii) you have registered the domain name in order to role in provider selection, e.g., non-U.S./non-Canadian com- prevent the owner of the trademark or service mark plainants will chose WIPO, Canadian complainants chose from reflecting the mark in a corresponding domain eResolution, and U.S. complainants are likely to chose NAF.131 name, provided that you have engaged in a pattern of However, the studies were conducted when only 621 cases such conduct; or were decided, a small fraction of the current total number of (iii) you have registered the domain name primarily cases. The studies must be updated to verify that the patterns for the purpose of disrupting the business of a com- continue as the total number of cases grows. petitor; or (iv) by using the domain name, you have intention- 4. Decision Time ally attempted to attract, for commercial gain, Dr. Mueller’s studies further analyzed the average amount Internet users to your web site or other on-line loca- of time for a provider to issue a decision. According to such tion, by creating a likelihood of confusion with the studies, it took eResolutions 55 days, WIPO 45 days, and NAF complainant’s mark as to the source, sponsorship, 132 37 days to make a decision. However, as discussed above, affiliation, or endorsement of your web site or loca- the studies were conducted with only a sample of 621 cases, tion or of a product or service on your web site or and further investigation is required. location.137
8 Michigan Computer Lawyer
1. “Use” of the Domain Name With respect to the fair use defense, many panels have It is unclear how broadly the term “use” can be con- failed to accord substantial weight to a registrant’s free speech strued.138 In Telstra Corporation Limited v. Nuclear Marsh- rights.152 It has been somewhat common for a person or entity mallows, a single panelist concluded that “the passive holding to register “[trademark]sucks.com” for use as a critical or of the domain name by the Respondent amounts to the Respon- parody website.153 There have been eleven disputes relating to dent acting in bad faith[,]”139 thereby substituting “acting” for use of a “sucks.com” domain name, nine of which resulted in a the “used in bad faith” requirement.140 However, in Loblaws, transfer of the domain name, despite the fact that no one would Inc. v. Yogeninternational, another single panelist failed to find actually be confused about the source of the website.154 One bad faith use when the registrant merely put up an “under con- court stated that “Respondent’s domain names are sufficiently struction” page at the disputed domain address similar to Complainant’s mark… that Internet search engine (presidentschoicesucks.com).141 Conflicting decisions such as results will list Respondent’s domain names and websites when these show that the UDRP is in fact far from uniform.142 searching Complainant’s mark[]” therefore diverting custom- ers from Complainant’s website.155 2. Defenses The UDRP includes defenses where the registrant has “le- 3. Generic Terms gitimate rights and interests” in the domain name. The UDRP Trademark law does not protect generic words.156 The contemplates three situations that “shall demonstrate your UDRP also provides a defense for domain names registered as rights or legitimate interests[.]”143 Specifically, if any of the a “legitimate noncommercial or fair use of the domain name” following applies with respect to the registrant, a complainant without bad faith.157 More than one panel, however, has con- cannot establish the second element required to prevail in a dis- cluded that a domain name registration for a generic word does pute (e.g., that the registrant has “no rights or legitimate inter- not constitute fair use.158 For example, in J. Crew Interna- ests in respect of the domain name”).144 tional, Inc. v. crew.com,159 the panel ordered the domain name (i) before any notice to you of the dispute, your use “crew.com” transferred to J. Crew, reasoning that its trade- of, or demonstrable preparations to use, the domain mark registration for “CREW” entitled it to the corresponding name or a name corresponding to the domain name domain name registration.160 Unfortunately, other cases have 161 in connection with a bona fide offering of goods or adopted similar reasoning. services; or C. Precedent Problems (ii) you (as an individual, business, or other organi- The UDRP requires each decision to be published on the zation) have been commonly known by the domain Internet. However, the UDRP is silent with