Allegations of cybersquatting by trademark holders continued to rise in 2008, with a record 2,329 complaints filed under the Uniform Domain Name Dispute Resolution Policy (UDRP), a quick and cost-effective dispute resolution procedure administered by the World Intellectual Property Organization (WIPO) Arbitration and Mediation Center.
According to WIPO, this represented an 8% increase over 2007 in the number of generic and country code Top-Level Domain (gTLDs and ccTLDs) disputes handled and brings the total number of WIPO cases filed under the UDRP since it was launched ten years ago to over 14,000.
To improve efficiency and respond to growing demand, WIPO proposed in December 2008 an “eUDRP Initiative” to render the UDRP paperless.
The increasing number of cases filed with the Center is occurring at a time when the Internet Corporation for Assigned Names and Numbers (ICANN), responsible for managing the generic top level domain space (gTLD) is preparing to launch large numbers of new gTLDs.
ICANN’s current expectation is to begin accepting applications by late 2009. This is a watershed moment in the development of the Domain Name System (DNS), and is of genuine concern for trademark holders.
“The creation of an unknowable and potentially vast number of new gTLDs raises significant issues for rights holders, as well as Internet users generally,” WIPO Director General Francis Gurry said.
“Cybersquatting remains a serious issue for trademark holders. Supported especially by registrar and registry stakeholders, the sale and broad expansion of new top level domains in the open market, if not properly managed, will provide abundant opportunities for cybersquatters to seize old ground in new domains,” Gurry added.
In this regard, he recalled that one of the recommendations of the Report of the First WIPO Domain Name Process which also gave rise to the UDRP was that any new gTLDs should be introduced and monitored in a controlled manner.
“If ICANN’s considerations lead it to proceed with the broad introduction of new gTLDs, trademark owners as well as consumers will expect a careful framework to be put into place to address top level operators permitting or undertaking abusive registration practices,” he continued.
To this end, WIPO has been working with ICANN in the development of pre- and post-delegation procedures and standards for the new gTLDs, insofar as they relate to Intellectual Property,” Gurry commented.
“Failure to implement such safeguards carries the risk of stakeholders in the Domain Name System becoming involved in protracted court litigation,” he pointed out.
The Director General stressed that this is not just an issue of protecting rights of trademark holders under existing law, but also of “the reliability of the addressing system of the Internet in matching interested parties with authentic subjects,” noting that WIPO looks forward to continuing to assist ICANN and its stakeholders in the policy work in this regard.
SOURCE:AGIPNEWS