FW: New ICA Post on the LRO
FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins - at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never - since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs - and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O'Toole observed in an excellent analysis recently posted on Bloomberg BNA's E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner...The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business... The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)... In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook<http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections...Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard... The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it... These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O'Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others' use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right - and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN's horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it's not clear that a brand like Express would have any special "sunrise" registration priority for potential second level domains along the lines of O'Toole's speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to "squat' at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless - and that may be the correct result. Indeed, short of halting the program, it's not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone's trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that "The LRO is working just fine, thank you"[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain...Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service's objection to .mail, were based on stretched interpretations of a trademark (and that's being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it's going to say in this new gTLD application round. I'm feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. * Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process... * Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO's LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. * Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there's some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy's analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, "Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists."[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant - and undoubtedly controversial - changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark's strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections- as well as litigation being filed by unsuccessful complainants who refuse to take WIPO's decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit "closed generic" gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that's an issue falling outside any trademark protection debate and a discussion for another day. [1]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://en.wikipedia.org/wiki/FISA_Court [2]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://www.wipo.int/amc/en/domains/lro/cases/ [3]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://www.bna.com/icann-legal-rights-b17179875369/ [4]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://www.wipo.int/amc/en/domains/lro/fees/ [8]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]<file:///C:\Users\pcorwin.PCorwin-W7\Documents\ICA-LRO-webpost.docx>http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com<mailto:ica-mail+unsubscribe@googlegroups.com>. To post to this group, send email to ica-mail@googlegroups.com<mailto:ica-mail@googlegroups.com>. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out. ________________________________ [1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
I am not so sure any of these cases were wrongly decided. <br/><br/>Sent from Yahoo! Mail for iPhone
I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; To: bc-gnso@icann.org<mailto:bc-gnso@icann.org> <bc-gnso@icann.org<mailto:bc-gnso@icann.org>>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook<http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it… These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com<javascript:return>. To post to this group, send email to ica-mail@googlegroups.com<javascript:return>. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out. ________________________________ [1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided.
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________________________________ From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM
FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark
registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it…
These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running.These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand.The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf) and Merck v Merck (pdf), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks.Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey
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No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com. To post to this group, send email to ica-mail@googlegroups.com. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out.
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[1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
I am finding this a fascinating discussion, but take note that many are perhaps not familiar with some of the 'acronyms'. [they are defined in original article]. The BC in fact has a leading role [thanks to Chris Chaplow, V.Chair, Operations and Finance and a few members] in creating the acronym 'buster'. Do J.Scott and Phil think that LRO rises to the level of needing to be added to th acronym Buster? I wasn't sure, but Chris, if one wanted to add a term to the Acronym Buster, is there a process? The Acronym buster is used by the CSG and by many in the ICANN community, so I am not asking just because of 'us' but also about the larger community's 'understanding'. I was recently with AfiCTA in Nigeria, speaking to ten associations from across Africa, and earlier in Jordan, speaking to 22 countries at MENA ICT week -- in both cases -- to businesses. The Acronym Buster was a real 'hit' to decoding ICANN. Just a question about adding in some of the complex terms that help to decode ICANN to business users. Marilyn Cade Date: Sun, 4 Aug 2013 20:40:38 -0700 From: jscottevans@yahoo.com Subject: Re: [bc-gnso] FW: New ICA Post on the LRO To: psc@vlaw-dc.com CC: bc-gnso@icann.org That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it… These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf) and Merck v Merck (pdf), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com. To post to this group, send email to ica-mail@googlegroups.com. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out. [1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
Good point. LRO means Legal Rights Objection, just in case anyone on this list is wondering before the acronym gets added to the acronym buster. It is one of the objection mechanisms built for the new gTLD program. Thanks, Stéphane Van Gelder Chairman and Managing Director/Fondateur STEPHANE VAN GELDER CONSULTING T (FR): +33 (0)6 20 40 55 89 T (UK): +44 (0)7583 457053 Skype: SVANGELDER www.StephaneVanGelder.com ---------------- Follow us on Twitter: @stephvg and "like" us on Facebook: www.facebook.com/DomainConsultant LinkedIn: fr.linkedin.com/in/domainconsultant/ Le 5 août 2013 à 14:54, Marilyn Cade <marilynscade@hotmail.com> a écrit :
I am finding this a fascinating discussion, but take note that many are perhaps not familiar with some of the 'acronyms'. [they are defined in original article].
The BC in fact has a leading role [thanks to Chris Chaplow, V.Chair, Operations and Finance and a few members] in creating the acronym 'buster'.
Do J.Scott and Phil think that LRO rises to the level of needing to be added to th acronym Buster? I wasn't sure, but
Chris, if one wanted to add a term to the Acronym Buster, is there a process?
The Acronym buster is used by the CSG and by many in the ICANN community, so I am not asking just because of 'us' but also about the larger community's 'understanding'.
I was recently with AfiCTA in Nigeria, speaking to ten associations from across Africa, and earlier in Jordan, speaking to 22 countries at MENA ICT week -- in both cases -- to businesses. The Acronym Buster was a real 'hit' to decoding ICANN.
Just a question about adding in some of the complex terms that help to decode ICANN to business users.
Marilyn Cade
Date: Sun, 4 Aug 2013 20:40:38 -0700 From: jscottevans@yahoo.com Subject: Re: [bc-gnso] FW: New ICA Post on the LRO To: psc@vlaw-dc.com CC: bc-gnso@icann.org
That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win.
In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008.
J. Scott
j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com
From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO
I don't disagree, and never said they were.
Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell
Twitter: @VLawDC
"Luck is the residue of design" -- Branch Rickey
Sent from my iPad
On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote:
I am not so sure any of these cases were wrongly decided.
Sent from Yahoo! Mail for iPhone
From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM
FYI/BC members may find my latest opinion piece of some interest---
http://internetcommerce.org/LROlooksDOA
LRO Looks DOA
The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it… These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf) and Merck v Merck (pdf), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds.
We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8]administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell
Twitter: @VlawDC
"Luck is the residue of design" -- Branch Rickey
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[1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
Marilyn, <br/><br/>That us an excellent suggestion. Chris?<br/><br/>Sent from Yahoo! Mail for iPhone
Hi, Yes - the LRO is included in the ‘Acronym Buster’ and new ones can be added by email to me or filling in the suggestion form at <http://www.andalucia.com/icann/> http://www.andalucia.com/icann/ The ‘Acronym Buster’ or “Acronym Helper” was created from an idea by Scott Pinzon, Ken Bour and myself when we were on the GNSO Improvements Communication and Coordination Work Team writing a spec for the new GNSO website. A programmer in my office quickly developed it and we tested it at <http://www.andalucia.com/icann/> http://www.andalucia.com/icann/ where suggestions can be submitted for inclusion. In practice I keep it up to date and add new ones at the rate of a few a week and even more during ICANN meetings. Now there are almost 500 included. The editorial policy is passive; if the acronym is used in ICANN-land it can be included. Sometimes there are two different acronym versions of the same phrase and one wins in popularity. There is an <iframe> identical copy with exactly the same data set on the BC website which is updated automatically. <http://www.bizconst.org/glossary.htm> http://www.bizconst.org/glossary.htm Here the text suggests you can send me an email to include a new one. The code was also used to develop acronym busters on the GNSO website and the main ICANN website and our data set was used at launch but I suspect they have not been updated much since. I am please about how useful and popular it is and also that it has been heralded as a great example of ICANN / Community collaboration to produce a useful product. Best Chris Chaplow Managing Director Andalucia.com S.L. Avenida del Carmen 9 Ed. Puertosol, Puerto Deportivo 1ª Planta, Oficina 30 Estepona, 29680 Malaga, Spain Tel: + (34) 952 897 865 Fax: + (34) 952 897 874 E-mail: <mailto:chris@andalucia.com> chris@andalucia.com Web: <http://www.andalucia.com/> www.andalucia.com Information about Andalucia, Spain. De: owner-bc-gnso@icann.org [mailto:owner-bc-gnso@icann.org] En nombre de J. Scott Evans Enviado el: lunes, 05 de agosto de 2013 15:59 Para: marilynscade@hotmail.com; psc@vlaw-dc.com CC: bc-gnso@icann.org Asunto: [bc-gnso] RE: Codes and Communications -- question about ensuring communication Marilyn, That us an excellent suggestion. Chris? Sent from Yahoo! Mail for iPhone _____ From: Marilyn Cade <marilynscade@hotmail.com>; To: J. Scott Evans <jscottevans@yahoo.com>; Phil Corwin <psc@vlaw-dc.com>; Cc: bc - GNSO list <bc-gnso@icann.org>; Subject: Codes and Communications -- question about ensuring communication Sent: Mon, Aug 5, 2013 12:54:29 PM I am finding this a fascinating discussion, but take note that many are perhaps not familiar with some of the 'acronyms'. [they are defined in original article]. The BC in fact has a leading role [thanks to Chris Chaplow, V.Chair, Operations and Finance and a few members] in creating the acronym 'buster'. Do J.Scott and Phil think that LRO rises to the level of needing to be added to th acronym Buster? I wasn't sure, but Chris, if one wanted to add a term to the Acronym Buster, is there a process? The Acronym buster is used by the CSG and by many in the ICANN community, so I am not asking just because of 'us' but also about the larger community's 'understanding'. I was recently with AfiCTA in Nigeria, speaking to ten associations from across Africa, and earlier in Jordan, speaking to 22 countries at MENA ICT week -- in both cases -- to businesses. The Acronym Buster was a real 'hit' to decoding ICANN. Just a question about adding in some of the complex terms that help to decode ICANN to business users. Marilyn Cade _____ Date: Sun, 4 Aug 2013 20:40:38 -0700 From: jscottevans@yahoo.com Subject: Re: [bc-gnso] FW: New ICA Post on the LRO To: psc@vlaw-dc.com CC: bc-gnso@icann.org That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com _____ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com <javascript:return> > wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone _____ From: Phil Corwin <psc@vlaw-dc.com <javascript:return> >; To: bc-gnso@icann.org <javascript:return> <bc-gnso@icann.org <javascript:return> >; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012 <https://us-mg6.mail.yahoo.com/neo/#_ftn1> [1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants <https://us-mg6.mail.yahoo.com/neo/#_ftn2> [2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog <https://us-mg6.mail.yahoo.com/neo/#_ftn3> [3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook <http://newgtlds.icann.org/en/applicants/agb> . The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it… These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you” <https://us-mg6.mail.yahoo.com/neo/#_ftn4> [4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating <https://us-mg6.mail.yahoo.com/neo/#_ftn5> [5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf <http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...> ) and Merck v Merck (pdf <http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...> ), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts <http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...> , for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.” <https://us-mg6.mail.yahoo.com/neo/#_ftn6> [6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel <https://us-mg6.mail.yahoo.com/neo/#_ftn7> [7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection <https://us-mg6.mail.yahoo.com/neo/#_ftn8> [8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases <https://us-mg6.mail.yahoo.com/neo/#_ftn9> [9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees <https://us-mg6.mail.yahoo.com/neo/#_ftn10> [10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1] <http://en.wikipedia.org/wiki/FISA_Court> http://en.wikipedia.org/wiki/FISA_Court [2] <http://www.wipo.int/amc/en/domains/lro/cases/> http://www.wipo.int/amc/en/domains/lro/cases/ [3] <http://www.bna.com/icann-legal-rights-b17179875369/> http://www.bna.com/icann-legal-rights-b17179875369/ [4] <http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] <http://domainincite.com/13949-thats-all-folks-no-more-lro-news> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] <http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite...> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] <http://www.wipo.int/amc/en/domains/lro/fees/> http://www.wipo.int/amc/en/domains/lro/fees/ [8] <http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in...> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] <http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] <http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey _____ _____ No virus found in this message. Checked by AVG - www.avg.com <http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 _____ _____ No virus found in this message. Checked by AVG - www.avg.com <http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com. To post to this group, send email to ica-mail@googlegroups.com. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out. _____ <https://us-mg6.mail.yahoo.com/neo/#_ftnref1> [1] http://en.wikipedia.org/wiki/FISA_Court <https://us-mg6.mail.yahoo.com/neo/#_ftnref2> [2] http://www.wipo.int/amc/en/domains/lro/cases/ <https://us-mg6.mail.yahoo.com/neo/#_ftnref3> [3] http://www.bna.com/icann-legal-rights-b17179875369/ <https://us-mg6.mail.yahoo.com/neo/#_ftnref4> [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ <https://us-mg6.mail.yahoo.com/neo/#_ftnref5> [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news <https://us-mg6.mail.yahoo.com/neo/#_ftnref6> [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... <https://us-mg6.mail.yahoo.com/neo/#_ftnref7> [7] http://www.wipo.int/amc/en/domains/lro/fees/ <https://us-mg6.mail.yahoo.com/neo/#_ftnref8> [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... <https://us-mg6.mail.yahoo.com/neo/#_ftnref9> [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 <https://us-mg6.mail.yahoo.com/neo/#_ftnref10> [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
