About Seven Years Too Late

Ritchey Design, Inc., the complainant in this week’s UDRP decision, sells bicycle components under the RITCHEY brand and holds registrations for the RITCHEY trademark in the US, Canada, and the European Community for bicycle components.Bike Parts_shutterstock_116546443

The domain name in dispute is ritchey.com, which was originally registered in 1996 but was only acquired by the respondent in 2007. Prior to the respondent’s ownership of the domain name, its website featured pay-per-click (PPC) links to the complainant and ads to sites of its competitors; however, after the respondent acquired the domain name, those PPC links were removed. Also, the respondent has a history of having “been involved in multiple UDRP proceedings alleging typosquatting”, and the domain name is up for sale.

The panel issued a request for the respondent to disclose any relationship or connection with the original owner of the domain name. The respondent denied any connection, and the panel did not accept the complainant’s argument that the respondent may be lying since it and the prior owner list addresses in Vancouver.

Ultimately, the panel stuck to UDRP precedent that says the facts must be examined as of the time the respondent acquired the domain unless there’s proof that it’s the same as or related to a prior owner of the domain.

The decision states “There are other businesses out there using the “Ritchey” name and many people called “Ritchey” who might be interested in purchasing <ritchey.com> if they started a business. Upon examining the evidence in this case, unfortunately, the Complainant has failed to show that on the balance of probabilities that it was a Ritchey business in the contemplation of the Respondent at the time of the registration or that the Respondent has any link with the bad faith use made of the Domain Name showing knowledge of the RITCHEY trade mark for bicycles before it was acquired by the Respondent.

Had the complaint been brought before 2007 when the PPC site was clearly related to the complainant and its competitors, this would have been a very different outcome, as it would have been clear that the domain owner, at that time, did intend the domain to relate to the complainant and not some other Ritchey business or family name.

Just as they would to avoid a laches (delay) defense, brand owners should act quickly when they discover a clearly infringing domain since there’s no guarantee that the facts of the situation won’t change if they wait too long.

Row, Row, Row Your Domain

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LYTRO digital camera maker in California goes after a respondent in Australia who claims he registered lytro.com.au for use in his business of manufacturing carbon fibre equipment for competitive rowing. The complainant first contacted the respondent to try and buy the domain name and there was some back-and-forth during which the respondent said it was just a few months away from the launch of its website but, if the complainant “were to make a motivating offer to acquire the domain” it might consider the matter. The complainant replied with more claims of its trademark rights and then asked the respondent to suggest a price. Eventually the respondent stopped replying since it wasn’t interested in selling. In its argument, the complainant pointed out that the respondent said it was 6 months away from launch but 16 months have now passed and the site still hasn’t launched.

The panelist found that the domain name is confusingly similar to the complainant’s LYTRO mark and, since its site still hasn’t launched and it hasn’t provided evidence to support its ongoing intention to launch, the respondent has no rights or legitimate interest in the domain name. However, he then found that the respondent didn’t register the domain name in bad faith since it really did intend to use the domain name for its rowing equipment business (the term LYTRO is supposed to be a play on the words “light” (“lyt”) and “row” (“ro”).

This is a very close case and I’m hard-pressed to say how the complainant’s counsel could have handled it better. Perhaps it could have further investigated the respondent and its business and then advised its client that a negotiated purchase would be the pragmatic way to go. Of course, investigations cost money and maybe that amount could have been added to a purchase offer. Ultimately, this may have been a case of the brand owner wanting to roll the UDRP dice to try and get the domain name at a lower cost than any price it could have negotiated with the respondent.

Blocked Strings Now Free to Launch

 

shutterstock_130365155New gTLD registries previously on hold because of potential name collision problems are free to go live now that the New gTLD Program Committee (NGPC) has approved a framework to guide them.

The NGPC Name Collision Occurrence Management Framework also frees up scores of names at high risk of collision that had been blocked at the second level for strings already in the Root Zone.

Name collision refers to the unintended consequences that may occur when a new gTLD string matches an existing string on an internal network. In other words, as new gTLDs and second-level domains go live, they could “collide” with an exact match already in use within private networks.

