Trademark Pro

Domain Hijacking

Domain hijacking is also called RDNH or reverse domain name hijacking

Domain hijacking happens when someone files a UDRP complaint or a court action in bad faith to get a domain name from its registered owner. A domain hijacking complaint is often called a plan B complaint. A classic plan B complaint to secure a domain name happens after the complainant was unable or unwilling to negotiate the purchase of a domain name.

Plan B Domain Name Cases

Plan B (noun): a strategy or plan to be implemented if the original one proves impracticable or unsuccessful.
http://www.dictionary.com/browse/plan-b?s=t

 wrote, When a Domain Name Dispute is ‘Plan B’:

The label appears to have first been used in the context of domain name disputes in two decisions from 2007, one involving <michelman.com>, the other <giggles.com> and <giggles.org>.

In the <michelman.com> case, the panel described Plan B like this: “Complainant commenced this proceeding as an alternative (‘Plan B’) to acquire the disputed domain name after being rebuffed in the anonymous auction process.”

Through the years, the “Plan B” terminology has been invoked in about 50 cases, nearly all of which resulted in decisions allowing the current registrants to keep the disputed domain names.

The panel in the <queen.com> proceeding called it “a classic ‘Plan B’ case where a party, having been frustrated in its negotiations to buy a domain name, resorts to the ultimate option of a highly contrived and artificial claim not supported by any evidence or the plain wording of the UDRP.”

https://giga.law/blog/2017/8/2/domain-name-dispute-plan-b

Strategies for Avoiding or Dealing with a UDRP:

  1. Before you get hit with a UDRP, build out a website on your domain name and register a trademark that matches your domain name.
  2. Respond to a UDRP with affidavits and a copy of your trademark registration. A domain hijacking will usually happen if you don’t respond to a UDRP complaint.
  3. Hire a lawyer who is a domain name specialist right away, to help ensure that you file a winning response along with sworn evidence to support your assertions. Visit WIPO’s website for UDRP Model Response and Filing Guidelines.
  4. If you get served with a UDRP complaint via email, you have 20 days to respond. During those 20 days, you may email the dispute resolution provider handling your complaint to ask for an extra 5-day extension, or more if you have extra-ordinary circumstances. Sometimes a panelist will review and accept your response, even if it is a little late, but don’t bank on it.
  5. How a UDRP is decided:

Paragraph 15(a) of the Rules instructs this Panel to “decide a complaint on the basis of the statements and documents submitted in accordance with the Policy, these Rules and any rules and principles of law that it deems applicable.”

Paragraph 4(a) of the Policy requires that Complainant must prove each of the following three elements to obtain an order that a domain name should be cancelled or transferred:

(1)      the domain name registered by Respondent is identical or confusingly similar to a trademark or service mark in which Complainant has rights; and

(2)      Respondent has no rights or legitimate interests in respect of the domain name; and

(3)      the domain name has been registered and is being used in bad faith.

In some clear cases of domain hijacking:

Lack of Bad Faith in Domain Name Registration

Domain names matching trademarks that not distinctive at the time the domain name registration could not have been registered in bad faith, regardless how subsequently they may have been used: novelist.com RDNH and platterz.com RDNH requested and granted in both cases. If the Complainant can’t prove the element of Bad Faith in registering a domain name, the UDRP should be denied and and an RDNH should be granted under the WIPO UDRP Overview 3.0 standard.

novelist.com RDNH

platterz.com RDNH

Reverse Domain Name Hijacking

Use of a Domain Name in a UDRP

A UDRP filed by a Complainant whose trademark became distinctive after a domain name was registered should be denied.
Asserting marks not distinctive at the time of domain name registration is an attempt to hijack a domain name. How the domain name subsequently may have been used is irrelevant under the UDRP and the ACPA. By definition, domain names registered before marks became distinctive could not have been made in bad faith.
Note that while the UDRP provides a defense if the domain name registrant has made demonstrable preparations to use the domain name in a bona fide offering of goods or services, the legislation only provides a defense if there is prior use – not simply preparation to use.
If domain name owner asks a UDRP panel to rule that the Complaint represents an attempt at Reverse Domain Name Hijacking (“RDNH”) its domain name, they should do so. Domain Name Hijacking is defined in the Definitions section of the Rules as “using the Policy in bad faith to attempt to deprive a registered domain-name holder of a domain name”. In the WIPO Overview 3.0 released in 2017, the editors now acknowledge that “following some early cases to the contrary, panels have more recently clarified that, for an RDNH finding to be made, it is not necessary for a respondent to seek an RDNH finding or prove the presence of conduct constituting RDNH” (Paragraph 4.16)
Paragraph 15(e) of the Rules provides as follows:

If after considering the submissions the Panel finds that the complaint was brought in bad faith, for example in an attempt at Reverse Domain Name Hijacking or was brought primarily to harass the domain-name holder, the Panel shall declare in its decision that the complaint was brought in bad faith and constitutes an abuse of the administrative proceeding.

https://www.icann.org/resources/pages/udrp-rules-2015-03-11-en

Other circumstances for finding RDNH articulated by panels for finding RDNH include:

(i) facts which demonstrate that the complainant knew it could not succeed as to any of the required three elements – such as the complainant’s lack of relevant trademark rights, clear knowledge of respondent rights or legitimate interests, or clear knowledge of a lack of respondent bad faith (see generally section 3.8) such as registration of the disputed domain name well before the complainant acquired trademark rights,

(ii) facts which demonstrate that the complainant clearly ought to have known it could not succeed under any fair interpretation of facts reasonably available prior to the filing of the complaint, including relevant facts on the website at the disputed domain name or readily available public sources such as the WhoIs database,

(iii) unreasonably ignoring established Policy precedent notably as captured in this WIPO Overview – except in limited circumstances which prima facie justify advancing an alternative legal argument,

(iv) the provision of false evidence, or otherwise attempting to mislead the panel,

(v) the provision of intentionally incomplete material evidence – often clarified by the respondent,

(vi) the complainant’s failure to disclose that a case is a UDRP refiling,

(vii) filing the complaint after an unsuccessful attempt to acquire the disputed domain name from the respondent without a plausible legal basis,

(viii) basing a complaint on only the barest of allegations without any supporting evidence.

http://www.wipo.int/amc/en/domains/search/overview3.0/#item416

Does getting a trademark, that matches a domain name, increase my negotiation power when attempting to buy that domain?

Question: I’d like to buy a domain name from its current owner, but their asking price is somewhat high (low-mid 5 digits figure) and they don’t want to negotiate. I was wondering if getting a trademark in the domain name’s country (which I have to get anyway) would increase my price-negotiating power.

Answer: No, filing a UDRP based on a trademark obtained after a matching domain name was originally registered will cost you a lot of money.

A US judge may award $100,000+ for the reverse domain name hijacking claim in federal court under the Anti-Cybersquatting Piracy Act (ACPA) Lanham Act S. 43(d), 15 U.S.C. S.1125(d).

In the Walter v. Ville de Paris Memorandum in support of Default Judgment, filed in the TX SD US Court, the Plaintiff argued the following:

By way of reference, 15 U.S.C. § 1117(d) authorizes, in cases “involving a violation
of section 1125,” an election of damages in the courts discretion of “not less than $1,000 and not
more than $100,000 per domain name, as the court considers just.”  This is a case “involving” a
violation of 1125(d)(1) in that Mr. Walter is seeking a determination that it was not violated.

A CDRP panel may award $5000 as a reverse domain name hijacking penalty – RDNH, if the CDRP complaint is over a .ca domain.

Bad Faith Complaints

WIPO panels have found that the onus of proving complainant bad faith in such cases is generally on the respondent. The mere lack of success of a complaint is not itself sufficient reason to make a finding of Reverse Domain Name Hijacking.

The ins and outs of Cybersquatting UDRP cases and reverse domain name hijacking

Learn about the ins and outs of Cybersquatting UDRP cases and reverse domain name hijacking in this DNW interview with Jason Schaeffer:

How can you defend yourself against claims of cybersquatting, and what’s Reverse Domain Name Hijacking? Jason Schaeffer and his firm ESQwire.com have won lots of reverse domain name hijacking cases on behalf of clients, and he gives the details on the DNW show.
Jason Schaeffer explains that a generic domain name such as tirestore.com and you are selling tires, then you have a
Legitimate interests under section 4(a)(2):
 

Establishing Reverse Domain Name Hijacking

To establish Reverse Domain Name Hijacking, a panelist would typically need to find that the complaint was brought in bad faith and constitutes an abuse of the administrative proceeding.