Thanks Chris!!!!! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From: Chris Chaplow <chris@andalucia.com> To: 'J. Scott Evans' <jscottevans@yahoo.com>; marilynscade@hotmail.com; psc@vlaw-dc.com Cc: bc-gnso@icann.org Sent: Monday, August 5, 2013 8:39 AM Subject: RE: [bc-gnso] RE: Codes and Communications -- question about ensuring communication Hi, Yes - the LRO is included in the ‘Acronym Buster’ and new ones can be added by email to me or filling in the suggestion form at http://www.andalucia.com/icann/ The ‘Acronym Buster’ or “Acronym Helper” was created from an idea by Scott Pinzon, Ken Bour and myself when we were on the GNSO Improvements Communication and Coordination Work Team writing a spec for the new GNSO website. A programmer in my office quickly developed it and we tested it at http://www.andalucia.com/icann/ where suggestions can be submitted for inclusion. In practice I keep it up to date and add new ones at the rate of a few a week and even more during ICANN meetings. Now there are almost 500 included. The editorial policy is passive; if the acronym is used in ICANN-land it can be included. Sometimes there are two different acronym versions of the same phrase and one wins in popularity. There is an <iframe> identical copy with exactly the same data set on the BC website which is updated automatically. http://www.bizconst.org/glossary.htm Here the text suggests you can send me an email to include a new one. The code was also used to develop acronym busters on the GNSO website and the main ICANN website and our data set was used at launch but I suspect they have not been updated much since. I am please about how useful and popular it is and also that it has been heralded as a great example of ICANN / Community collaboration to produce a useful product. Best Chris Chaplow Managing Director Andalucia.com S.L. Avenidadel Carmen 9 Ed. Puertosol, Puerto Deportivo 1ª Planta, Oficina30 Estepona, 29680 Malaga, Spain Tel: + (34) 952 897 865 Fax: + (34) 952 897 874 E-mail: chris@andalucia.com Web: www.andalucia.com Information about Andalucia, Spain. De:owner-bc-gnso@icann.org [mailto:owner-bc-gnso@icann.org] En nombre de J. Scott Evans Enviado el: lunes, 05 de agosto de 2013 15:59 Para: marilynscade@hotmail.com; psc@vlaw-dc.com CC: bc-gnso@icann.org Asunto: [bc-gnso] RE: Codes and Communications -- question about ensuring communication Marilyn, That us an excellent suggestion. Chris? Sent from Yahoo! Mail for iPhone ________________________________ From: Marilyn Cade <marilynscade@hotmail.com>; To: J. Scott Evans <jscottevans@yahoo.com>; Phil Corwin <psc@vlaw-dc.com>; Cc: bc - GNSO list <bc-gnso@icann.org>; Subject: Codes and Communications -- question about ensuring communication Sent: Mon, Aug 5, 2013 12:54:29 PM I am finding this a fascinating discussion, but take note that many are perhaps not familiar with some of the 'acronyms'. [they are defined in original article]. The BC in fact has a leading role [thanks to Chris Chaplow, V.Chair, Operations and Finance and a few members] in creating the acronym 'buster'. Do J.Scott and Phil think that LRO rises to the level of needing to be added to th acronym Buster? I wasn't sure, but Chris, if one wanted to add a term to the Acronym Buster, is there a process? The Acronym buster is used by the CSG and by many in the ICANN community, so I am not asking just because of 'us' but also about the larger community's 'understanding'. I was recently with AfiCTA in Nigeria, speaking to ten associations from across Africa, and earlier in Jordan, speaking to 22 countries at MENA ICT week -- in both cases -- to businesses. The Acronym Buster was a real 'hit' to decoding ICANN. Just a question about adding in some of the complex terms that help to decode ICANN to business users. Marilyn Cade ________________________________ Date: Sun, 4 Aug 2013 20:40:38 -0700 From: jscottevans@yahoo.com Subject: Re: [bc-gnso] FW: New ICA Post on the LRO To: psc@vlaw-dc.com CC: bc-gnso@icann.org That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From:Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided.
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From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark
registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it…
These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running.These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand.The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf) and Merck v Merck (pdf), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks.Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey
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No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com. To post to this group, send email to ica-mail@googlegroups.com. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out.
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[1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list – well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> Cc: "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; To: bc-gnso@icann.org<mailto:bc-gnso@icann.org> <bc-gnso@icann.org<mailto:bc-gnso@icann.org>>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]<https://us-mg6.mail.yahoo.com/neo/#_ftn1>). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]<https://us-mg6.mail.yahoo.com/neo/#_ftn2>. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]<https://us-mg6.mail.yahoo.com/neo/#_ftn3>: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook<http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it… These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4]<https://us-mg6.mail.yahoo.com/neo/#_ftn4>, weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]<https://us-mg6.mail.yahoo.com/neo/#_ftn5>: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. • Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… • Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. • Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6]<https://us-mg6.mail.yahoo.com/neo/#_ftn6> And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]<https://us-mg6.mail.yahoo.com/neo/#_ftn7>. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8]<https://us-mg6.mail.yahoo.com/neo/#_ftn8> administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9]<https://us-mg6.mail.yahoo.com/neo/#_ftn9> filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10]<https://us-mg6.mail.yahoo.com/neo/#_ftn10> , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey ________________________________ ________________________________ No virus found in this message. 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For more options, visit https://groups.google.com/groups/opt_out. ________________________________ [1]<https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court [2]<https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ [3]<https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ [4]<https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]<https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]<https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]<https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ [8]<https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]<https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]<https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list – well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From:J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From:Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided.
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From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark
registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it…
These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running.These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand.The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf) and Merck v Merck (pdf), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks.Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey
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[1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
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Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com>wrote:
Phil:
The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure!
j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com
------------------------------ *From:* Phil Corwin <psc@vlaw-dc.com> *To:* J. Scott Evans <jscottevans@yahoo.com> *Cc:* "bc-gnso@icann.org" <bc-gnso@icann.org> *Sent:* Monday, August 5, 2013 7:58 AM *Subject:* RE: [bc-gnso] FW: New ICA Post on the LRO
Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be.
Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round.
As for adding LRO to acronym list – well of course!
*Philip S. Corwin, Founding Principal* *Virtualaw LLC* *1155 F Street, NW* *Suite 1050* *Washington, DC 20004* *202-559-8597/Direct* *202-559-8750/Fax* *202-255-6172/cell*** * * *Twitter: @VlawDC*
*"Luck is the residue of design" -- Branch Rickey*
*From:* J. Scott Evans [mailto:jscottevans@yahoo.com] *Sent:* Sunday, August 04, 2013 11:41 PM *To:* Phil Corwin *Cc:* bc-gnso@icann.org *Subject:* Re: [bc-gnso] FW: New ICA Post on the LRO
That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win.
In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008.
J. Scott
*j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com*
------------------------------ *From:* Phil Corwin <psc@vlaw-dc.com> *To:* J. Scott Evans <jscottevans@yahoo.com> *Cc:* "bc-gnso@icann.org" <bc-gnso@icann.org> *Sent:* Sunday, August 4, 2013 8:14 PM *Subject:* Re: [bc-gnso] FW: New ICA Post on the LRO
I don't disagree, and never said they were.
Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell
Twitter: @VLawDC
"Luck is the residue of design" -- Branch Rickey
Sent from my iPad
On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote:
I am not so sure any of these cases were wrongly decided.
Sent from Yahoo! Mail for iPhone
------------------------------ *From: *Phil Corwin <psc@vlaw-dc.com>; *To: *bc-gnso@icann.org <bc-gnso@icann.org>; *Subject: *[bc-gnso] FW: New ICA Post on the LRO *Sent: *Sun, Aug 4, 2013 10:05:16 PM
FYI/BC members may find my latest opinion piece of some interest---
http://internetcommerce.org/LROlooksDOA
*LRO Looks DOA* * * The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1] <https://us-mg6.mail.yahoo.com/neo/#_ftn1>). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2] <https://us-mg6.mail.yahoo.com/neo/#_ftn2>.
The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]<https://us-mg6.mail.yahoo.com/neo/#_ftn3> : *[T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business…* *The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)…* *In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook <http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain.* *In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard…* *The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it…* *These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain.* O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4]<https://us-mg6.mail.yahoo.com/neo/#_ftn4>, weighing in with this analysis: *The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted?* *Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous).* Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5] <https://us-mg6.mail.yahoo.com/neo/#_ftn5>: *The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail.* *This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories.* · *Front-running.** These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process…* · *Brand v Brand.** The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD.* · *Generic trademarks.** Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights.* *In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level.* *The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds.* * * We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, *“Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] <https://us-mg6.mail.yahoo.com/neo/#_ftn6>* And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7] <https://us-mg6.mail.yahoo.com/neo/#_ftn7>. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] <https://us-mg6.mail.yahoo.com/neo/#_ftn8>administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9]<https://us-mg6.mail.yahoo.com/neo/#_ftn9>filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10]<https://us-mg6.mail.yahoo.com/neo/#_ftn10>, which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
*Philip S. Corwin, Founding Principal* *Virtualaw LLC* *1155 F Street, NW* *Suite 1050* *Washington, DC 20004* *202-559-8597/Direct* *202-559-8750/Fax* *202-255-6172/cell* * * *Twitter: @VlawDC*
*"Luck is the residue of design" -- Branch Rickey*
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------------------------------ [1] <https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court [2] <https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ [3] <https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ [4] <https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] <https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] <https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] <https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ [8] <https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] <https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] <https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
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-- Andy Abrams | Trademark Counsel *Google* | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752 <https://www.google.com/voice#phones>
Andy: Interesting thoughts . . . . j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From: Andy Abrams <abrams@google.com> To: Phil Corwin <psc@vlaw-dc.com>; "jscottevans@yahoo.com" <jscottevans@yahoo.com>; bc - GNSO list <bc-gnso@icann.org> Sent: Monday, August 5, 2013 5:21 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com> wrote: Phil:
The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com
________________________________ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO
Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list – well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From:J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com
________________________________
From:Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were.
Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad
On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided.
Sent from Yahoo! Mail for iPhone
________________________________
From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark
registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it…
These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running.These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand.The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf) and Merck v Merck (pdf), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks.Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey
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No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com. To post to this group, send email to ica-mail@googlegroups.com. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out.
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[1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
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-- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752
+1 Thanks for bringing this perspective to the discussion Andy. Very interesting. Stéphane Van Gelder Chairman and Managing Director/Fondateur STEPHANE VAN GELDER CONSULTING T (FR): +33 (0)6 20 40 55 89 T (UK): +44 (0)7583 457053 Skype: SVANGELDER www.StephaneVanGelder.com ---------------- Follow us on Twitter: @stephvg and "like" us on Facebook: www.facebook.com/DomainConsultant LinkedIn: fr.linkedin.com/in/domainconsultant/ Le 6 août 2013 à 02:25, J. Scott Evans <jscottevans@yahoo.com> a écrit :
Andy:
Interesting thoughts . . . .
j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com
From: Andy Abrams <abrams@google.com> To: Phil Corwin <psc@vlaw-dc.com>; "jscottevans@yahoo.com" <jscottevans@yahoo.com>; bc - GNSO list <bc-gnso@icann.org> Sent: Monday, August 5, 2013 5:21 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO
Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?
