Protect Your Brand From Cybersquatting

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  • 8/13/2019 Protect Your Brand From Cybersquatting

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    Protect Your Brand From CybersquattingRight now, we are witnessing what an executive at the Internet Corporation for Assigned Names and

    Numbers (ICANN)called the biggest change to the Internet since its inception. As ICANN begins

    launching new generic top-level domain (TLD) extensions, well no longer be limited to addresses

    ending with .com, .net, and other already familiar TLDs. Well see .clothing, .food, .sport, and many,

    many more. Some people are hailing the new launches as a huge win for consumers, while others

    decry the oncoming juggernaut as asignificant threatto the rights of brand owners. The scope of this

    TLD launch, its reception by the internet community, and, ultimately, its success or failure all remain

    to be seen. What is certain is that businesses, brand owners, and other stakeholders need to be

    informed of these changes and take steps to prepare themselves.

    It might surprise you to hear that, even prior to this current expansion, there were 21 generic TLD

    extensions in place. The domain space was expanded by ICANN in the mid-2000s to include various

    extensions that turned out not to be very popular, such as .jobs and .mobi. But now, ICANN is working

    in partnership with various stakeholders to allow for the creation and delegation of what many say will

    be hundreds of new TLDs. Over the next few years, we can expect TLDs to incorporate generic terms

    like .book, .clothing, and .diamonds.

    Allowing these new TLDs will give many companies and individuals better options for registering their

    marks, names, and other designators as second-level domain names (to the left of the dot). For

    example, imagine that Bob owns a business in Boston called Vintage Clothing. In setting up its

    original website, he was disappointed to find that vintageclothing.com was unavailable and even

    bobsvintageclothing.com was taken, so he settled for bobsvintageofboston.com. Now, he has thechance to register bobsvintage.clothing or even vintage.clothing.

    The problem, of course, with more naming options is more opportunity forcybersquatting.Thus there

    is tension between the benefits of more domain extensions and the threats to trademark owners

    ability to protect their marks from infringement. Heres what you should know about how ICANN

    hopes to prevent and fight cybersquatting and infringement, through the establishment of two rights-

    protection mechanisms:

    The first is a system that enables trademark owners to pre-register domain names under each new

    TLD that correspond to their registered trademarks. The mark owner must first submit proof of its

    rights to an entity ICANN created, the Trademark Clearinghouse (TMCH). Once those rights have

    been verified by the TMCH, the mark owner will be eligible to register domain names that are an

    identical match to its registered mark during sunrise periods periods of at least 30 days before

    registration for a given TLD is opened to the general public. This process is designed to give brand

    owners a key advantage over potential cybersquatters trying to register infringing domains.

    Sending proof of rights to the TMCH provides an additional benefit to brand owners. If someone

    attempts to register a domain name during the general registration period under any new TLD, the

    mark owner will receive notification of the attempt, and the registrant will be shown a cautionary noticethat their registration may violate the brand owners trademark rights. The domain registrant can still

    http://www.icann.org/en/abouthttp://www.icann.org/en/abouthttp://www.icann.org/en/abouthttp://www.zdnet.com/ready-or-not-here-come-the-new-internet-top-level-domain-names-7000025744/http://www.zdnet.com/ready-or-not-here-come-the-new-internet-top-level-domain-names-7000025744/http://www.zdnet.com/ready-or-not-here-come-the-new-internet-top-level-domain-names-7000025744/http://en.wikipedia.org/wiki/Cybersquattinghttp://en.wikipedia.org/wiki/Cybersquattinghttp://en.wikipedia.org/wiki/Cybersquattinghttp://en.wikipedia.org/wiki/Cybersquattinghttp://www.zdnet.com/ready-or-not-here-come-the-new-internet-top-level-domain-names-7000025744/http://www.icann.org/en/about
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    proceed with registering the domain, as there is no automatic blocking. However, they will have been

    put on notice, which could help the brand owners case in a later challenge to that do main registration.

    Brand owners should be aware that there is an annual fee to use the TMCH, and they will also be

    charged a fee set by the registrar to register any domain names during the TLD sunrise periods.

    A second rights-protection mechanism implemented by ICANN is the Uniform Rapid Suspension

    (URS) system, a mechanism through which brand owners can contest the registration and use of a

    domain name that is identical or confusingly similar to its trademark.

    The URS is designed to be a speedy and cost-effective proceeding, with a shorter duration and

    significantly lower filing fees than current domain dispute remedies such as the Uniform Domain-

    Name Dispute-Resolution Policy(UDRP). Although not appropriate for all disputes, the URS can offer

    brand owners some significant advantages when used as part of an overall brand-protection strategy.

    As with the current UDRP, adjudication of a URS dispute is handled by an authorized dispute

    resolution provider. Unlike the UDRP, however, a successful URS complaint will result only in the

    challenged domain names suspension, termination of the registrants control over the domain, and

    the disabling of any website or other services or content associated with the domain name. The URS

    will not provide for transfer of the disputed domain name to the trademark owner, and the brand

    owner will not be permitted to use the domain name while it remains in suspension during the duration

    of its registration term. If the brand owner wants to take ownership of and use the disputed domain, it

    should instead pursue a UDRP proceeding or other legal action. The essence of the URS, which is

    designed for clear-cut cases of cybersquatting where there is no genuine dispute over the facts, is inits speed and simplicity.

    In addition to the URS, trademark owners can also utilize the currently available UDRP and litigation

    in federal court under the Anti-Cybersquatting Consumer Protection Act to resolve domain disputes.

    Each of these available options provides for somewhat different relief, and the choice of which to

    select will depend on a variety of factors. Brand owners should consult with counsel to discuss which

    may be the best option for the particular situation.

    The expansion of the domain name space will create new challenges, but it also presents positive

    opportunities for businesses and individuals to stake new ground online. Provided that you, as a

    brand owner, are aware of your options, you should be able to navigate the expansion to your

    advantage.

    http://en.wikipedia.org/wiki/UDRPhttp://en.wikipedia.org/wiki/UDRPhttp://en.wikipedia.org/wiki/UDRPhttp://en.wikipedia.org/wiki/UDRPhttp://en.wikipedia.org/wiki/UDRPhttp://en.wikipedia.org/wiki/UDRP