Your Source for Domain Dispute News and Information July 16, 2008, Vol. 9 No. 07
 

Welcome to Domain News, a complimentary news service of the National Arbitration Forum. The National Arbitration Forum is one of the world's largest neutral administrators of arbitration services and one of three ICANN-approved providers. We invite you to visit our website at www.adrforum.com.

 

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In This Issue

 

 

Apple Inc. v. Bahktina

The Final Frontier: ICANN’s gTLD Expansion May Provide New Opportunities
 

ICANN briefly loses control of its own domain names
 

Internet Service Providers Get New Battle Plan in the War on Spam

 

 

 

Recent Decisions

 

 

Head Technology GmBH v. Texas International Property Association

 

Complainant, Head Technology GmBH., brought a UDRP claim against Respondent, Texas International Property Associates, for the <headsportswear.com> domain name.  Complainant is a sportswear company that operates under its HEAD mark.  Respondent argued that it was using two generic, descriptive words and is entitled to do so because it registered the disputed domain name first.  The Panel found Respondent’s competing use of the disputed domain name did not give Respondent rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii).  Additionally, the Panel found the disputed domain name was confusingly similar to Complainant’s mark pursuant to Policy ¶ 4(a)(i) and Respondent had registered and used the disputed domain name in bad faith pursuant to Policy ¶ 4(a)(iii).  Therefore, the Panel found the requisite elements of the UDRP were satisfied and transferred the disputed domain name to Complainant.  Head Tech. GmbH v. Tex. Int’l Prop. Assocs. – NA NA, FA 1172984 (Nat. Arb. Forum June 2, 2008).

 

Gettysburg Flag Works, Inc. v. Precision Marketing Solutions, Inc. and Jeffrey Reynolds

 

Complainant, Gettysburg Flag Works, brought a UDRP claim against Respondent, Precision Marketing Solutions, Inc. and Reynolds, for the <gettysburgflags.com> domain name.  The Panel found Policy ¶ 4(a)(i) was met because Complainant had established common law rights in its GETTYSBURG FLAG mark and the disputed domain name was confusingly similar to Complainant’s mark.  Complainant and Respondent both are in the business of selling flags.  Respondent argued it was unaware of Complainant’s business and was using the disputed domain name which was comprised of generic terms to sell its own flags.  The Panel was not persuaded by these arguments and found Respondent lacked rights and legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii) and Respondent acted in bad faith pursuant to Policy ¶ 4(a)(iii).  Therefore, the Panel transferred the disputed domain name to Complainant.  Gettysburg Flag Works, Inc. v. Precision Mktg. Solutions, Inc. & Reynolds, FA 1179369 (Nat. Arb. Forum June 10, 2008).

 

TOTO USA Inc. v. Owida

 

Complainant, TOTO USA Inc., brought a UDRP complaint against Respondent, Akram Owida, for the <totology.com> and <totology.net> domain names.  Complainant alleged that the disputed domain names were confusingly similar to its TOTO mark.  Respondent argued that the TOTO mark was a generic term referring to lottery and betting, and that it was in the business of developing lottery and betting systems.  The Panel concluded that the disputed domain names were confusingly similar to Complainant’s mark pursuant to Policy ¶ 4(a)(i).  Prior to contact between Complainant and Respondent, the disputed domain names were not being actively used.  However, when Complainant contacted Respondent inquiring into the possibility of a transfer, the disputed domain names began to resolve to adult-oriented sites and were offered for sale.  The Panel found such use does not establish rights or legitimate interests pursuant to Policy ¶ 4(a)(ii).  And finally, the timing of the switch to adult oriented material, along with Respondent’s offer to sell, were cited by the Panel to establish that the disputed domain names were registered and being used in bad faith pursuant to Policy ¶ 4(a)(iii).  The Panel transferred the disputed domain names from Respondent to Complainant.  TOTO USA Inc. v. Owida, FA 1178653 (Nat. Arb. Forum June 10, 2008). 