Andy
On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com> wrote: Phil:
The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure!
j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com
From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO
Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be.
Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round.
As for adding LRO to acronym list – well of course!
Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell
Twitter: @VlawDC
"Luck is the residue of design" -- Branch Rickey
From: J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO
That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win.
In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008.
J. Scott
j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com
From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO
I don't disagree, and never said they were.
Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell
Twitter: @VLawDC
"Luck is the residue of design" -- Branch Rickey
Sent from my iPad
On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided.
Sent from Yahoo! Mail for iPhone
From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM
FYI/BC members may find my latest opinion piece of some interest---
http://internetcommerce.org/LROlooksDOA
LRO Looks DOA
The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it… These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf) and Merck v Merck (pdf), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds.
We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell
Twitter: @VlawDC
"Luck is the residue of design" -- Branch Rickey
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[1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
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-- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752
You are most welcome, Andy. I'm glad that you thought my post captured the LRO process well. In regard to your comment - "However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?' - these "side issues" are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn't just a new gTLD issue - there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration. The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable. Best regards, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: Andy Abrams [mailto:abrams@google.com] Sent: Monday, August 05, 2013 8:22 PM To: Phil Corwin; jscottevans@yahoo.com; bc - GNSO list Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> Cc: "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it's working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list - well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org<mailto:bc-gnso@icann.org> Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> Cc: "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; To: bc-gnso@icann.org<mailto:bc-gnso@icann.org> <bc-gnso@icann.org<mailto:bc-gnso@icann.org>>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins - at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never - since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]<https://us-mg6.mail.yahoo.com/neo/#_ftn1>). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]<https://us-mg6.mail.yahoo.com/neo/#_ftn2>. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs - and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O'Toole observed in an excellent analysis recently posted on Bloomberg BNA's E-Commerce and Tech Law Blog[3]<https://us-mg6.mail.yahoo.com/neo/#_ftn3>: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner...The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business... The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)... In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook<http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections...Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard... The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it... These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O'Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others' use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right - and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN's horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it's not clear that a brand like Express would have any special "sunrise" registration priority for potential second level domains along the lines of O'Toole's speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to "squat' at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless - and that may be the correct result. Indeed, short of halting the program, it's not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone's trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that "The LRO is working just fine, thank you"[4]<https://us-mg6.mail.yahoo.com/neo/#_ftn4>, weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain...Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service's objection to .mail, were based on stretched interpretations of a trademark (and that's being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]<https://us-mg6.mail.yahoo.com/neo/#_ftn5>: The Legal Rights Objection has, I think, said pretty much everything it's going to say in this new gTLD application round. I'm feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. * Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process... * Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO's LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. * Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there's some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy's analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, "Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists."[6]<https://us-mg6.mail.yahoo.com/neo/#_ftn6> And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]<https://us-mg6.mail.yahoo.com/neo/#_ftn7>. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant - and undoubtedly controversial - changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8]<https://us-mg6.mail.yahoo.com/neo/#_ftn8> administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9]<https://us-mg6.mail.yahoo.com/neo/#_ftn9> filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10]<https://us-mg6.mail.yahoo.com/neo/#_ftn10> , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark's strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections- as well as litigation being filed by unsuccessful complainants who refuse to take WIPO's decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit "closed generic" gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that's an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com<mailto:ica-mail%2Bunsubscribe@googlegroups.com>. To post to this group, send email to ica-mail@googlegroups.com<mailto:ica-mail@googlegroups.com>. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out. ________________________________ [1]<https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court [2]<https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ [3]<https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ [4]<https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]<https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]<https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]<https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ [8]<https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]<https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]<https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752<https://www.google.com/voice#phones> ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
Why amend the UDRP? Sue them for will trademark infringement, then you get damages.<br/><br/>Sent from Yahoo! Mail for iPhone
That would be an interesting lawsuit, J. Scott. I don't know of any US domain trademark infringement case that has ever considered a "cross-dot" reading of the entire domain name, left side and right, so unless I'm mistaken in that it would set a precedent. The outcome might well depend on the facts and circumstances. If someone were brazen enough to register federal.express for an overnight delivery service not affiliated with Federal Express a court certainly might be willing to read both sides together. However, there are other possible scenarios. For example, in Washington there is an urban men's clothing store named Federal that is affiliated with a skateboard store named Palace 5. My dictionary contains several definition for "express", including "operating at high speed" as an adjective. I'm not sure that if Federal registered federal.express and used it as a webpage to promote skateboard attire that infringement would be found, especially given USPTO's view and court rulings up to now that the right of the dot serves no source identification function. Overall, I think the potential for such "cross-dot" instances of potential infringement would be fairly rare, but we'll see. But I do appreciate the recognition that dealing with "cross-dot" readings could require amendment of the UDRP. Again, my original point is that if there is a need to address this issue it should be done in a considered fashion with community input and not on an ad hoc basis by individual UDRP examiners. Best, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Tuesday, August 06, 2013 6:59 AM To: Phil Corwin; abrams@google.com; bc-gnso@icann.org Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Why amend the UDRP? Sue them for will trademark infringement, then you get damages. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; To: Andy Abrams <abrams@google.com<mailto:abrams@google.com>>; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>>; bc - GNSO list <bc-gnso@icann.org<mailto:bc-gnso@icann.org>>; Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Sent: Tue, Aug 6, 2013 10:25:11 AM You are most welcome, Andy. I'm glad that you thought my post captured the LRO process well. In regard to your comment - "However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?' - these "side issues" are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn't just a new gTLD issue - there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration. The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable. Best regards, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: Andy Abrams [mailto:abrams@google.com] Sent: Monday, August 05, 2013 8:22 PM To: Phil Corwin; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>; bc - GNSO list Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com<javascript:return>> wrote: Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<javascript:return> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<javascript:return>> To: J. Scott Evans <jscottevans@yahoo.com<javascript:return>> Cc: "bc-gnso@icann.org<javascript:return>" <bc-gnso@icann.org<javascript:return>> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it's working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list - well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com<javascript:return>] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org<javascript:return> Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<javascript:return> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<javascript:return>> To: J. Scott Evans <jscottevans@yahoo.com<javascript:return>> Cc: "bc-gnso@icann.org<javascript:return>" <bc-gnso@icann.org<javascript:return>> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com<javascript:return>> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<javascript:return>>; To: bc-gnso@icann.org<javascript:return> <bc-gnso@icann.org<javascript:return>>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins - at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never - since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]<https://us-mg6.mail.yahoo.com/neo/#_ftn1>). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]<https://us-mg6.mail.yahoo.com/neo/#_ftn2>. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs - and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O'Toole observed in an excellent analysis recently posted on Bloomberg BNA's E-Commerce and Tech Law Blog[3]<https://us-mg6.mail.yahoo.com/neo/#_ftn3>: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner...The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business... The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)... In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook<http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections...Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard... The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it... These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O'Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others' use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right - and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN's horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it's not clear that a brand like Express would have any special "sunrise" registration priority for potential second level domains along the lines of O'Toole's speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to "squat' at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless - and that may be the correct result. Indeed, short of halting the program, it's not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone's trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that "The LRO is working just fine, thank you"[4]<https://us-mg6.mail.yahoo.com/neo/#_ftn4>, weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain...Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service's objection to .mail, were based on stretched interpretations of a trademark (and that's being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]<https://us-mg6.mail.yahoo.com/neo/#_ftn5>: The Legal Rights Objection has, I think, said pretty much everything it's going to say in this new gTLD application round. I'm feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. * Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process... * Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO's LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. * Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there's some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy's analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, "Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists."[6]<https://us-mg6.mail.yahoo.com/neo/#_ftn6> And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]<https://us-mg6.mail.yahoo.com/neo/#_ftn7>. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant - and undoubtedly controversial - changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8]<https://us-mg6.mail.yahoo.com/neo/#_ftn8> administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9]<https://us-mg6.mail.yahoo.com/neo/#_ftn9> filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10]<https://us-mg6.mail.yahoo.com/neo/#_ftn10> , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark's strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections- as well as litigation being filed by unsuccessful complainants who refuse to take WIPO's decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit "closed generic" gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that's an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com<javascript:return>. To post to this group, send email to ica-mail@googlegroups.com<javascript:return>. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out. ________________________________ [1]<https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court [2]<https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ [3]<https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ [4]<https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]<https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]<https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]<https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ [8]<https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]<https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]<https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752<https://www.google.com/voice#phones> ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
Phil: You are correct. There may be non-infringing scenarios, just like there are non-infringing domain name speculation vs. cybersquatting. Some overzealous attorneys conflate the two into the same thing. I don't. My comment was simply about an infringing use of the cross-dot example raised by Andy. jse j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com>; "abrams@google.com" <abrams@google.com>; "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Tuesday, August 6, 2013 9:25 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO That would be an interesting lawsuit, J. Scott. I don’t know of any US domain trademark infringement case that has ever considered a “cross-dot” reading of the entire domain name, left side and right, so unless I’m mistaken in that it would set a precedent. The outcome might well depend on the facts and circumstances. If someone were brazen enough to register federal.express for an overnight delivery service not affiliated with Federal Express a court certainly might be willing to read both sides together. However, there are other possible scenarios. For example, in Washington there is an urban men’s clothing store named Federal that is affiliated with a skateboard store named Palace 5. My dictionary contains several definition for “express”, including “operating at high speed” as an adjective. I’m not sure that if Federal registered federal.express and used it as a webpage to promote skateboard attire that infringement would be found, especially given USPTO’s view and court rulings up to now that the right of the dot serves no source identification function. Overall, I think the potential for such “cross-dot” instances of potential infringement would be fairly rare, but we’ll see. But I do appreciate the recognition that dealing with “cross-dot” readings could require amendment of the UDRP. Again, my original point is that if there is a need to address this issue it should be done in a considered fashion with community input and not on an ad hoc basis by individual UDRP examiners. Best, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From:J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Tuesday, August 06, 2013 6:59 AM To: Phil Corwin; abrams@google.com; bc-gnso@icann.org Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Why amend the UDRP? Sue them for will trademark infringement, then you get damages. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com>; To: Andy Abrams <abrams@google.com>; jscottevans@yahoo.com <jscottevans@yahoo.com>; bc - GNSO list <bc-gnso@icann.org>; Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Sent: Tue, Aug 6, 2013 10:25:11 AM You are most welcome, Andy. I’m glad that you thought my post captured the LRO process well. In regard to your comment – “However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?’ – these “side issues” are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn’t just a new gTLD issue – there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration. The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable. Best regards, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From:Andy Abrams [mailto:abrams@google.com] Sent: Monday, August 05, 2013 8:22 PM To: Phil Corwin; jscottevans@yahoo.com; bc - GNSO list Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com> wrote: Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list – well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From:J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From:Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided.
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From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark
registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it…
These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running.These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand.The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf) and Merck v Merck (pdf), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks.Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey
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No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
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No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com. To post to this group, send email to ica-mail@googlegroups.com. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out.