respect to the name, even if you have acquired no trademark or precedential value of prior decisions. Rather, the UDRP directs service mark rights; or panels only to make decisions “in accordance with this Policy, (iii) you are making a legitimate noncommercial or these Rules and any rules and principles of law that it deems fair use of the domain name, without intent for com- applicable.”162 The fact-specific nature of the cases and diver- mercial gain to misleadingly divert consumers or to gent applications of existing trademark law, coupled with differ- tarnish the trademark or service mark at issue.145 ences among the individual arbitrators, creates a “maze of inter- national domain name decisions that…collide and conflict.”163 However, despite the unambiguous language, at least one In addition, permitting the use of decisions as precedent decision indicates that arbitration panels may not view the promulgates the problem. A bad decision may be cited over and above as a complete defense.146 Specifically, in Fiber-Shield over as precedent for further bad decisions. A particular deci- Industries, Inc. v. Fiber Shield Ltd.,147 the registrant was in- sion might apply a combination of domestic and foreign legal corporated and doing business in Canada under the name “Fi- principles, or even “invented” law.164 Further, a decision may ber Shield (Toronto) LTD.”148 Although this seems to fit be published in a foreign language, which makes it very diffi- squarely within the second exception cited above, the arbitrator cult to search for potentially “precedential” decisions.165 In- cancelled respondent’s domain name registration for deed, it is possible that the UDRP may mutate “into the same “fibershield.net,” holding that the respondent had “no legitimate litigation framework [it] was intended to circumvent.”166 This interest” in the domain name.149 provides very little predictability for future UDRP participants. Additionally, in Excelentisimo Ayuntamiento de Barcelona v. UDRP decisions are appealable to a court of “mutual juris- Barcelona.com Inc.,150 the arbitration panel essentially negated diction.” However, appealing a bad decision may not be fea- the defense, declaring that some parties have “better rights or sible, particularly if the loser is an individual or entity with lim- more legitimate interests” than others.”151 9 March/April 2002 ited resources. It is also important to note there is no mecha- NetZero for recognition of a series of 20 new TLD-like desig- nism for resolving conflicts between UDRP decisions.167 Thus, nations.178 Users supported by these ISPs will be able to type in under the UDRP, ICANN can prescribe and enforce rules with- alternate endings, including “.sports,” “.xxx,” “.shop,” “.inc.” out the checks and balances of a normal judicial system.168 and “.tech” and be directed to websites registered under these alternate designations.179 However, the designations are not D. Reverse Domain Name Hijacking true TLDs; rather, the company’s software automatically (and Reverse domain name hijacking occurs when a trademark invisibly) adds the extension “.new.net” to each designation, owner attempts to oust a legitimate user from its domain name thereby routing the request to New.net’s own servers for reso- registration in bad faith.169 The J. Crew case described above is lution.180 As a technical matter, New.net is registering fourth- a good example of domain name hijacking; unfortunately, the level domain names within the “.net” TLD.181 respondent’s arguments to this end were rejected by a majority While there is at present no conflict between New.net’s of the panel. However, the dissenting arbitrator recognized the extensions and ICANN’s TLDs, 18 of New.net’s 20 extensions creation of “a dangerous and unauthorized situation whereby conflict with alternate TLDs already in use by alternate ISPs.182 the registration and use of common generic words as domains The domain address would not be exactly the same (i.e., can be prevented by trademark owners wishing to own their whatever.xxx as compared to whatever.xxx.new.net); how- generic trademarks in gross.”170 ever, typing the same request (whatever.xxx) would take a per- Although a substantial number of plaintiffs have alleged son with New.net’s software to the latter address, while every- reverse domain name hijacking, many arbitrators seem unwill- one else would be taken to the former address.183 While this ing to entertain such proposals.171 In fact, several panelists might bring new meaning to the concept of confusion, it is a have declined to find reverse domain name hijacking absent foreseeable result of ICANN’s failure to play fair. clear guidelines from ICANN.172 Endnotes IV. CONCLUSION 1 Trademark owners’ rights have been unjustly expanded to See Jonathan Weinberg, ICANN and the Problem of Legitimacy, 50 DUKE L.J. 17, 187 (2000); Keith Perine, Throwing Rocks at ICANN, THE the detriment of individuals and individual rights. Free expres- STANDARD (Mar. 27, 2000)