 

Sun Studio Entertainment, Inc. v. Memphis Recording Services

 

Complainant, Sun Studio Entertainment, Inc., brought a UDRP claim against Respondent, Memphis Recording Services, for the <memphisrecordingservice.com> domain name.  In the 1960’s, Elvis Presley and other well-known artists recorded in Memphis at the original Memphis Recording Studio.  Since then, the original studio has closed and Complainant now owns the building where the former Memphis Recording Service once operated.  Respondent is located in England and registered the disputed domain name around the time it obtained a trademark registration from the European Union for its MEMPHIS RECORDING SERVICES mark.  Respondent’s disputed domain name resolved to a website which highlighted the history surrounding the former studio.  The Panel also found Respondent was engaged in a legitimate business of selling media products.  Therefore, the Panel found Respondent had rights and legitimate interests in the dispute domain name pursuant to Policy ¶ 4(a)(ii).  Based on this analysis, the Panel declined to transfer the disputed domain name.  Sun Studio Entm’t., Inc. v. Memphis Recording Serv., FA 1189842 (Nat. Arb. Forum June 19, 2008).

 

Apple Inc. v. Nelia Bahktina

 

Complainant, Apple Inc., brought a UDRP complaint against Respondent, Nelia Bahktina, for the <ituneslatino.com> domain name.  The disputed domain name was registered well after Complainant had obtained exclusive rights in the ITUNES mark.  Respondent argued that the <ituneslatino.com> domain name was registered for the purpose of selling contact lens and sunglasses online.   Regardless, the Panel found that the disputed domain name was confusingly similar to Complainant’s ITUNES mark pursuant to Policy ¶ 4(a)(i).  At the time of the Complaint the <ituneslatino.com> domain name did not resolve to anything.  The Panel concluded that this established Respondent’s lack of rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii).  Finally, Respondent expressed that he was “willing” to “assign his URL,” if a “lucrative proposition” by a “billion dollar company” came along.  Under these circumstances, the Panel found that Respondent had registered and was using the disputed domain name in bad faith pursuant to Policy ¶ 4(a)(iii).  Accordingly, the Panel transferred the <ituneslatino.com> domain name from Respondent to Complainant.  Apple Inc. v. Bahktina, FA 1178697 (Nat. Arb. Forum June 2, 2008).

 

 

 

E-PRACTICE

 

 

The Final Frontier: ICANN’s gTLD Expansion May Provide New Opportunities

 

Domain name registrants have long desired greater flexibility in consumer choice and market differentiation, especially beyond the commonly known generic top-level domains (“gTLDs”) of “.com,” “.net,” and “.org.”  As such, gTLD expansion has been in development for over three years, headed by the Generic Names Supporting Organization (“GNSO”), which is a subcommittee of the Internet Corporation for Assigned Names and Numbers (“ICANN”).  On June 26, 2008, ICANN affirmatively voted to expand the array of gTLDs that can be registered.  Considerable debate has surfaced concerning the underlying advantages and disadvantages of the proposed implementation, which will likely affect businesses and other entities operating on the Internet.

 

In 2005, the GNSO began exploring the technological and other logistical issues that would be associated with allowing the expansion of gTLDs.  The three main categories of issues included preservation of public order and morality, efficiency of the application process, and trademark protection.  The GNSO addressed these concerns by drafting numerous recommendations that the board of ICANN subsequently approved in its June 26, 2008 vote.

 

ICANN addressed initial concerns regarding implementation specifications, including content regulation, trademark protection, and the outline of the actual process.  To this end, ICANN drafted a flowchart detailing the proposed registration process, and has stated its hope to begin accepting applications for new gTLDs by the second quarter of 2009.  Moreover, it plans to utilize an objection-based procedure administered through an international arbitration body to deal with proposed offensive and/or trademark-infringing gTLDs.  One notable scenario involves entities with concurrent rights in an identical word trademarks that compete to register a corresponding gTLD.  Under the proposed implementation, this dispute would be resolved through an auction.

 

ICANN’s contemplation and approval of this expansion has generated substantial discussion in the Internet community.  One of the more prevalent expressed benefits is the potential to reduce cybersquatting given the cost of registering a new gTLD, which could potentially cost up to US $100,000.00 each.  Another issue concerns public morality.  Some believe that a proposed adult-oriented gTLD, such as “.xxx,” would remove such content spread across current gTLDs to one location on the Internet, potentially reducing the difficulties in blocking these websites.  