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[1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
________________________________ No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752 ________________________________ No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
Thanks Scott. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Tuesday, August 06, 2013 1:28 PM To: Phil Corwin; abrams@google.com; bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Phil: You are correct. There may be non-infringing scenarios, just like there are non-infringing domain name speculation vs. cybersquatting. Some overzealous attorneys conflate the two into the same thing. I don't. My comment was simply about an infringing use of the cross-dot example raised by Andy. jse j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>>; "abrams@google.com<mailto:abrams@google.com>" <abrams@google.com<mailto:abrams@google.com>>; "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Tuesday, August 6, 2013 9:25 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO That would be an interesting lawsuit, J. Scott. I don’t know of any US domain trademark infringement case that has ever considered a “cross-dot” reading of the entire domain name, left side and right, so unless I’m mistaken in that it would set a precedent. The outcome might well depend on the facts and circumstances. If someone were brazen enough to register federal.express for an overnight delivery service not affiliated with Federal Express a court certainly might be willing to read both sides together. However, there are other possible scenarios. For example, in Washington there is an urban men’s clothing store named Federal that is affiliated with a skateboard store named Palace 5. My dictionary contains several definition for “express”, including “operating at high speed” as an adjective. I’m not sure that if Federal registered federal.express and used it as a webpage to promote skateboard attire that infringement would be found, especially given USPTO’s view and court rulings up to now that the right of the dot serves no source identification function. Overall, I think the potential for such “cross-dot” instances of potential infringement would be fairly rare, but we’ll see. But I do appreciate the recognition that dealing with “cross-dot” readings could require amendment of the UDRP. Again, my original point is that if there is a need to address this issue it should be done in a considered fashion with community input and not on an ad hoc basis by individual UDRP examiners. Best, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Tuesday, August 06, 2013 6:59 AM To: Phil Corwin; abrams@google.com<mailto:abrams@google.com>; bc-gnso@icann.org<mailto:bc-gnso@icann.org> Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Why amend the UDRP? Sue them for will trademark infringement, then you get damages. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; To: Andy Abrams <abrams@google.com<mailto:abrams@google.com>>; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>>; bc - GNSO list <bc-gnso@icann.org<mailto:bc-gnso@icann.org>>; Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Sent: Tue, Aug 6, 2013 10:25:11 AM You are most welcome, Andy. I’m glad that you thought my post captured the LRO process well. In regard to your comment – “However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?’ – these “side issues” are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn’t just a new gTLD issue – there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration. The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable. Best regards, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: Andy Abrams [mailto:abrams@google.com] Sent: Monday, August 05, 2013 8:22 PM To: Phil Corwin; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>; bc - GNSO list Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com> wrote: Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list – well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]<https://us-mg6.mail.yahoo.com/neo/#_ftn1>). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]<https://us-mg6.mail.yahoo.com/neo/#_ftn2>. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]<https://us-mg6.mail.yahoo.com/neo/#_ftn3>: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook<http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it… These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4]<https://us-mg6.mail.yahoo.com/neo/#_ftn4>, weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]<https://us-mg6.mail.yahoo.com/neo/#_ftn5>: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. • Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… • Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. • Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6]<https://us-mg6.mail.yahoo.com/neo/#_ftn6> And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]<https://us-mg6.mail.yahoo.com/neo/#_ftn7>. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8]<https://us-mg6.mail.yahoo.com/neo/#_ftn8> administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9]<https://us-mg6.mail.yahoo.com/neo/#_ftn9> filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10]<https://us-mg6.mail.yahoo.com/neo/#_ftn10> , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey ________________________________ ________________________________ No virus found in this message. 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For more options, visit https://groups.google.com/groups/opt_out. ________________________________ [1]<https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court [2]<https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ [3]<https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ [4]<https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]<https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]<https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]<https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ [8]<https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]<https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]<https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752<https://www.google.com/voice#phones> ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ No virus found in this message. 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Hi Phil, In the litigation context I'm not sure why cross-dot cases would be any different from standard trademark cases where having a trademark in the domain name is not a necessary prerequisite to establishing infringement. If a website uses a YouTube banner and copies the website's layout, it's infringing whether the domain is videos.com or you.tube. Regarding domain name/cybersquatting disputes, I respectfully don't think we need a substantive overhaul of the UDRP. I think it's very possible that this shift to overall domain consideration could be created by common law through individual UDRP decisions. And given the fact-specific nature of these types of disputes which focus on consumer confusion, I don't think this is necessarily a bad thing. I agree with your example that skateboard attire is probably far enough away from overnight delivery services to avoid infringement; but if walm.art, you.tube or wal.green are used for egregious "knock-off" websites, I'm fairly confident that the decision would go the complainant's way under the current UDRP system. It's an interesting issue brought on by new gTLDs, and I'll definitely try to look into this further. Best, Andy On Tue, Aug 6, 2013 at 9:25 AM, Phil Corwin <psc@vlaw-dc.com> wrote:
That would be an interesting lawsuit, J. Scott. I don’t know of any US domain trademark infringement case that has ever considered a “cross-dot” reading of the entire domain name, left side and right, so unless I’m mistaken in that it would set a precedent. ****
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The outcome might well depend on the facts and circumstances. If someone were brazen enough to register federal.express for an overnight delivery service not affiliated with Federal Express a court certainly might be willing to read both sides together. However, there are other possible scenarios. For example, in Washington there is an urban men’s clothing store named Federal that is affiliated with a skateboard store named Palace 5. My dictionary contains several definition for “express”, including “operating at high speed” as an adjective. I’m not sure that if Federal registered federal.express and used it as a webpage to promote skateboard attire that infringement would be found, especially given USPTO’s view and court rulings up to now that the right of the dot serves no source identification function.****
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Overall, I think the potential for such “cross-dot” instances of potential infringement would be fairly rare, but we’ll see.****
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But I do appreciate the recognition that dealing with “cross-dot” readings could require amendment of the UDRP. Again, my original point is that if there is a need to address this issue it should be done in a considered fashion with community input and not on an ad hoc basis by individual UDRP examiners. ****
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Best, Philip****
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** **
*Philip S. Corwin, Founding Principal*****
*Virtualaw LLC*****
*1155 F Street, NW*****
*Suite 1050*****
*Washington, DC 20004*****
*202-559-8597/Direct*****
*202-559-8750/Fax*****
*202-255-6172/cell***
* *
*Twitter: @VlawDC*****
****
*"Luck is the residue of design" -- Branch Rickey*****
** **
*From:* J. Scott Evans [mailto:jscottevans@yahoo.com] *Sent:* Tuesday, August 06, 2013 6:59 AM *To:* Phil Corwin; abrams@google.com; bc-gnso@icann.org
*Subject:* RE: [bc-gnso] FW: New ICA Post on the LRO****
** **
Why amend the UDRP? Sue them for will trademark infringement, then you get damages.
Sent from Yahoo! Mail for iPhone****
** ** ------------------------------
*From: *Phil Corwin <psc@vlaw-dc.com>; *To: *Andy Abrams <abrams@google.com>; jscottevans@yahoo.com < jscottevans@yahoo.com>; bc - GNSO list <bc-gnso@icann.org>; *Subject: *RE: [bc-gnso] FW: New ICA Post on the LRO *Sent: *Tue, Aug 6, 2013 10:25:11 AM ****
** **
You are most welcome, Andy. I’m glad that you thought my post captured the LRO process well. ****
****
In regard to your comment – “However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?’ – these “side issues” are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn’t just a new gTLD issue – there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration.****
****
The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable.****
****
Best regards,****
Philip****
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****
*Philip S. Corwin, Founding Principal*****
*Virtualaw LLC*****
*1155 F Street, NW*****
*Suite 1050*****
*Washington, DC 20004*****
*202-559-8597/Direct*****
*202-559-8750/Fax*****
*202-255-6172/cell*****
* *****
*Twitter: @VlawDC*****
****
*"Luck is the residue of design" -- Branch Rickey*****
****
*From:* Andy Abrams [mailto:abrams@google.com <abrams@google.com>] *Sent:* Monday, August 05, 2013 8:22 PM *To:* Phil Corwin; jscottevans@yahoo.com; bc - GNSO list *Subject:* Re: [bc-gnso] FW: New ICA Post on the LRO****
****
Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?****
****
Andy****
****
On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com> wrote:****
Phil:****
****
The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure!****
****
*j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com*****
**** ------------------------------
*From:* Phil Corwin <psc@vlaw-dc.com> *To:* J. Scott Evans <jscottevans@yahoo.com> *Cc:* "bc-gnso@icann.org" <bc-gnso@icann.org> ****
*Sent:* Monday, August 5, 2013 7:58 AM *Subject:* RE: [bc-gnso] FW: New ICA Post on the LRO****
****
Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be. ****
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Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round.****
****
As for adding LRO to acronym list – well of course! ****
****
*Philip S. Corwin, Founding Principal*****
*Virtualaw LLC*****
*1155 F Street, NW*****
*Suite 1050*****
*Washington, DC 20004*****
*202-559-8597/Direct*****
*202-559-8750/Fax*****
*202-255-6172/cell*****
* *****
*Twitter: @VlawDC*****
****
*"Luck is the residue of design" -- Branch Rickey*****
****
*From:* J. Scott Evans [mailto:jscottevans@yahoo.com] *Sent:* Sunday, August 04, 2013 11:41 PM *To:* Phil Corwin *Cc:* bc-gnso@icann.org *Subject:* Re: [bc-gnso] FW: New ICA Post on the LRO****
****
That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win.****
****
In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008.****
****
J. Scott****
****
*j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com*****
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*From:* Phil Corwin <psc@vlaw-dc.com> *To:* J. Scott Evans <jscottevans@yahoo.com> *Cc:* "bc-gnso@icann.org" <bc-gnso@icann.org> *Sent:* Sunday, August 4, 2013 8:14 PM *Subject:* Re: [bc-gnso] FW: New ICA Post on the LRO****
****
I don't disagree, and never said they were.
Philip S. Corwin, Founding Principal ****
Virtualaw LLC****
1155 F Street, NW****
Suite 1050****
Washington, DC 20004****
202-559-8597/Direct****
202-559-8750/Fax****
202-255-6172/Cell****
****
Twitter: @VLawDC****
****
"Luck is the residue of design" -- Branch Rickey****
****
Sent from my iPad****
On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote:****
I am not so sure any of these cases were wrongly decided.