Examples of indicia of a complainant’s bad faith:

Evidence of harassment or similar conduct by the complainant in the face of such knowledge (e.g., in previously brought proceedings found by competent authorities to be groundless, or through repeated cease and desist communications) may also constitute a basis for a finding of abuse of process against a complainant filing under the UDRP in such circumstances.

WIPO panels have found Reverse Domain Name Hijacking in circumstances including where:

The fact of default by a respondent does not necessarily prevent a finding of Reverse Domain Name Hijacking in appropriate cases, and WIPO panels have on occasion entered such findings on their own initiative, especially where the complainant has intentionally attempted to mislead the panel by omitting material evidence.

WIPO panels have declined to find Reverse Domain Name Hijacking in circumstances including where:

Domain Hijacking Relevant decisions:

airzone.com: Corporacion Empresarial Altra S.L. v. Telepathy, Inc., WIPO Case No. D2017-0178, Denial (Domain hijacking: RDNH found)

carsales.com.au Limited v. Alton L. Flanders, WIPO Case No. D2004-0047, <carsales.com>, Denial (Domain hijacking: RDNH found)
hakoba.com RDNH:Hakoba Lifestyle Limited v. Mukesh Shah, WIPO Case No. D2017-0675 (Domain hijacking: RDNH found)
Rudy Rojas v. Gary Davis, WIPO Case No. D2004-1081, <nativestyles.net> inter alia, Denial (RDNH denied)
Goway Travel Limited v. Tourism Australia
, WIPO Case No. D2006-0344, <downunder.travel>, Denial (Domain hijacking: RDNH found)
Proto Software, Inc. v. Vertical Axis, Inc/PROTO.COM
, WIPO Case No. D2006-0905, <proto.com>, Denial (Domain hijacking: RDNH found)
Mondial Assistance S.A.S. v. Compana LLC
, WIPO Case No. D2007-0965, <mondial.com>, Denial (RDNH denied)
Grasso’s Koninklijke Machinefabrieken N.V., currently acting as Royal GEA Grasso Holding N.V. v. Tucows.com Co
, WIPO Case No. D2009-0115, <grasso.com>, Denial (RDNH denied)
Compart AG v. Compart.com / Vertical Axis, Inc
., WIPO Case No. D2009-0462, <compart.com>, Denial (RDNH denied)
Cheung Kong (Holdings) Limited and Chueng Kong Property Development Limited v. Netego DotCom
, WIPO Case No. D2009-0540, <長江.com>, Denial (Domain hijacking: RDNH found)
Ville de Paris v. Salient Properties LLC
, WIPO Case No. D2009-1279, <wifiparis.com>, Denial (RDNH denied)
M. Corentin Benoit Thiercelin v. CyberDeal, Inc.
, WIPO Case No. D2010-0941, <virtualexpo.com>, Denial (Domain hijacking: RDNH found)
X6D Limited v. Telepathy, Inc., WIPO Case No. D2010-1519 <xpand.com>, Denial (Domain hijacking: RDNH found)

Futureworld Consultancy (Pty) Limited v. Online Advice, WIPO Case No. D2003-0297;
Kur- und Verkehrsverein St. Moritz v. Domain Finance Ltd., WIPO Case No. D2004-0158).

Some notable UDRP decisions finding domain hijacking are:

Buying and selling domain names is not per se bad faith

alsa.com WIPO UDRP Case No. D2005-0282

Domain name is the Geographic place in the world:

Develi.com WIPO UDRP Case No. D2014-1367

In all of these circumstances, the Panel finds that on balance the Complaint was brought in bad faith and constitutes an abuse of the administrative proceeding.

Domain name is a generic term:

dataminer.com WIPO UDRP Case No. D2016-1667

Soda LLC v. SIMPLEDOLLAR.COM WIPO Case No. D2016-0038

Domain name is a given name and a surname

bernette.com WIPO UDRP Case No. D2016-1811
The Panel considers that the Complainant has been guilty of RDNH for the following reasons:

1. The Complainant has failed by a large margin. In the Panel’s opinion, the Complainant knew or at least should have known that it could not prove one of the essential UDRP elements. For example, it is a well-settled Policy precedent that some proof of targeting (i.e., using the disputed domain name to take advantage of the Complainant’s marks in whatever manner) is required to establish bad faith. As explained above, there was no such evidence in this case. Furthermore, the Complainant relied heavily on the mere fact that the Respondent trafficked in domain names, whereas it is again well-established under the Policy that such activity of itself may well be entirely legitimate, depending on the circumstances.