 

Opponents of the proposed expansion assert that while the cost may render cybersquatting more prohibitive, the expenses involved would make it more difficult for smaller businesses or entities to employ a defensive strategy with regards to trademark infringement.  If there are more gTLDs, the cost of preemptively registering domain names reflecting an entity’s marks to reduce infringement will increase substantially.  Regardless of an entity’s successful registration of its own gTLD, trademark owners will still be required to monitor domain names that potentially infringe their marks in current gTLDs as well as any newly registered gTLDs.  Many argue that the objection-based mechanism will not be used objectively, and that ICANN will engage in censorship.

 

Going forward, the Internet community will need to evaluate the benefits and opportunity costs of registering their own gTLDs as that opportunity becomes available through ICANN.  All entities interested in their own gTLD are encouraged to monitor ICANN’s website for future additional information.

 

 

 

In The News

 

 

ICANN briefly loses control of its own domain names

Australian IT News, July 4, 2008:  After an Internet registration company it oversees was fooled into wrongfully transferring the domain names, the Internet Corporation for Assigned Names and Numbers (ICANN) lost control of two previously held domain names for a short time.  The two domain names were <icann.com> and <iana.com> (for the ICANN subdivision known as the Internet Assigned Numbers Authority); the names were restored to ICANN within twenty minutes, but because many internet directories retain information for a day or two, some visitors might have been redirected to an unauthorized site.  ICANN has implemented new security measures and is reviewing other security procedures to prevent such attacks in the future.  Link to Full Story

 

Yahoo Adds New Domains

YahooNews.com, June 19, 2008:  Yahoo is expanding the e-mail addresses that the organization provides by creating two new domain names, “ymail” and “rocketmail.”  The development will offer Internet users who are frustrated with the limited e-mail address option left open on Yahoo another chance to register an email address with Yahoo. This marks the first time in Yahoo’s existence that they will be offering e-mail addresses that do not contain the YAHOO mark.  Yahoo has experienced a lower growth-rate in e-mail addresses due to Google’s entrance into the e-mail market.  In fact, Google’s “gmail” domain name has been registered by over 30 million users within the past year.  Yahoo’s hope is to remain a leader in e-mail registrants.  Link to Full Story

 

Internet Service Providers Get New Battle Plan in the War on Spam

BBC News, June 27, 2008: The Messaging Anti-Abuse Working Group (MAAWG), a well-respected anti-spam watchdog group, has published new guidelines for how internet service providers (ISPs) should combat the use of their services for spamming schemes.  MAAWG has recommended that ISPs use separate servers for received and forwarded e-mails, and that they block the use of the port known as port 25, through which most spam travels.  Experts do admit, however, that even if the majority of ISPs adopt these measures, it is unlikely that Internet users will see a notable reduction in spam in the near future.  Link to Full Story

 

ICANN’s Domain Tasting Solution is a Partial Success

DomainNews.com, June 27, 2008:  The Coalition Against Domain Name Abuse (“CADNA”), a coalition comprised of 11 globally recognized brand-name companies announced that ICANN’s proposal to reduce “Domain Tasting” was a partial success.  However, CADNA emphasized that even though the new proposal was partially successful, it would not eliminate “Domain Tasting,” which is CADNA’s final goal.  "Domain Tasting" is the process by which registrants obtain a domain name and track its traffic over the course of the five-day Add Grace Period (“AGP”). If it does not yield enough traffic to make it immediately profitable, the registrant drops the domain name within five days in order to get a refund of the 20-cent registration fee.  ICANN’s proposals include reducing or even eliminating the refund.  However, organizations that profit from massive domain name registrations have made it difficult for ICANN to completely eliminate “Domain Tasting.”  Link to Full Story

 

 

 

Upcoming events

 

 

August 7-12, 2008

ABA Annual Meeting
New York City, NY

October 23-35, 2008

AIPLA Annual Meeting

Washington, D.C.
November 2-7, 2008

ICANN Meeting

Cairo, Egypt

 

 

Let the National Arbitration Forum know of your upcoming events for listing in Domain News. Send event listing information to: domain-news@adrforum.com. Please type "DOMAIN NEWS EVENTS" in the subject header.

 

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Note: The information found in this newsletter is designed to provide accurate and authoritative information regarding the subject covered, but is not intended as legal advice.