10 Michigan Computer Lawyer
cally, the TLDs “.biz” (for businesses), “.info,” “.name” (for individu- (S.D.N.Y. 1999), aff’d sub nom. Name.Space, Inc. v. Network Solu- als), “.pro” (for professionals), “.museum,” “.aero” (for the aeronauti- tions, Inc., 202 F.3d 573 (2d. Cir. 2000). See also ELLEN RONY & PETER cal industry), and “.coop” (for business cooperatives) will be available RONY, THE DOMAIN NAME HANDBOOK (1998) (provides information about sometime this year. See id. more than four dozen domain disputes). 9 See Froomkin, supra note 6, at 39. 40 See Luke A. Walker, ICANN’s Uniform Domain Name Dispute Resolu- 10 See id. at 41-42. tion Policy, 15 BERKELEY TECH. L.J. 289, 295 (2000) [hereinafter 11 See id. at 42. The root file is also called the “root zone” or “legacy root.” Walker]; Oppedahl & Larson, NSI Flawed Domain Name Policy infor- See id. mation page (last modified Dec. 21, 1999) 11 March/April 2002 domnam/TWB19980202S0014>. Further, critics argued that the pro- resenting non-commercial domain name holders. See ICANN’t Believe posed system left too much control with NSI. See id. Finally, others What They’re Doing, NATIONAL JOURNAL’S TECHNOLOGY DAILY (June 15, contended that the proposal failed to consider international interests. 1999) 12 Michigan Computer Lawyer /www.icann.org/udrp/proceedings-stat.htm>. This number does not in- ‘fibershield.net’.”) clude twelve proceedings which were terminated for recommencement. 150 D2000-0505 (Aug. 4, 2000) (Porzio, Arb), available at 13 March/April 2002 Computer Law Section Seminar Reimbursement Program If you’re a member of the Computer Law Section, you may be eligible to receive reim- bursement for the cost of attending a computer law related seminar. If approved, you need only agree to submit a written article summarizing the seminar for publication in the section’s newsletter and make an oral presentation at a section meeting. To apply for reimbursement under this program, at least 4 weeks before the seminar send the following information along with your request for reimbursement to one of the reim- bursement program coordinators, David Syrowik at [email protected] or Kimberly Paulson at [email protected]: 1. Your name, address, phone number, and e-mail address. 2. The name, date, location, and description of the seminar you wish to attend, as well as its cost. Please retain a copy of the seminar’s brochure to submit to the Council for approval. 3. Identification of the portions of the seminar you intend to attend and report on. Within two weeks of your request, the Council of the Computer Law Section will make a determination on your request and notify you of its decision. If your request is approved, reimbursement will be provided upon completion of the written and oral presentations. Determinations as to whether a request is granted, and how many are granted, are within the sole discretion of the Council. 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 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MichiganMichigan Computer Lawyer COMPUTER LAW SECTION SPRING NETWORKING LUNCHEON May 23, 2002 12:00 p.m. Speaker: Thomas Leary, Commissioner, Federal Trade Commission Topic: Federal Regulation of the Internet: The FTC Perspective Learn about current FTC rules and practice. This is an essential update for private practitioners, in-house counsel and all attorneys interested in the Internet. at Livonia Marriott at Laurel Park Place 17100 N. Laurel Park Drive Livonia Registration Students $15 If you require a vegetarian or kosher meal Section Members $25 please indicate below: Nonsection Members $30 " Vegetarian " Kosher P # Enclosed is check # for $ Firm/Organization Please bill my !! Name Card # Address Expiration Date Authorized Signature City State Zip Telephone Fax Please make your check payable to: State Bar of Michigan Mail your check and registration form by May 16th to the State Bar of Michigan, Attention: Becky Hunter, Michael Franck Building, 306 Townsend Street, Lansing, MI 48933-2083. (Payment must be made on or before date of