2. The Complaint lacks candour. In particular:

a. The Complainant relies on a “proposed sale price of US$ 29,000” and exhibits various broker communications in August 2016 putting forward this price. But its submissions are misleading because it nowhere provides details of the sales enquiries on behalf of (though not in the name of) the Complainant which prompted such offers or even mentions that the Respondent’s offers were solicited. Nor does the Complainant refer to its earlier offers in 2010 or 2015. The Panel would add that the Respondent’s account of the relevant purchase enquiry history is also somewhat incomplete.

b. The Complainant’s description of the Respondent’s business structure is highly inaccurate. The Complainant is represented by counsel, who ought to know better and who is under an obligation imposed by paragraph 3(b)(xiii) of the Rules to undertake at least minimal due diligence before filing a complaint. The Panel sees no excuse for not recognising Frank Schilling and his businesses, which have been involved in many previous UDRP cases or, if not familiar with them, doing a basic Internet search.

3. In the Panel’s view, this is a classic “Plan B” case, i.e., using the Policy after failing in the marketplace to acquire the disputed domain name. This stratagem has been described in several earlier UDRP cases as “a highly improper purpose” and it has contributed to findings of RDNH. See, e.g., Patricks Universal Export Pty Ltd. v. David Greenblatt, WIPO Case No. D2016-0653 (holding “Plan B” approach as a basis for a finding of RDNH) and Nova Holdings Limited, Nova International Limited, and G.R. Events Limited v. Manheim Equities, Inc. and Product Reports, Inc., WIPO Case No. D2015-0202 (use of UDRP proceeding to increase bargaining leverage in sale negotiations called “a highly improper purpose”).

4. Many of the above points were specifically drawn to the Complainant’s attention in the Respondent’s pre-action letter, mentioned in section 4 above. This should have given the Complainant serious pause for thought but it ploughed on regardless.

Domain name was registered before the Complainant had Trademark Rights

croma.com WIPO UDRP Case No. D2013-1360: Infiniti Retail Limited v. John Cromwell / Croma Web Services

The UDRP Is Not a Platform For Failed Negotiations

sha.com WIPO UDRP Case No. D2012-0997: Albir Hills Resort, S.A. v. Telepathy, Inc

tobam.com WIPO UDRP Case No. D2016-1990

December 2017 RDNH Cases

A National Arbitration Forum panelist has found Kittrich Corporation, owner of a line of pest control products called EcoSmart, to have engaged in reverse domain namehijacking over the domain name Get Rid of Bugs, Kill Bugs, Hawaii Pest Control with Natural Bug Treatment.

While the complainant has been using the term EcoSmart for its products for a long time, the respondent’s predecessor-in-interest has been using it for longer for its pest control business in Hawaii.

The panelist ruled that the Hawaiin business had rights or legitimate interests in the domain name based on its long-running use of the name for its own pest control services.

Panelist Dennis A. Foster also determined that Kittrich Corporation was guilty of reverse domain name hijacking for filing the case. As it turns out, the domain owner’s lawyer had previous correspondence with EcoSmart about trademarks and had offered to prove its rights in the mark pre-dating the complainant’s. It’s a bit more complicated than that, however. That correspondence occurred a month before Kittrich acquired EcoSmart, so it’s possible that it wasn’t aware of the communications.

Informa Business Information, a company that publishes information about the biopharma industry called The Pink Sheet, has been found to have engaged in reverse domain name hijacking for the domain name pinksheet .com.

Informa Business Information guilty of reverse domain name hijacking – Domain Name Wire | Domain Name News & Website Stuff

HugeDomains has successfully defended its domain name VirginLiving .com against an attack by Virgin Enterprises, and Virgin has been found guilty of reverse domain name hijacking in the case.

Stobbs IP represented Informa Business Information for pinksheet .com and Virgin Enterprises for VirginLiving .com.

Inspectorate America Corporation has been found to have engaged in reverse domain name hijacking over the domain name loams .com. The company has a software program called LOAMS, which stands for Lube Oil Analysis Management System.

The domain owner, Netcorp, said it registered the domain name because it’s a typo of “loans”. Netcorp owns several other typos of dictionary words.

Some older RDNH cases are:

<wallstreet.com WIPO UDRP>
 
Please return for more updates.
 
These points of authority do not necessarily reflect the views of the writer. This blog is not legal advice. These posts are just notes.

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