Readers of gtldstrategy.com will recall that ICANN has been grappling with the issue since March 2013 when Verisign warned of security concerns caused by potential name collisions. In the fall of 2013, ICANN published an initial proposal stating that two strings, .HOME and .CORP, should be deferred from delegation indefinitely, while another two dozen new gTLDs could not be categorized. Those two dozen gTLDs were effectively left in limbo with no clear path forward while ICANN deliberated a final plan. All other strings were allowed to proceed using an Alternative Path to Delegation that required registries to block a list of terms thought to be at high risk of collision at the second level.

A resolution was reached last week when ICANN adopted the mitigation plan proposed by JAS Global Advisors, an independent information security firm. The plan requires all registries that delegate after a certain date to institute a 90-day “controlled interruption” period during which technical experts will monitor the domain name environment. During that period, only NIC.TLD may be registered. Other names may be allocated but not activated.

Registries that have delegated already must also adhere to the 90-day delay but only for second-level names on their blocked lists that they wish to release. New gTLDs that have launched but registered no name other than NIC.TLD may choose to undergo the 90-day name hold period, during which all names will be on hold not just the names on their block lists. Following the 90-day period, all eligible names will be released.

Despite the “all’s cleared” sign, problems remain.

Given the likelihood of collision with internal networks, the NGPC announced that .MAIL, .HOME, and .CORP will remain indefinitely deferred from delegation. ICANN has referred these strings to the Internet Engineering Task Force (IETF) to determine the best way to handle them.

Trademark owners also face a quandary. We have seen in the past how technical issues often conflict with business considerations, and the name collision mitigation plan is another example.

Among the names on the formerly blocked lists are, by some estimates, thousands of trademarks, which in some cases, brand owners were unable to register during Sunrise periods. In some cases, registries allowed trademark owners to reserve their marks, assuming the blocked names would eventually be released. In other cases, registries offered no such service and simply held back the blocked trademarks.

Thus, in some cases, brand owners never had a chance to register their marks ahead of the general public, which means trademarked terms will be available to one and all if the brand owner doesn’t move swiftly.

Protecting brand owners throughout the new gTLD application and delegation process has always been FairWinds Partners’ priority. The ICANN community will discuss this conundrum over the coming months. FairWinds will be watching closely and working with relevant ICANN groups to help to ensure that ICANN develops a remedy that helps businesses protect their trademarks.

Show Me the EMONEY

The disputed domain name in this week’s decision is emoney.com owned by a Mr. Will E. The complainant, Electronic Transaction Systems Corporation, claims to have used the EMONEY trademark for financial services since 1999. Unfortunately, its trademark registrations are in the name of someone else and weren’t filed until some years after respondent created its accused domain name.

shutterstock_164636990The complainant also claims it had common-law rights to the mark but it didn’t submit any evidence beyond the “First Use” date listed in its trademark registrations. The panel found that the complainant failed to satisfy even this preliminary requirement of UDRP policy regarding ownership of prior trademark rights.

The panel also found that the complainant failed to show that the respondent has no rights to or legitimate interest in the domain name. Respondent made bona fide use of the domain name either as part of a business which resells generic domain names, and this was one such domain name, or as the host site for links to third parties offering goods or services linked in some way with electronic monetary matters.

As for bad faith, the three-member panel noted that the name has a dictionary meaning and is rather descriptive when used in relation to financial services. It then pointed out that “at the time of registration Respondent could not have done any meaningful due diligence on the term EMONEY and it would not have discovered Complainant’s USPTO filings.”

Finally, the panel hinted at a laches issue: “Even if Respondent was an astute cybersquatter who spotted the (unproven) public use of the Complainant’s trademark in 1999, fourteen years has since elapsed. In the absence of any compelling physical evidence, this passage of time makes the meaningful assessment of Respondent’s state of mind in 2000 difficult.”

Ultimately, the complaint was denied, but the complainant was spared a worse penalty when the panel said “although Complainant might have better tempered its submissions there has been no attempt at reverse domain name hijacking.”