Sent from Yahoo! Mail for iPhone****
**** ------------------------------
*From: *Phil Corwin <psc@vlaw-dc.com>; *To: *bc-gnso@icann.org <bc-gnso@icann.org>; *Subject: *[bc-gnso] FW: New ICA Post on the LRO *Sent: *Sun, Aug 4, 2013 10:05:16 PM ****
****
FYI/BC members may find my latest opinion piece of some interest---****
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http://internetcommerce.org/LROlooksDOA****
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*LRO Looks DOA*****
* *****
The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses.****
The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1] <https://us-mg6.mail.yahoo.com/neo/#_ftn1>). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2] <https://us-mg6.mail.yahoo.com/neo/#_ftn2>. ****
The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. ****
As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]<https://us-mg6.mail.yahoo.com/neo/#_ftn3> :****
*[T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business…*****
*The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)…*****
*In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook <http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain.*****
*In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard…*****
*The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it…*****
*These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain.*****
O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express.****
Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement.****
Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4]<https://us-mg6.mail.yahoo.com/neo/#_ftn4>, weighing in with this analysis:****
*The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted?*****
*Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous).*****
Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5] <https://us-mg6.mail.yahoo.com/neo/#_ftn5>:****
*The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail.*****
*This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories.*****
· *Front-running.** These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process…*****
· *Brand v Brand.** The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD.*****
· *Generic trademarks.** Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights.*****
*In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level.*****
*The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds.*****
* *****
We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, *“Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] <https://us-mg6.mail.yahoo.com/neo/#_ftn6>*****
And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7] <https://us-mg6.mail.yahoo.com/neo/#_ftn7>. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing.****
As for the other objection procedure available to third parties, the Community Objection[8] <https://us-mg6.mail.yahoo.com/neo/#_ftn8>administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9]<https://us-mg6.mail.yahoo.com/neo/#_ftn9>filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10]<https://us-mg6.mail.yahoo.com/neo/#_ftn10>, which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations.****
Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. ****
The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. ****
Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day.****
[1]http://en.wikipedia.org/wiki/FISA_Court****
[2]http://www.wipo.int/amc/en/domains/lro/cases/****
[3]http://www.bna.com/icann-legal-rights-b17179875369/****
[4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ ****
[5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news****
[6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... ****
[7]http://www.wipo.int/amc/en/domains/lro/fees/****
[8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... ****
[9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883****
[10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... ****
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****
*Philip S. Corwin, Founding Principal*****
*Virtualaw LLC*****
*1155 F Street, NW*****
*Suite 1050*****
*Washington, DC 20004*****
*202-559-8597/Direct*****
*202-559-8750/Fax*****
*202-255-6172/cell*****
* *****
*Twitter: @VlawDC*****
****
*"Luck is the residue of design" -- Branch Rickey*****
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[1] <https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court ****
[2] <https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ ****
[3] <https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ ****
[4] <https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ ** **
[5] <https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news ****
[6] <https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... ****
[7] <https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ ****
[8] <https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... ****
[9] <https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 ****
[10] <https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... ****
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-- Andy Abrams | Trademark Counsel *G**o**o**g**l**e* | 1600 Amphitheatre Parkway, Mountain View, CA 94043*** *
(650) 669-8752 <https://www.google.com/voice#phones>**** ------------------------------
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-- Andy Abrams | Trademark Counsel *Google* | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752 <https://www.google.com/voice#phones>
You make good points, Andy. I think this is a very useful discussion, and my main point is simply that, like the other rights protections implemented for new gTLDs, there should be broad community discussion of all the potential implications rather than leaving everything to "case law" adjudication. I'm making no brief in favor of egregious "knock-off" websites, but there could also be many shades of gray instances. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: Andy Abrams [mailto:abrams@google.com] Sent: Tuesday, August 06, 2013 1:37 PM To: Phil Corwin Cc: J. Scott Evans; bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Hi Phil, In the litigation context I'm not sure why cross-dot cases would be any different from standard trademark cases where having a trademark in the domain name is not a necessary prerequisite to establishing infringement. If a website uses a YouTube banner and copies the website's layout, it's infringing whether the domain is videos.com<http://videos.com> or you.tube. Regarding domain name/cybersquatting disputes, I respectfully don't think we need a substantive overhaul of the UDRP. I think it's very possible that this shift to overall domain consideration could be created by common law through individual UDRP decisions. And given the fact-specific nature of these types of disputes which focus on consumer confusion, I don't think this is necessarily a bad thing. I agree with your example that skateboard attire is probably far enough away from overnight delivery services to avoid infringement; but if walm.art, you.tube or wal.green are used for egregious "knock-off" websites, I'm fairly confident that the decision would go the complainant's way under the current UDRP system. It's an interesting issue brought on by new gTLDs, and I'll definitely try to look into this further. Best, Andy On Tue, Aug 6, 2013 at 9:25 AM, Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> wrote: That would be an interesting lawsuit, J. Scott. I don't know of any US domain trademark infringement case that has ever considered a "cross-dot" reading of the entire domain name, left side and right, so unless I'm mistaken in that it would set a precedent. The outcome might well depend on the facts and circumstances. If someone were brazen enough to register federal.express for an overnight delivery service not affiliated with Federal Express a court certainly might be willing to read both sides together. However, there are other possible scenarios. For example, in Washington there is an urban men's clothing store named Federal that is affiliated with a skateboard store named Palace 5. My dictionary contains several definition for "express", including "operating at high speed" as an adjective. I'm not sure that if Federal registered federal.express and used it as a webpage to promote skateboard attire that infringement would be found, especially given USPTO's view and court rulings up to now that the right of the dot serves no source identification function. Overall, I think the potential for such "cross-dot" instances of potential infringement would be fairly rare, but we'll see. But I do appreciate the recognition that dealing with "cross-dot" readings could require amendment of the UDRP. Again, my original point is that if there is a need to address this issue it should be done in a considered fashion with community input and not on an ad hoc basis by individual UDRP examiners. Best, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>] Sent: Tuesday, August 06, 2013 6:59 AM To: Phil Corwin; abrams@google.com<mailto:abrams@google.com>; bc-gnso@icann.org<mailto:bc-gnso@icann.org> Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Why amend the UDRP? Sue them for will trademark infringement, then you get damages. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; To: Andy Abrams <abrams@google.com<mailto:abrams@google.com>>; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>>; bc - GNSO list <bc-gnso@icann.org<mailto:bc-gnso@icann.org>>; Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Sent: Tue, Aug 6, 2013 10:25:11 AM You are most welcome, Andy. I'm glad that you thought my post captured the LRO process well. In regard to your comment - "However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?' - these "side issues" are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn't just a new gTLD issue - there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration. The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable. Best regards, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: Andy Abrams [mailto:abrams@google.com] Sent: Monday, August 05, 2013 8:22 PM To: Phil Corwin; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>; bc - GNSO list Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> Cc: "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it's working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list - well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org<mailto:bc-gnso@icann.org> Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> Cc: "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; To: bc-gnso@icann.org<mailto:bc-gnso@icann.org> <bc-gnso@icann.org<mailto:bc-gnso@icann.org>>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins - at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never - since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]<https://us-mg6.mail.yahoo.com/neo/#_ftn1>). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]<https://us-mg6.mail.yahoo.com/neo/#_ftn2>. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs - and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O'Toole observed in an excellent analysis recently posted on Bloomberg BNA's E-Commerce and Tech Law Blog[3]<https://us-mg6.mail.yahoo.com/neo/#_ftn3>: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner...The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business... The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)... In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook<http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections...Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard... The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it... These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O'Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others' use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right - and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN's horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it's not clear that a brand like Express would have any special "sunrise" registration priority for potential second level domains along the lines of O'Toole's speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to "squat' at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless - and that may be the correct result. Indeed, short of halting the program, it's not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone's trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that "The LRO is working just fine, thank you"[4]<https://us-mg6.mail.yahoo.com/neo/#_ftn4>, weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain...Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service's objection to .mail, were based on stretched interpretations of a trademark (and that's being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]<https://us-mg6.mail.yahoo.com/neo/#_ftn5>: The Legal Rights Objection has, I think, said pretty much everything it's going to say in this new gTLD application round. I'm feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. * Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process... * Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO's LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. * Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there's some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy's analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, "Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists."[6]<https://us-mg6.mail.yahoo.com/neo/#_ftn6> And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]<https://us-mg6.mail.yahoo.com/neo/#_ftn7>. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant - and undoubtedly controversial - changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8]<https://us-mg6.mail.yahoo.com/neo/#_ftn8> administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9]<https://us-mg6.mail.yahoo.com/neo/#_ftn9> filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10]<https://us-mg6.mail.yahoo.com/neo/#_ftn10> , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark's strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections- as well as litigation being filed by unsuccessful complainants who refuse to take WIPO's decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit "closed generic" gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that's an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com<mailto:ica-mail+unsubscribe@googlegroups.com>. To post to this group, send email to ica-mail@googlegroups.com<mailto:ica-mail@googlegroups.com>. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out. ________________________________ [1]<https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court [2]<https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ [3]<https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ [4]<https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]<https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]<https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]<https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ [8]<https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]<https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]<https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752<https://www.google.com/voice#phones> ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ No virus found in this message. 