The Domain Name Process: Dealing with Cyberpiracy in the Top Level Country Code

The Domain Name Process: Dealing with Cyberpiracy in the Top Level Country Code

Today many developing countries are revising their legal framework to take advantage of the opportunities afforded in the digital environment. One common issue that arises is how to deal with cyberpiracy in the top level country code (ccTLD). Policymakers and lawmakers at a local level will benefit from following international developments.

Cyberpiracy is the deliberate, bad faith registration as domain names of "well-known"1 and other trademarks. This is done by persons hoping either to sell the domain names to the owners of those marks, or take unfair advantage of the reputation attached to those marks.

The problem of cyberpiracy has been facilitated by the differences of the two systems for business identifiers-the domain name system (DNS) which facilitates electronic commerce, and the traditional system of intellectual property rights protection. The DNS system is largely privately administered and gives rise to registrations that result in a global presence, accessible from anywhere in the world. The intellectual property rights system is publicly administered on a territorial basis and gives rise to rights that are exercisable only within the territory concerned.

Handling cyberpiracy

Internationally cyberpiracy is currently being fought on two fronts: legislative action and improved domain name registration procedures (including dispute resolution) at the level of the registration authorities. A number of countries have introduced legislation to combat cyberpiracy. However, until a more uniform systematic approach is formulated at the international level, the mere enactment of legislation in developing countries will not be the most desirable method for dealing with cyberpiracy. This is because:

  1. The nature of the infringement of the Domain Name System changes rapidly. While trademark infringement is the major problem, abuses of other recognized identifiers, such as trade names and geographical names are increasing.2 Policies aimed at dealing with cyberpiracy will likely need to be updated on a regular basis. However, the nature of the legislative process is such that it does not lend itself easily to frequent revisions.

  2. If countries choose to enact legislation ostensibly designed to combat cyberpiracy without harmonizing their efforts, what is likely to emerge is a body of inconsistent laws and regimes. This will result in difficulties in the application and enforcement of the laws particularly with respect to questions of jurisdiction and applicable law.

  3. Legislation leaves the issue of enforcement to the courts. Court proceedings are generally expensive and slow, and the results are difficult to enforce in an international context. Further, there is a dearth of expertise in this area at the judicial level in many countries.

Consequently, most international current efforts to curb infringements of the Domain Name System are aimed at creating better registration practices and dispute resolution procedures of domain registration authorities. This is the case both in the generic top-level domains, as well as in the country code-level domains. In light of the above, alternative dispute resolution procedures, based on policies adopted by domain name registration authorities, have met with considerable success. As these policies are based on contract they are far easier to revise than laws. A uniform standard for alternative dispute resolution procedures has emerged in the form of ICANN Uniform Domain Dispute Resolution Policy.

ICANN and the Uniform Dispute Resolution Policy Process

Internet Corporation for Assigned Names and Numbers (ICANN), the corporation established for the technical management of the domain name system, has instituted the Uniform Dispute Resolution Policy (URDP) for domain name disputes.

Four alternative dispute resolution (ADR) providers have been selected by ICANN. The World Intellectual Property organization (WIPO), National Arbitartion Forum, Disputes.org/eResolution Consortium, and the CPR Institute for Dispute Resolution.

While the URDP applies primarily to the domain names in the .com .net .org .biz and .info top level domains, a number of developing countries, including Anguilla, Antigua and Barbuda, Bahamas, Guatemala, Namibia, Niue, Philippines, Trinidad and Tobago and Venezuela have adopted a version of the URDP. This allows disputes involving domain names in those country code top-level domains to be resolved under the URDP process.3

There are several advantages to using the UDRP- speed; decisions are handed down in about 45-60 days. In most developing countries the courts tend to be overburdened, and cases may take years to resolution-definitely not the best scenario in the world of e-commerce. The URDP is also inexpensive; an important consideration when one of the parties, particularly the complainant, is from a developing country and the other is not.

The process is also quite simple in practice. Each party submits only one document. There is no need for the complainant to track down the other party to effect service of documents, as in traditional cybersquatting litigation.

To develop consistency in the decisions of the arbitrators, ICANN has formulated rules for the standards governing domain name disputes. ICANN has also provided illustrative examples of conduct, which is consistent with legitimate interest, and conduct that constitutes bad faith.

WIPO's ccTLD program

WIPO has launched a ccTLD Program, the objective of which is to provide assistance to the administrators of the ccTLDs in the following areas:

  • the design of appropriate domain name registration practices aimed at preventing friction between domain names and intellectual property rights;

  • the design of appropriate dispute resolution procedures, to complement traditional court litigation, aimed at resolving domain name disputes expeditiously and at a moderate cost; and

  • the provision of dispute resolution services through the WIPO Arbitration and Mediation Centre to any ccTLD administrator who wishes to retain it for that purpose.

WIPO has published "ccTLD Best Practices for the Prevention and Resolution of Intellectual Property Disputes " which is available at http://ecommerce.wipo.int/domains/cctlds/bestpractices/bestpractices.doc


1     Under WTO's Trade Related Aspects of Intellectual Property Rights, well-known trademarks were singled out for special protection, over and above that afforded to ordinary trademarks. In some countries it was common practice for parties to deliberately register well-known trademarks in the hopes of selling the marks to the bona fide proprietors. This resulted in barriers to trade and foreign investment, and hence economic development, as corporations waited months and years for a trademark dispute to be resolved in the courts before they entered the "local" market.

2      See WIPO Second Domain Name Report at http://wipo2.wipo.int/process2/report/index.html

3     Domain Name Dispute Resolution: A Model for the Future? David H. Bernstein, Debevoise & Plimpton


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