Client Memo

TO: All IP Protector Clients

CLIENT ALERT! - The IP Claim for the .BIZ tld, A False Sense of Security.

Based upon our research, we believe that filing an IP Claim for .BIZ domain names is essentially meaningless. We have outlined some of the reasons in the following Client Alert.

1. The IP Claim process does not give the claimant any priority over the ultimate registration nor does it prevent, in any way, the potential registrant from registering the domain name. The only thing it causes is an email notification to be sent to the potential registrant who tries to register an exact representation of your trademark stating that the registrant potentially could be infringing your intellectual property rights.

This supposedly gives the potential registrant the opportunity to back out of registering the domain name. While this may sound appealing, the behavior does not fit the characteristics of cyber-squatters. We have found that persons who attempt to register exact representations of company names and trademarks know that they are doing something improper, whether or not they know the technical name is "infringement." An email notification that the registration "may" be infringing someone else's rights would do very little, if anything, to alleviate the problem of cyber-squatting.

2. The IP Claim only applies to exact representations of your trademarks in domain names. An IP Claim String is automatically created based on the trademark you provide. The IP Claim String is the trademark plus the extension .biz. For example, if you claimed intellectual property rights to YOURTRADEMARK, the IP Claim string would be YOURTRADEMARK.BIZ. Thus, domain names like YOURTRADEMARKPARTS.BIZ would not be covered by the IP Claim for "YOURTRADEMARK."

3. Neulevel, the company in charge of the .BIZ tld, claims that by filing an IP Claim you have access to the Start-up Trademark Opposition Policy ("STOP") which has a lower burden of proof than the traditional Uniform Dispute Resolution Policy (UDRP). Pursuant to the STOP, the three elements you must prove are: (1) the domain name is identical to a trademark or service mark in which the Claimant has rights; (2) the domain name is identical to a trademark or service mark in which the Claimant has rights; and (3) the domain name has been registered or is being used in bad faith. The first two elements are identical to the UDRP. Neulevel claims that the use of "or" in the third element rather than "and" as it is stated in the UDRP is critical.

This is not the case because under the UDRP, you can prove "bad faith registration and use" by demonstrating that the registrant "registered the domain name in order to prevent the owner of the trademark or service mark from reflecting the mark in a corresponding domain name." Moreover, numerous UDRP Decisions, including those IP Protector has won, state that bad faith use covers mere registration of a domain name (passive use). Furthermore, once a registrant has registered the infringing domain, you still have to go through the process of filing a complaint, including paying all the fees, with an ICANN-approved arbitrator to recover it should that be necessary.

Summary

We do not believe that the new tlds will come close to the popularity of the original three tlds, .COM, .NET and .ORG. If you are intent on filing IP Claims for the .BIZ domains, we will do this for you. However, you must recognize that it gives you false sense of protection. The focus should be on ensuring the registration of the domains in the new tlds. To do this, you must pre-register the domain names you wish to register in as many pre-registration services as possible. Neulevel has stated that it will randomly register domains from these queues to ensure fairness. Therefore, the more you pre-register, the better your chances of ultimately registering the domain names. Moreover, rather than getting caught up in registering many different domain names, you should only register those domain names readily associated with your company. This would include the main trademarks, such as your company name, along with the slogans, and product names. You should also consider registering domain names incorporating combinations of these marks, in addition to these marks followed by the term "parts."

Please do not hesitate to contact IP Protector if you have any questions or comments regarding this Client Alert. This Client Alert is provided solely for IP Protector Clients and may not be reproduced or disseminated without the express permission of IP Protector.  

 

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