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Phil, where you state that these "side issues" are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. The facts do not support your broad assertion to the effect that the UDRP "only contemplates the name to the left of the dot". There have been many cases in which that is just not an accurate assertion. In UDRP proceedings where a trademark ends in "NET", domain name registrations in the .net TLD have been determined "identical or confusingly similar" under the UDRP rules. For example, in WIPO Case No. D2000-0008, the domain name "SIX.NET" was found to be identical or confusingly similar to the registered trademark "SIXNET". That was in the first year of operation of the UDRP. While the case was decided on other grounds, it cleared the first element of the UDRP. In disputes under ".tv", which is one of the existing TLDs you mention, the fact that the TLD is perceived to communicate "television" has indeed been a factor in UDRP disputes involving .tv names. For example WIPO DTV2011-0008 involved a dispute over "channel.tv" - http://www.wipo.int/amc/en/domains/search/text.jsp?case=DTV2011-0008 . While the domain registrant had excellent legal representation and prevailed on other grounds, under the first element of the Policy, the domain name "channel.tv" was indeed found to be "identical" to the alleged mark "Channel TV". What is generally true is that where the second-level domain name matches the alleged trademark, the TLD is typically ignored. That has been appropriate, since the bulk of disputes have involved .com names, and ".com" has no particular meaning. For example in Cello Holdings v. Lawrence-Dahl Cos., 89 F.Supp.2d 464, 472-75 (S.D.N.Y. 2000), the court discussed a hypothetical situation in which "apple.com" were used to sell apples, which would not violate the mark of the computer company. However, it should be apparent that in a circumstance where .computers was a TLD, and one was looking at the domain name apple.computers, then the TLD signifies a class of goods such that the entire domain name "apple.computers" unambiguously identifies a trademark owner. In other words, where TLD's have had little or no meaning apart from signifying an address of "something on the internet", they were not important. Likewise, in forward comparisons of a domain name to a mark, the TLD itself was generally not signaling anything of consequence. However, in "reverse" comparisons of a mark to a domain name, in an environment where TLD's do carry meaning, then it does not make sense to mechanically apply a rule that was developed under a different set of assumptions about TLD's themselves. There can be no question that domain names such as wal.mart or walm.art both "look like Wal-Mart". Outcomes under trademark law have always been based on consumer perception, not mechanical rules for parsing strings, and it is not reasonable to expect mechanical application of a perceived rule, when the rationale for the "general rule" is no longer valid. I am certain that UDRP providers, and at least some panelists, have given this the consideration it deserves. Just some thoughts, Mari Jo From: owner-bc-gnso@icann.org [mailto:owner-bc-gnso@icann.org] On Behalf Of Phil Corwin Sent: Tuesday, August 06, 2013 6:25 AM To: Andy Abrams; jscottevans@yahoo.com; bc - GNSO list Subject: RE: [bc-gnso] FW: New ICA Post on the LRO You are most welcome, Andy. I'm glad that you thought my post captured the LRO process well. In regard to your comment - "However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?' - these "side issues" are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn't just a new gTLD issue - there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration. The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable. Best regards, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: Andy Abrams [mailto:abrams@google.com] Sent: Monday, August 05, 2013 8:22 PM To: Phil Corwin; jscottevans@yahoo.com; bc - GNSO list Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com> wrote: Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com _____ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it's working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list - well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com _____ From: Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone _____ From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins - at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never - since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012 <https://us-mg6.mail.yahoo.com/neo/#_ftn1> [1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants <https://us-mg6.mail.yahoo.com/neo/#_ftn2> [2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs - and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O'Toole observed in an excellent analysis recently posted on Bloomberg BNA's E-Commerce and Tech Law Blog <https://us-mg6.mail.yahoo.com/neo/#_ftn3> [3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner.The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business. The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013). In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook <http://newgtlds.icann.org/en/applicants/agb> . The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections.Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard. The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it. These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O'Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others' use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right - and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN's horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it's not clear that a brand like Express would have any special "sunrise" registration priority for potential second level domains along the lines of O'Toole's speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to "squat' at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless - and that may be the correct result. Indeed, short of halting the program, it's not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone's trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that "The LRO is working just fine, thank you" <https://us-mg6.mail.yahoo.com/neo/#_ftn4> [4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain.Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service's objection to .mail, were based on stretched interpretations of a trademark (and that's being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating <https://us-mg6.mail.yahoo.com/neo/#_ftn5> [5]: The Legal Rights Objection has, I think, said pretty much everything it's going to say in this new gTLD application round. I'm feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. . Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process. . Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO's LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf <http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.p df> ) and Merck v Merck (pdf <http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.p df> ), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. . Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts <http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express- gtld> , for example. Panelists have found that unless there's some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy's analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, "Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists." <https://us-mg6.mail.yahoo.com/neo/#_ftn6> [6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel <https://us-mg6.mail.yahoo.com/neo/#_ftn7> [7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant - and undoubtedly controversial - changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection <https://us-mg6.mail.yahoo.com/neo/#_ftn8> [8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases <https://us-mg6.mail.yahoo.com/neo/#_ftn9> [9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees <https://us-mg6.mail.yahoo.com/neo/#_ftn10> [10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark's strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections- as well as litigation being filed by unsuccessful complainants who refuse to take WIPO's decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit "closed generic" gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that's an issue falling outside any trademark protection debate and a discussion for another day. [1] <http://en.wikipedia.org/wiki/FISA_Court> http://en.wikipedia.org/wiki/FISA_Court [2] <http://www.wipo.int/amc/en/domains/lro/cases/> http://www.wipo.int/amc/en/domains/lro/cases/ [3] <http://www.bna.com/icann-legal-rights-b17179875369/> http://www.bna.com/icann-legal-rights-b17179875369/ [4] <http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you /> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] <http://domainincite.com/13949-thats-all-folks-no-more-lro-news> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] <http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limit ed-the-entire-wipo-lro-process-was-set-up-to-fail-by-icann/> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite d-the-entire-wipo-lro-process-was-set-up-to-fail-by-icann/ [7] <http://www.wipo.int/amc/en/domains/lro/fees/> http://www.wipo.int/amc/en/domains/lro/fees/ [8] <http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/i ntroduction-to-icann-new-gtld-dispute-resolution/> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in troduction-to-icann-new-gtld-dispute-resolution/ [9] <http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] <http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/i cann-new-gtld-dispute-resolution/costs-and-payments/> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic ann-new-gtld-dispute-resolution/costs-and-payments/ Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey _____ _____ No virus found in this message. Checked by AVG - www.avg.com <http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 _____ _____ No virus found in this message. Checked by AVG - www.avg.com <http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com <mailto:ica-mail%2Bunsubscribe@googlegroups.com> . To post to this group, send email to ica-mail@googlegroups.com. Visit this group at http://groups.google.com/group/ica-mail. 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For more options, visit https://groups.google.com/groups/opt_out. _____ [1] <https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court [2] <https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ [3] <https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ [4] <https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] <https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] <https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite d-the-entire-wipo-lro-process-was-set-up-to-fail-by-icann/ [7] <https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ [8] <https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in troduction-to-icann-new-gtld-dispute-resolution/ [9] <https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] <https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic ann-new-gtld-dispute-resolution/costs-and-payments/ _____ No virus found in this message. Checked by AVG - www.avg.com <http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 <https://www.google.com/voice#phones> (650) 669-8752 _____ No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
I agree with Mari Jo. Phil please don't imply that I agree about the need for a fundamental change to the UDRP simply because I would go for the jugular. ;-) My comment is one of strategy, not policy. j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From: Mari Jo Keukelaar <mj@johnberryhill.com> To: 'Phil Corwin' <psc@vlaw-dc.com>; 'Andy Abrams' <abrams@google.com>; jscottevans@yahoo.com; 'bc - GNSO list' <bc-gnso@icann.org> Sent: Tuesday, August 6, 2013 10:14 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Phil, where you state that these “side issues” are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. The facts do not support your broad assertion to the effect that the UDRP "only contemplates the name to the left of the dot". There have been many cases in which that is just not an accurate assertion. In UDRP proceedings where a trademark ends in "NET", domain name registrations in the .net TLD have been determined "identical or confusingly similar" under the UDRP rules. For example, in WIPO Case No. D2000-0008, the domain name "SIX.NET" was found to be identical or confusingly similar to the registered trademark "SIXNET". That was in the first year of operation of the UDRP. While the case was decided on other grounds, it cleared the first element of the UDRP. In disputes under ".tv", which is one of the existing TLDs you mention, the fact that the TLD is perceived to communicate "television" has indeed been a factor in UDRP disputes involving .tv names. For example WIPO DTV2011-0008 involved a dispute over "channel.tv" - http://www.wipo.int/amc/en/domains/search/text.jsp?case=DTV2011-0008 . While the domain registrant had excellent legal representation and prevailed on other grounds, under the first element of the Policy, the domain name "channel.tv" was indeed found to be "identical" to the alleged mark "Channel TV". What is generally true is that where the second-level domain name matches the alleged trademark, the TLD is typically ignored. That has been appropriate, since the bulk of disputes have involved .com names, and ".com" has no particular meaning. For example in Cello Holdings v. Lawrence-Dahl Cos., 89 F.Supp.2d 464, 472-75 (S.D.N.Y. 2000), the court discussed a hypothetical situation in which "apple.com" were used to sell apples, which would not violate the mark of the computer company. However, it should be apparent that in a circumstance where .computers was a TLD, and one was looking at the domain name apple.computers, then the TLD signifies a class of goods such that the entire domain name "apple.computers" unambiguously identifies a trademark owner. In other words, where TLD's have had little or no meaning apart from signifying an address of "something on the internet", they were not important. Likewise, in forward comparisons of a domain name to a mark, the TLD itself was generally not signaling anything of consequence. However, in "reverse" comparisons of a mark to a domain name, in an environment where TLD's do carry meaning, then it does not make sense to mechanically apply a rule that was developed under a different set of assumptions about TLD's themselves. There can be no question that domain names such as wal.mart or walm.art both "look like Wal-Mart". Outcomes under trademark law have always been based on consumer perception, not mechanical rules for parsing strings, and it is not reasonable to expect mechanical application of a perceived rule, when the rationale for the "general rule" is no longer valid. I am certain that UDRP providers, and at least some panelists, have given this the consideration it deserves. Just some thoughts, Mari Jo From:owner-bc-gnso@icann.org [mailto:owner-bc-gnso@icann.org] On Behalf Of Phil Corwin Sent: Tuesday, August 06, 2013 6:25 AM To: Andy Abrams; jscottevans@yahoo.com; bc - GNSO list Subject: RE: [bc-gnso] FW: New ICA Post on the LRO You are most welcome, Andy. I’m glad that you thought my post captured the LRO process well. In regard to your comment – “However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?’ – these “side issues” are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn’t just a new gTLD issue – there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration. The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable. Best regards, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From:Andy Abrams [mailto:abrams@google.com] Sent: Monday, August 05, 2013 8:22 PM To: Phil Corwin; jscottevans@yahoo.com; bc - GNSO list Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com> wrote: Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From:Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent:Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list – well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From:J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com ________________________________ From:Phil Corwin <psc@vlaw-dc.com> To: J. Scott Evans <jscottevans@yahoo.com> Cc: "bc-gnso@icann.org" <bc-gnso@icann.org> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com> wrote: I am not so sure any of these cases were wrongly decided.
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From: Phil Corwin <psc@vlaw-dc.com>; To: bc-gnso@icann.org <bc-gnso@icann.org>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark
registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it…
These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4], weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. · Front-running.These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… · Brand v Brand.The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf) and Merck v Merck (pdf), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. · Generic trademarks.Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6] And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8] administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9] filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10] , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey
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No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
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No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com. To post to this group, send email to ica-mail@googlegroups.com. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out.
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[1] http://en.wikipedia.org/wiki/FISA_Court [2] http://www.wipo.int/amc/en/domains/lro/cases/ [3] http://www.bna.com/icann-legal-rights-b17179875369/ [4] http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5] http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6] http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7] http://www.wipo.int/amc/en/domains/lro/fees/ [8] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9] http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10] http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic...