seminar.) Questions, contact Larry Jordan at [email protected] 15 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890122002 Edward F. Langs 123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Writing Award 123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901ESSAY COMPETITION RULES 2123456 12345678901234567890123456789012123456789012345678901234567890121234 12345678901234567890123456789012123456789012345678901234567890121234 12345678901234567890123456789012123456789012345678901234567890121231. The award will be given to the student article, 6. Entries must be typed with margins of 10 and 70, 4 12345678901234567890123456789012123456789012345678901234567890121234 1234567890123456789012345678901212345678901234567890123456789012123which in the opinion of the judges makes the respectively, along with top and bottom margins 4 12345678901234567890123456789012123456789012345678901234567890121234 1234567890123456789012345678901212345678901234567890123456789012123most original and significant contribution to the of no less than one inch each. 4 12345678901234567890123456789012123456789012345678901234567890121234 1234567890123456789012345678901212345678901234567890123456789012123knowledge and understanding of current 7. All entries must contain proper citations, 4 1234567890123456789012345678901212345678901234567890123456789012123computer law issues. The article should 4 1234567890123456789012345678901212345678901234567890123456789012123including footnotes at the end of the entry. 4 1234567890123456789012345678901212345678901234567890123456789012123demonstrate original, creative and useful thought 4 12345678901234567890123456789012123456789012345678901234567890121238. Entry of at least 10 pages is preferred. 4 1234567890123456789012345678901212345678901234567890123456789012123and insight into the law relating to computers. 4 12345678901234567890123456789012123456789012345678901234567890121239. All rights to the entries shall become the 4 12345678901234567890123456789012123456789012345678901234567890121232. The top three papers will receive awards of 4 1234567890123456789012345678901212345678901234567890123456789012123property of the State Bar of Michigan. 4 1234567890123456789012345678901212345678901234567890123456789012123$500, $300 and $200 respectively (in US dollars) 4 123456789012345678901234567890121234567890123456789012345678901212310. The Computer Law Section reserves the right to 4 12345678901234567890123456789012123456789012345678901234567890121233. All entries must be original and must not have 4 1234567890123456789012345678901212345678901234567890123456789012123make editorial changes. 4 1234567890123456789012345678901212345678901234567890123456789012123been submitted to any other contest within the 4 1234567890123456789012345678901212345678901234567890123456789012123last 12 months. 11. The entry must be post-marked by June 30, 4 12345678901234567890123456789012123456789012345678901234567890121234 12345678901234567890123456789012123456789012345678901234567890121232002. 4 12345678901234567890123456789012123456789012345678901234567890121234. All entries must include the submitter’s name(s), 4 1234567890123456789012345678901212345678901234567890123456789012123current address, current telephone number and 12. Entries are to be mailed to: 4 12345678901234567890123456789012123456789012345678901234567890121234 1234567890123456789012345678901212345678901234567890123456789012123college or university attended. David R. Syrowik, Chairman 4 1234567890123456789012345678901212345678901234567890123456789012123Computer Law Section Essay Competition 4 12345678901234567890123456789012123456789012345678901234567890121235. All articles must be typed, double-spaced and 4 1234567890123456789012345678901212345678901234567890123456789012123Brooks & Kushman P.C. 4 1234567890123456789012345678901212345678901234567890123456789012123submitted on letter-size (8½ by 11 inch) plain, 4 12345678901234567890123456789012123456789012345678901234567890121231000 Town Center, 22nd Floor 4 1234567890123456789012345678901212345678901234567890123456789012123white, bond paper (no onion skin). 4 Southfield, Michigan 48075 12345678901234567890123456789012123456789012345678901234567890121234 12345678901234567890123456789012123456789012345678901234567890121234 12345678901234567890123456789012123456789012345678901234567890121234 Computer Law Section Michael Franck Building Presorted First Class Mail State Bar of Michigan U.S. Postage Paid 306 Townsend Street Lansing, MI 48933 Lansing, Michigan 48933 Permit No. 191