Fast Track Procedure
for Addressing .XXX Domain Name
Cybersquatting Established

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On December 5, 2011, the National Arbitration Forum (“NAF) announced the launch of the Rapid Evaluation Service (“RES”), a process designed to give trademark owners a fast track process for protecting their registered trademarks from online infringement in the just launched .XXX domain registry.  See our earlier memoranda here and here for additional information on the launch of the .XXX domain name registry.

The RES is similar to the Uniform Domain Name Dispute Resolution Policy (“UDRP”), but does not supplant it.  In particular, it applies in a narrower set of circumstances, providing an expedited remedy where there is “objectively clear abuse of well-known, distinctive registered trademarks . . . of significant commercial value, or of personal or professional names of individuals.”  Specifically, the RES will apply where:

  • the complaining party’s trademark is registered and in use;
  • the .XXX domain name subject to the dispute is identical or confusingly similar to the mark;
  • the party against whom the complaint is filed has no legitimate interest in the domain name; and
  • the .XXX domain was registered and is being used in bad faith, or if unused, is not “conceivabl[y] susceptible to use in good faith.”

Bad faith will be found where a registrant has registered an .XXX domain primarily for the purpose of selling, renting or otherwise transferring the domain name to the owner of a registered trademark, or its competitor, for an amount in excess of documented out-of-pocket expenses.  Registrants with a demonstrated pattern of abusive domain name registrations, or those who register domains to disrupt the business of the trademark owner or create confusion, will also be found to have acted in bad faith.  Under the RES Policy, typosquatting (e.g., microsfot.xxx) and combining a trademark with a generic keyword (e.g., microsoftsex.xxx) are explicitly deemed to create a likelihood of confusion.

With respect to personal names, the RES will apply where (1) the complaint is filed by a natural person or his/her agent, (2) the .XXX domain name corresponds substantially to the personal, professional or stage name of that person, and (3) the domain name has been registered “with an unlawful intent or for the apparent and demonstrated purpose of harassment or embarrassment” (although certain fair use exceptions will apply).

Under the streamlined RES procedure, an administrative review of the complaint will be completed in one day.  Within two business days thereafter, a RES evaluator will issue a preliminary decision.  Frivolous claims will be dismissed.  If the evaluator issues a preliminary decision in favor of the complainant, operations for the subject domain name may be suspended.  The domain name registrant will also be notified and given ten days to respond.  If no response is received, the evaluator’s decision will be made final.

Assuming the decision is made final, the only available remedy will be the cancellation of the domain name registration and its placement into a registry-reserved status.  The trademark owner will not be able to acquire the domain.

The NAF fee for filing an RES complaint is $1,300 per domain name.

If you discover that one of your registered marks has been registered in the .XXX domain, or would like further information about this issue, please contact Louis J. Levy (llevy@lermansenter.com, phone 202.416.6748), or any of the other attorneys in our office.

December 14, 2011

 

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This memorandum is intended only as a general discussion of these issues and should not be regarded as legal advice.

We would be pleased to provide additional details or advice about specific situations if desired.

Copyright © 2011, Lerman Senter PLLC

2000 K Street NW, Suite 600 | Washington, DC 20006-1809
tel. 202.429.8970 | fax 202.293.7783 | www.lermansenter.com

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