________________________________ No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752 ________________________________ No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
Appreciate the clarification. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com] Sent: Tuesday, August 06, 2013 1:30 PM To: Mari Jo Keukelaar; Phil Corwin; 'Andy Abrams'; 'bc - GNSO list' Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I agree with Mari Jo. Phil please don't imply that I agree about the need for a fundamental change to the UDRP simply because I would go for the jugular. ;-) My comment is one of strategy, not policy. j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Mari Jo Keukelaar <mj@johnberryhill.com<mailto:mj@johnberryhill.com>> To: 'Phil Corwin' <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; 'Andy Abrams' <abrams@google.com<mailto:abrams@google.com>>; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>; 'bc - GNSO list' <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Tuesday, August 6, 2013 10:14 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Phil, where you state that these “side issues” are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. The facts do not support your broad assertion to the effect that the UDRP "only contemplates the name to the left of the dot". There have been many cases in which that is just not an accurate assertion. In UDRP proceedings where a trademark ends in "NET", domain name registrations in the .net TLD have been determined "identical or confusingly similar" under the UDRP rules. For example, in WIPO Case No. D2000-0008, the domain name "SIX.NET" was found to be identical or confusingly similar to the registered trademark "SIXNET". That was in the first year of operation of the UDRP. While the case was decided on other grounds, it cleared the first element of the UDRP. In disputes under ".tv", which is one of the existing TLDs you mention, the fact that the TLD is perceived to communicate "television" has indeed been a factor in UDRP disputes involving .tv names. For example WIPO DTV2011-0008 involved a dispute over "channel.tv" - http://www.wipo.int/amc/en/domains/search/text.jsp?case=DTV2011-0008 . While the domain registrant had excellent legal representation and prevailed on other grounds, under the first element of the Policy, the domain name "channel.tv" was indeed found to be "identical" to the alleged mark "Channel TV". What is generally true is that where the second-level domain name matches the alleged trademark, the TLD is typically ignored. That has been appropriate, since the bulk of disputes have involved .com names, and ".com" has no particular meaning. For example in Cello Holdings v. Lawrence-Dahl Cos., 89 F.Supp.2d 464, 472-75 (S.D.N.Y. 2000), the court discussed a hypothetical situation in which "apple.com" were used to sell apples, which would not violate the mark of the computer company. However, it should be apparent that in a circumstance where .computers was a TLD, and one was looking at the domain name apple.computers, then the TLD signifies a class of goods such that the entire domain name "apple.computers" unambiguously identifies a trademark owner. In other words, where TLD's have had little or no meaning apart from signifying an address of "something on the internet", they were not important. Likewise, in forward comparisons of a domain name to a mark, the TLD itself was generally not signaling anything of consequence. However, in "reverse" comparisons of a mark to a domain name, in an environment where TLD's do carry meaning, then it does not make sense to mechanically apply a rule that was developed under a different set of assumptions about TLD's themselves. There can be no question that domain names such as wal.mart or walm.art both "look like Wal-Mart". Outcomes under trademark law have always been based on consumer perception, not mechanical rules for parsing strings, and it is not reasonable to expect mechanical application of a perceived rule, when the rationale for the "general rule" is no longer valid. I am certain that UDRP providers, and at least some panelists, have given this the consideration it deserves. Just some thoughts, Mari Jo From: owner-bc-gnso@icann.org<mailto:owner-bc-gnso@icann.org> [mailto:owner-bc-gnso@icann.org] On Behalf Of Phil Corwin Sent: Tuesday, August 06, 2013 6:25 AM To: Andy Abrams; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>; bc - GNSO list Subject: RE: [bc-gnso] FW: New ICA Post on the LRO You are most welcome, Andy. I’m glad that you thought my post captured the LRO process well. In regard to your comment – “However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?’ – these “side issues” are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn’t just a new gTLD issue – there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration. The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable. Best regards, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: Andy Abrams [mailto:abrams@google.com] Sent: Monday, August 05, 2013 8:22 PM To: Phil Corwin; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>; bc - GNSO list Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> Cc: "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it’s working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list – well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org<mailto:bc-gnso@icann.org> Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> Cc: "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; To: bc-gnso@icann.org<mailto:bc-gnso@icann.org> <bc-gnso@icann.org<mailto:bc-gnso@icann.org>>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins – at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never – since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]<https://us-mg6.mail.yahoo.com/neo/#_ftn1>). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]<https://us-mg6.mail.yahoo.com/neo/#_ftn2>. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs – and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O’Toole observed in an excellent analysis recently posted on Bloomberg BNA’s E-Commerce and Tech Law Blog[3]<https://us-mg6.mail.yahoo.com/neo/#_ftn3>: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner…The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business… The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)… In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook<http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections…Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard… The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it… These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O’Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others’ use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right – and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN’s horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it’s not clear that a brand like Express would have any special “sunrise” registration priority for potential second level domains along the lines of O’Toole’s speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to “squat’ at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless – and that may be the correct result. Indeed, short of halting the program, it’s not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone’s trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that “The LRO is working just fine, thank you”[4]<https://us-mg6.mail.yahoo.com/neo/#_ftn4>, weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain…Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service’s objection to .mail, were based on stretched interpretations of a trademark (and that’s being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]<https://us-mg6.mail.yahoo.com/neo/#_ftn5>: The Legal Rights Objection has, I think, said pretty much everything it’s going to say in this new gTLD application round. I’m feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. • Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process… • Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO’s LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. • Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there’s some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy’s analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, “Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists.”[6]<https://us-mg6.mail.yahoo.com/neo/#_ftn6> And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]<https://us-mg6.mail.yahoo.com/neo/#_ftn7>. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant – and undoubtedly controversial – changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8]<https://us-mg6.mail.yahoo.com/neo/#_ftn8> administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9]<https://us-mg6.mail.yahoo.com/neo/#_ftn9> filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10]<https://us-mg6.mail.yahoo.com/neo/#_ftn10> , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark’s strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections– as well as litigation being filed by unsuccessful complainants who refuse to take WIPO’s decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit “closed generic” gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that’s an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com<mailto:ica-mail%2Bunsubscribe@googlegroups.com>. To post to this group, send email to ica-mail@googlegroups.com<mailto:ica-mail@googlegroups.com>. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out. ________________________________ [1]<https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court [2]<https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ [3]<https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ [4]<https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]<https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]<https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]<https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ [8]<https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]<https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]<https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752<https://www.google.com/voice#phones> ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
Thanks for the input, Mary Jo; I'm gaining new knowledge and insight as this dialogue continues. Interesting that in the two non-.com cases that you cite six.net and channel.tv, the visual appearance was sufficient to clear the first UDRP hurdle but ultimately the respondent prevailed. That was the point of my hypothetical federal.express example of a domain used to promote skateboard clothing, that visual similarity (in fact identical visual match but for the dot) is not sufficient to decide the elements of bad faith registration and use. With all the new genetic terms coming along as TLDs this will certainly be a most interesting area to watch and discuss - with preventing consumer confusion, much less exploitation, as the main goal. Best, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: Mari Jo Keukelaar [mailto:mj@johnberryhill.com] Sent: Tuesday, August 06, 2013 1:14 PM To: Phil Corwin; 'Andy Abrams'; jscottevans@yahoo.com; 'bc - GNSO list' Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Phil, where you state that these "side issues" are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. The facts do not support your broad assertion to the effect that the UDRP "only contemplates the name to the left of the dot". There have been many cases in which that is just not an accurate assertion. In UDRP proceedings where a trademark ends in "NET", domain name registrations in the .net TLD have been determined "identical or confusingly similar" under the UDRP rules. For example, in WIPO Case No. D2000-0008, the domain name "SIX.NET" was found to be identical or confusingly similar to the registered trademark "SIXNET". That was in the first year of operation of the UDRP. While the case was decided on other grounds, it cleared the first element of the UDRP. In disputes under ".tv", which is one of the existing TLDs you mention, the fact that the TLD is perceived to communicate "television" has indeed been a factor in UDRP disputes involving .tv names. For example WIPO DTV2011-0008 involved a dispute over "channel.tv" - http://www.wipo.int/amc/en/domains/search/text.jsp?case=DTV2011-0008 . While the domain registrant had excellent legal representation and prevailed on other grounds, under the first element of the Policy, the domain name "channel.tv" was indeed found to be "identical" to the alleged mark "Channel TV". What is generally true is that where the second-level domain name matches the alleged trademark, the TLD is typically ignored. That has been appropriate, since the bulk of disputes have involved .com names, and ".com" has no particular meaning. For example in Cello Holdings v. Lawrence-Dahl Cos., 89 F.Supp.2d 464, 472-75 (S.D.N.Y. 2000), the court discussed a hypothetical situation in which "apple.com" were used to sell apples, which would not violate the mark of the computer company. However, it should be apparent that in a circumstance where .computers was a TLD, and one was looking at the domain name apple.computers, then the TLD signifies a class of goods such that the entire domain name "apple.computers" unambiguously identifies a trademark owner. In other words, where TLD's have had little or no meaning apart from signifying an address of "something on the internet", they were not important. Likewise, in forward comparisons of a domain name to a mark, the TLD itself was generally not signaling anything of consequence. However, in "reverse" comparisons of a mark to a domain name, in an environment where TLD's do carry meaning, then it does not make sense to mechanically apply a rule that was developed under a different set of assumptions about TLD's themselves. There can be no question that domain names such as wal.mart or walm.art both "look like Wal-Mart". Outcomes under trademark law have always been based on consumer perception, not mechanical rules for parsing strings, and it is not reasonable to expect mechanical application of a perceived rule, when the rationale for the "general rule" is no longer valid. I am certain that UDRP providers, and at least some panelists, have given this the consideration it deserves. Just some thoughts, Mari Jo From: owner-bc-gnso@icann.org<mailto:owner-bc-gnso@icann.org> [mailto:owner-bc-gnso@icann.org] On Behalf Of Phil Corwin Sent: Tuesday, August 06, 2013 6:25 AM To: Andy Abrams; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>; bc - GNSO list Subject: RE: [bc-gnso] FW: New ICA Post on the LRO You are most welcome, Andy. I'm glad that you thought my post captured the LRO process well. In regard to your comment - "However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise?' - these "side issues" are complex and would represent a fundamental change in UDRP and subsidiary URS policy, which today only contemplates the name to the left or the dot with no consideration of the top level domain on the right side. Consideration of the right side in either UDRP or URS proceedings or as a matter of sunrise protection would be, I believe, a significant change in policy that requires extensive consideration, perhaps even a PDP, prior to any contemplated change in the scope of these protections. This isn't just a new gTLD issue - there are existing TLDs, especially ccTLDs like .me and .tv, that can raise similar questions. So far as I know there was absolutely no consideration or discussion of inclusion of right of the dot considerations in the development of the URS or TMC. Changes of this consequence should not be considered, much less implemented, on the fly absent adequate consideration. The GNSO decided in December 2011 that any PDP related to alteration of the UDRP should not be initiated until eighteen months after the introduction of new gTLDs. That may forestall any consideration of your suggestion unless there is a broad community desire to accelerate the timetable. Best regards, Philip Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: Andy Abrams [mailto:abrams@google.com] Sent: Monday, August 05, 2013 8:22 PM To: Phil Corwin; jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>; bc - GNSO list Subject: Re: [bc-gnso] FW: New ICA Post on the LRO Thanks to Phil for forwarding us his article - it captures the LRO process well. For what it's worth, I'm another trademark attorney that agrees with J. Scott that the system is actually working well, and brand owners shouldn't expect to preemptively stop the use of a generic term for an open TLD prior to any commercial activity. However, an interesting side-issue is whether the UDRP and URS panels will start to include TLDs as a factor in determining cybersquatting at the second level (e.g., cross-dot trademarks such as federal.express or you.tube). And if so, perhaps cross-dot trademarks should be included in Sunrise? Andy On Mon, Aug 5, 2013 at 8:08 AM, J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: Phil: The remedy provided is not more narrow than that provided under current national and international laws. If trademark owners want an absolute monopoly on a term then, yes, they will have to file for a top level domain in round two. Paul McGrady has been saying that the first come, first served method of distribution of top level domains by ICANN could lead to "permanent string preclusion" for those brands who have a dictionary term as a trademark. He has been saying this since 2008. Unfortunately, some brands don't listen. Go figure! j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> Cc: "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Monday, August 5, 2013 7:58 AM Subject: RE: [bc-gnso] FW: New ICA Post on the LRO Agree that it's working as intended, but doubt that most perceived how narrow a remedy it would be. Main takeaway for TM owners is that if you want to control your generic brand or product at top level of the DNS you need to submit a defensive application in 2nd round. As for adding LRO to acronym list - well of course! Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey From: J. Scott Evans [mailto:jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>] Sent: Sunday, August 04, 2013 11:41 PM To: Phil Corwin Cc: bc-gnso@icann.org<mailto:bc-gnso@icann.org> Subject: Re: [bc-gnso] FW: New ICA Post on the LRO That's correct you don't, but the article seems to imply that the LRO sets too high a burden or is somehow flawed and, for this reason, trademark owners are getting the proverbial "shaft." I think a LRO would work if a trademark owner could prove a likelihood of confusion or some actual harm. I don't think you are sufficiently harmed just because someone plans to use the a generic term (that may also serve as someone's trademark) for non-infringing purposes. I would argue to you the the LRO is working perfectly, much like the UDRP works perfectly when trademark owners that can meet the high burden win. In sum, I think the system is working as it was intended. I know these results are making some trademark owners unhappy, but trademark law is basically a consumer protection statute, so a complainant should have to show some consumer harm or confusion, not the angst of a marketing department that was asleep at the wheel since June 2008. J. Scott j. scott evans - head of global brand, domains & copyright - Yahoo! Inc. - 408.349.1385 - jscottevans@yahoo.com<mailto:jscottevans@yahoo.com> ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>> To: J. Scott Evans <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> Cc: "bc-gnso@icann.org<mailto:bc-gnso@icann.org>" <bc-gnso@icann.org<mailto:bc-gnso@icann.org>> Sent: Sunday, August 4, 2013 8:14 PM Subject: Re: [bc-gnso] FW: New ICA Post on the LRO I don't disagree, and never said they were. Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/Cell Twitter: @VLawDC "Luck is the residue of design" -- Branch Rickey Sent from my iPad On Aug 4, 2013, at 10:51 PM, "J. Scott Evans" <jscottevans@yahoo.com<mailto:jscottevans@yahoo.com>> wrote: I am not so sure any of these cases were wrongly decided. Sent from Yahoo! Mail for iPhone ________________________________ From: Phil Corwin <psc@vlaw-dc.com<mailto:psc@vlaw-dc.com>>; To: bc-gnso@icann.org<mailto:bc-gnso@icann.org> <bc-gnso@icann.org<mailto:bc-gnso@icann.org>>; Subject: [bc-gnso] FW: New ICA Post on the LRO Sent: Sun, Aug 4, 2013 10:05:16 PM FYI/BC members may find my latest opinion piece of some interest--- http://internetcommerce.org/LROlooksDOA LRO Looks DOA The Legal Rights Objection (LRO) mechanism administered by the World Intellectual Property Organization (WIPO) on behalf of ICANN is starting to look like the reverse FISA Court of domain name system (DNS) rights protection mechanisms (RPMs) at the top level. In FISA Court, the government always wins - at WIPO, the LRO complainant always loses. The FISA Court is of course the venue in which the U.S. government requests a surveillance warrant against a suspected foreign intelligence agent and is never denied (well, almost never - since the process started in 1979, 11 requests have been denied out of a total of 33,942 received through the end of 2012[1]<https://us-mg6.mail.yahoo.com/neo/#_ftn1>). FISA Court proceedings are secret and non-adversarial, with only government lawyers presenting arguments. In contrast, the decisions resulting from LRO proceedings are published, and both complainant and respondent have equal ability to present their arguments. Yet, as of Friday, August 2nd all 28 of the decided LRO complaints, out of a total of 69 filed, resulted in losses for the complainants[2]<https://us-mg6.mail.yahoo.com/neo/#_ftn2>. The lopsided results arouse suspicions that trademark interests may have been fighting the last war and too intensely focused on potential cybersquatting at the second level (a concern that we believe is overblown due to the low traffic prospects for many new gTLDs). They consequently sought and obtained the Trademark Clearinghouse (TMC), Uniform Rapid Suspension (URS) RPMs - and also proposed other second level remedies such as a Global Protected Marks List (GPML) that ICANN did not grant. Yet they may have failed to adequately consider whether top level protections were sufficient, and in particular whether the threshold standard for successfully prosecuting a LRO was unattainably high. As Thomas O'Toole observed in an excellent analysis recently posted on Bloomberg BNA's E-Commerce and Tech Law Blog[3]<https://us-mg6.mail.yahoo.com/neo/#_ftn3>: [T]he only surprise the future might hold is the faint prospect that a WIPO panelist might actually rule in favor of a trademark owner...The biggest lesson so far has been that the Legal Rights Objection process is wholly ineffective for trademark owners seeking to knock down proposed domains containing generic strings. In many cases, companies owning marks for terms such as EXPRESS, HOME, VIP, LIMITED, MAIL, TUNES have lost LROs to domain applicants with no intellectual property rights in those terms whatsoever. Pinterest's failed challenge to Amazon's proposed .pin domain was particularly ominous for mark owners, because Amazon seems pretty clearly to be moving in on Pinterest's business... The reason for this dour outlook can be found in passages from two early LRO rulings: the first one, Right at Home v. Johnson Shareholdings Inc., No. LRO2013-0300 (WIPO, July 3, 2013); and the second, my favorite, Express LLC v. Sea Sunset LLC, No. LRO2013-0022 (WIPO, July 9, 2013)... In Right at Home, panelist Robert A. Badgley offered the first interpretation of key terms in Section 3.5 of ICANN's New gTLD Applicant Guidebook<http://newgtlds.icann.org/en/applicants/agb>. The guidebook uses highly qualified language, directing LRO panelists to decide whether the proposed new domain "takes unfair advantage" of the trademark owner's rights, or "unjustifiably impairs" the value of the mark, or creates an "impermissible likelihood of confusion" between the mark and the proposed domain. In Badgley's view, this language creates a very high burden for trademark-based objections...Obviously, it is going to be very difficult for any trademark owner to demonstrate that a proposed domain is so fishy it satisfies the "something untoward ... if not to the level of bad faith" standard... The second opinion, Express LLC v. Sea Sunset LLC, was one of the better opinions (and I am including the federal court stuff that we wade through every day) I have read in a while. Panelist Frederick M. Abbott carefully summarized the arguments on each side (there are good lessons here for attorneys working on the next round of legal rights objections), and the law that he was required to apply to the dispute. When Abbott turned to the reasoning behind his decision to reject Express LCC's objection to the proposed .express top-level domain, I got that sense that this panelist was a teeny bit irked that ICANN itself had not made the hard policy choices that the LRO had just dropped in his lap. It's one thing to ask a panelist to transfer a domain name that might have cost the registrant $10 or so; and it's quite another to ask a panelist to upset an investment of at least a half-million dollars in a new top-level domain. All based on a trademark registration for a generic term, in a single market, issued by a single government entity. Abbott declined to do it... These two opinions, taken together, look like a terminal diagnosis for trademark owners with rights in generic terms. Right at Home creates a very permissive standard for what constitutes "unfair advantage" by a domain applicant. Express LLC states, almost categorically, that it is "not reasonable" to allow a trademark owner for a generic term to prevent that term from being used as a top-level domain. O'Toole goes on to speculate that a trademark owner like Express LLC will have equally poor chances of success if it attempts to block others' use of such hypothetical second level domains as clothing.express, fashion.express, or shoes.express using the traditional UDRP or the new TMC and URS RPMs -- because all of them focus on the domain name to the left of the dot and pay no heed to the gTLD to the right - and because Express holds no trademark rights in those hypothetical generic terms on the left side. We largely agree with his analysis, and suspect that this could be the next big trademark protection issue looming on ICANN's horizon as brands complain about the necessity and cost of registering relevant domains at a gTLD that matches one of its trademarks but is operated by a third party (and, by the way, it's not clear that a brand like Express would have any special "sunrise" registration priority for potential second level domains along the lines of O'Toole's speculation). Other questions arise, such as whether Federal Express should have priority rights to, or a potential infringement claim against, federal.express. Of course, no one was reckless enough to pay a $185,000 gTLD application fee, plus multiple related legal, consulting, and technical costs, to try to "squat' at the top level on a unique trademark like Google or Microsoft. But when it comes to a dictionary word like Express, unless the applicant was so clueless as to propose its use solely for fashionable clothing, the LRO is essentially useless - and that may be the correct result. Indeed, short of halting the program, it's not really clear how one can have a generic word TLD program without allowing the addition of top level domains that are identical to someone's trademark for something; and that alone is not sufficient to prove trademark infringement. Domain industry observers such as Andrew Allemann have opined that "The LRO is working just fine, thank you"[4]<https://us-mg6.mail.yahoo.com/neo/#_ftn4>, weighing in with this analysis: The LRO was created to assuage fears that someone would cybersquat on a top level domain...Objections were filed against .VIP, .mail, and .home. Now, you tell me: when you hear these terms, what brand do you think is being cybersquatted? Many of the objections were filed by competing applicants that engaged in trademark frontrunning by obtaining dubious trademarks for the string. Others, such as the United States Postal Service's objection to .mail, were based on stretched interpretations of a trademark (and that's being generous). Another industry analyst, Kevin Murphy, has just declared that he will no longer report automatically on forthcoming WIPO decisions in LRO cases, stating[5]<https://us-mg6.mail.yahoo.com/neo/#_ftn5>: The Legal Rights Objection has, I think, said pretty much everything it's going to say in this new gTLD application round. I'm feeling pretty confident we can predict that all outstanding LROs will fail. This prediction is based largely on the fact that the 69 LROs filed in this round all pretty much fall into three categories. * Front-running. These are the cases where the objector is an applicant that secured a trademark on its chosen gTLD string, usually with the dot, just in order to game the LRO process... * Brand v Brand. The objector may or may not be an applicant too, but both it and the respondent both own legit trademarks on the string in question. WIPO's LRO panelists have made it clear, most recently yesterday in Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0068.pd...>) and Merck v Merck (pdf<http://www.wipo.int/export/sites/www/amc/en/domains/lro/docs/lro2013-0069.pd...>), that having a famous brand does not give you the right to block somebody else from owning a matching famous brand as a gTLD. * Generic trademarks. Cases where an owner of a legit brand that matches a dictionary word files an objection against an applicant for the same string that proposes to use it in its generic sense. See Express v Donuts<http://domainincite.com/13691-donuts-beats-dot-brand-in-fight-over-express-g...>, for example. Panelists have found that unless there's some nefarious intent by the applicant, the mandatory second-level rights protection mechanisms new gTLD registries must abide by are sufficient to protect trademark rights. In short, the LRO may be one of many deterrents to top-level cybersquatting, but has proven itself an essentially useless cash sink if you want to prevent the use of a trademark at the top level. The impact of this, I believe, will be to give new gTLD consultants another excellent reason to push defensive gTLD applications on big brands in future new gTLD rounds. We largely agree with Murphy's analysis. There may well be a few cases in the remaining objections to be adjudicated by WIPO in which the complainant prevails. But we suspect that they will be such unique outliers that they will actually reinforce what an exceedingly narrow remedy the LRO has turned out to be. That limited utility has already led one disgruntled complainant/competing applicant to declare, "Seems the entire WIPO LRO process was set-up to fail by ICANN with the guidelines they gave the Panelists."[6]<https://us-mg6.mail.yahoo.com/neo/#_ftn6> And, as Murphy observes, filing a LRO with WIPO is not inexpensive. Total filing fees for a single objection to a single new gTLD application can range from $10,000 for a single-expert panel, and up to $23,000 for a 3-expert panel[7]<https://us-mg6.mail.yahoo.com/neo/#_ftn7>. On top of the fees there are of course legal costs for the attorney preparing the complaint and related expenses for amassing documentation. If the LRO continues to be a preordained shutout for complainants then it is unlikely that it will be used very much at all in the second round of gTLD applications unless significant - and undoubtedly controversial - changes are made in the adjudication standard to give complainants a higher probability of prevailing. As for the other objection procedure available to third parties, the Community Objection[8]<https://us-mg6.mail.yahoo.com/neo/#_ftn8> administered by the International Centre for Expertise of the ICC (International Chamber of Commerce), no judgment can yet be rendered on its efficacy because the Center has yet to issue a single decision on the dozens of cases[9]<https://us-mg6.mail.yahoo.com/neo/#_ftn9> filed with it. However, with standing limited to established institutions associated within a clearly defined community objectors first have to surmount that procedural hurdle, and then make the string substantive case that there is substantial opposition to the gTLD application from a significant portion of the community to which the gTLD string may be explicitly or implicitly targeted. Additionally, complaints were voiced at the recent Public Forum in Durban that ICC fees[10]<https://us-mg6.mail.yahoo.com/neo/#_ftn10> , which begin at 17,000 Euro but can quickly mount given the 450 Euro hourly rate for expert arbitrators, are not affordable for many community organizations. Summing up, the LRO may well have been an effective deterrent against applications for unique trademarked terms but has so far been useless in regard to applications for generic word trademarks, regardless of the trademark's strength and legitimacy. Its lack of general applicability also seems to be setting up a series of second level domain disputes that may well be outside the existing scope of the UDRP, URS, TMC, or other available rights protection and prioritization mechanisms. All of this may lead to further debate within ICANN on the appropriate scope of trademark rights protections- as well as litigation being filed by unsuccessful complainants who refuse to take WIPO's decision as the final judgment on their claims. The clear lesson to brand owners of generic word trademarks is this: If and when the second round of new gTLD applications commences, if you wish to own your trademark at the top level of the DNS (or at least stop others from owning it) you had better open your wallet and apply for it. That compulsion toward unwanted defensive registrations is almost sure to generate further controversy amid charges that ICANN has developed a Midas Touch-like mechanism for generating perpetual revenues for application and use fees for the protection of dictionary words. Of course, the inflow of defensive applications for generic word trademarks could be a mere trickle compared to the potential surge of defensive and offensive applications for non-trademarked generic words if ICANN ultimately spurs the Governmental Advisory Committee (GAC) advice to prohibit "closed generic" gTLDs unless they satisfy a high public interest standard. In that scenario, every company of any heft will have to seriously consider gTLD applications for the major language words describing its key activities and products, lest a competitor do so first and lock them away. But that's an issue falling outside any trademark protection debate and a discussion for another day. [1]http://en.wikipedia.org/wiki/FISA_Court [2]http://www.wipo.int/amc/en/domains/lro/cases/ [3]http://www.bna.com/icann-legal-rights-b17179875369/ [4]http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]http://www.wipo.int/amc/en/domains/lro/fees/ [8]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... Philip S. Corwin, Founding Principal Virtualaw LLC 1155 F Street, NW Suite 1050 Washington, DC 20004 202-559-8597/Direct 202-559-8750/Fax 202-255-6172/cell Twitter: @VlawDC "Luck is the residue of design" -- Branch Rickey ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- You received this message because you are subscribed to the Google Groups "ICA Mail" group. To unsubscribe from this group and stop receiving emails from it, send an email to ica-mail+unsubscribe@googlegroups.com<mailto:ica-mail%2Bunsubscribe@googlegroups.com>. To post to this group, send email to ica-mail@googlegroups.com<mailto:ica-mail@googlegroups.com>. Visit this group at http://groups.google.com/group/ica-mail. To view this discussion on the web visit https://groups.google.com/d/msgid/ica-mail/8E84A14FB84B8141B0E4713BAFF5B84E0.... For more options, visit https://groups.google.com/groups/opt_out. ________________________________ [1]<https://us-mg6.mail.yahoo.com/neo/#_ftnref1> http://en.wikipedia.org/wiki/FISA_Court [2]<https://us-mg6.mail.yahoo.com/neo/#_ftnref2> http://www.wipo.int/amc/en/domains/lro/cases/ [3]<https://us-mg6.mail.yahoo.com/neo/#_ftnref3> http://www.bna.com/icann-legal-rights-b17179875369/ [4]<https://us-mg6.mail.yahoo.com/neo/#_ftnref4> http://domainnamewire.com/2013/08/01/the-lro-is-working-just-fine-thank-you/ [5]<https://us-mg6.mail.yahoo.com/neo/#_ftnref5> http://domainincite.com/13949-thats-all-folks-no-more-lro-news [6]<https://us-mg6.mail.yahoo.com/neo/#_ftnref6> http://www.thedomains.com/2013/07/31/constantinos-roussos-of-dotmusic-limite... [7]<https://us-mg6.mail.yahoo.com/neo/#_ftnref7> http://www.wipo.int/amc/en/domains/lro/fees/ [8]<https://us-mg6.mail.yahoo.com/neo/#_ftnref8> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/in... [9]<https://us-mg6.mail.yahoo.com/neo/#_ftnref9> http://www.iccwbo.org/WorkArea/DownloadAsset.aspx?id=19327354883 [10]<https://us-mg6.mail.yahoo.com/neo/#_ftnref10> http://www.iccwbo.org/products-and-services/arbitration-and-adr/expertise/ic... ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com/> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 -- Andy Abrams | Trademark Counsel Google | 1600 Amphitheatre Parkway, Mountain View, CA 94043 (650) 669-8752<https://www.google.com/voice#phones> ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13 ________________________________ No virus found in this message. Checked by AVG - www.avg.com<http://www.avg.com> Version: 2013.0.3392 / Virus Database: 3209/6545 - Release Date: 08/02/13
participants (7)
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Andy Abrams -
Chris Chaplow -
J. Scott Evans -
Mari Jo Keukelaar -
Marilyn Cade -
Phil Corwin -
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