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1. Domain Name Disputes: Challenges for Legal Fraternity.
If necessity is mother of invention, then scarcity is father of all disputes. History testifies that scarcity of any kind of property has given rise to disputes. Historically, the character of property has changed over the years- crop, cattle, land, goods and recently intellectual property (copyright, designs, patents and trademarks). Now the burgeoning growth of Internet users and online commerce has given rise to new scarcity-domain names-creating a newer kind of disputes. It is the resolution, prevention, settlement, compensation and damages involved in such disputes that are of concern and interest to legal fraternity.
Each computer/ server has it's own Internet Protocol (IP) address. The IP address is all numeric, e.g. 123.232.233.443. All numeric addresses are not catchy and are difficult to remember. This has led to the development of the Domain Name System ("DNS"). A DNS allocates a name for all numeric IP address. A DNS name is easy to memorize, cite and learn. In U.S. it is a responsibility of Government Agency -INTERNIC- to allocate a Domain Name to an IP address. INTERNIC has further delegated the administration and procedure for registration of domain names to a private Company- Network Solutions Inc (NSI). NSI works on the premises that it merely provides domain name to various IP addresses. It has no responsibility to perform trademark searches, arbitrate or have any financial stake or liability in any dispute. It only takes an undertaking from a registrant that the name does not interfere or infringe rights of any third party. NSI, thus, allocates the domain name on the basis of first-cum-first allocation policy.
The policy of first-cum-first basis of allocation of domain names has given rise to new kind of offence- cybersquatting or e squatting. Recently, a 21-year-old boy sold the domain name "drugs.com" for $8,23,000/- and the domain name "business.com" was sold for $7.5 million. These kinds of cases resulted in Internet Corporation for Assigned Names and Numbers (ICNAN) to formulate Uniform Domain Name Dispute Resolution Policy. Its administrative centers now provide speedy redressal. A complaint can be filed where the domain name is the same as or is confusingly same to trade mark. The procedure will be mostly online and would take less than 45 days, and is expected to cost about $1000/- only. The parties to the dispute or to contest can appeal to the court. Every ICANN-accredited registrar has agreed to adhere to the dispute-resolution policies that ICANN adopts under its established consensus procedures.
US Congress has also approved the law to combat abusive speculation, or cybersqatting in Internet names. Known as, Trademark Cyberpiracy Prevention Act, it targets people who apply for an Internet address in a company's name with no other intentions but to sell it to the company for a big profit. With coming of anti-cybersquatting law in US, more and more, cases seem to be now settling. Recently NASDAQ Stock Market found itself in paradoxical position, when its plans to expand into Europe got delayed due to an alleged cyber-squatter, who had registered Nasdaqeurope.com and Nasdaqeurope.net. Daltacross Limited, a British Company that had registered the name two years ago relinquished these names and settled before a federal judge.
Experts' say the new law passed by US congress has drastically changed the landscape for so- called cybersquatters. It has encouraged companies to become less willing to make big payments to speculators for Internet domain names and become more inclined to take their cases to Court. The people who speculate in Internet names are quick to settle now and avoid a court fight.
In India also the Courts have now been active in granting injunctions on the use of well-known trademarks. The Indian Courts have passed an interim injunction in favour of Plaintiff in the cases relating to Yahooindia.com, CitibankIndia.com, JRDTata.com, RatanTata.com, Britishtelecom.co.uk, Marksandspencer.co.uk and EscortsIndia.com. In one of the cases in which author himself is representing parties to the suit, the Hon'ble Delhi High Court was pleased to pass an ex-parte injunction in favour of the Plaintiff restraining Respondent the use of domain name "bisleri.com". However, these order only injuncted the Respondents against the use of these domain names and do not evict the Respondent from these domains. It will only be known after the final decisions of these cases, whether the Plaintiff is able to possess these domain names as desired result of these cases.
As cyber arena gets more and more crowded and the property called -domain name- gets scarce day by day, the legal community is faced with ever-increasing challenge in terms of continuously developing new laws and amending existing laws.
If necessity is mother of invention, then scarcity is father of all disputes. History testifies that scarcity of any kind of property has given rise to disputes. Historically, the character of property has changed over the years- crop, cattle, land, goods and recently intellectual property (copyright, designs, patents and trademarks). Now the burgeoning growth of Internet users and online commerce has given rise to new scarcity-domain names-creating a newer kind of disputes. It is the resolution, prevention, settlement, compensation and damages involved in such disputes that are of concern and interest to legal fraternity.
Each computer/ server has it's own Internet Protocol (IP) address. The IP address is all numeric, e.g. 123.232.233.443. All numeric addresses are not catchy and are difficult to remember. This has led to the development of the Domain Name System ("DNS"). A DNS allocates a name for all numeric IP address. A DNS name is easy to memorize, cite and learn. In U.S. it is a responsibility of Government Agency -INTERNIC- to allocate a Domain Name to an IP address. INTERNIC has further delegated the administration and procedure for registration of domain names to a private Company- Network Solutions Inc (NSI). NSI works on the premises that it merely provides domain name to various IP addresses. It has no responsibility to perform trademark searches, arbitrate or have any financial stake or liability in any dispute. It only takes an undertaking from a registrant that the name does not interfere or infringe rights of any third party. NSI, thus, allocates the domain name on the basis of first-cum-first allocation policy.
The policy of first-cum-first basis of allocation of domain names has given rise to new kind of offence- cybersquatting or e squatting. Recently, a 21-year-old boy sold the domain name "drugs.com" for $8,23,000/- and the domain name "business.com" was sold for $7.5 million. These kinds of cases resulted in Internet Corporation for Assigned Names and Numbers (ICNAN) to formulate Uniform Domain Name Dispute Resolution Policy. Its administrative centers now provide speedy redressal. A complaint can be filed where the domain name is the same as or is confusingly same to trade mark. The procedure will be mostly online and would take less than 45 days, and is expected to cost about $1000/- only. The parties to the dispute or to contest can appeal to the court. Every ICANN-accredited registrar has agreed to adhere to the dispute-resolution policies that ICANN adopts under its established consensus procedures.
US Congress has also approved the law to combat abusive speculation, or cybersqatting in Internet names. Known as, Trademark Cyberpiracy Prevention Act, it targets people who apply for an Internet address in a company's name with no other intentions but to sell it to the company for a big profit. With coming of anti-cybersquatting law in US, more and more, cases seem to be now settling. Recently NASDAQ Stock Market found itself in paradoxical position, when its plans to expand into Europe got delayed due to an alleged cyber-squatter, who had registered Nasdaqeurope.com and Nasdaqeurope.net. Daltacross Limited, a British Company that had registered the name two years ago relinquished these names and settled before a federal judge.
Experts' say the new law passed by US congress has drastically changed the landscape for so- called cybersquatters. It has encouraged companies to become less willing to make big payments to speculators for Internet domain names and become more inclined to take their cases to Court. The people who speculate in Internet names are quick to settle now and avoid a court fight.
In India also the Courts have now been active in granting injunctions on the use of well-known trademarks. The Indian Courts have passed an interim injunction in favour of Plaintiff in the cases relating to Yahooindia.com, CitibankIndia.com, JRDTata.com, RatanTata.com, Britishtelecom.co.uk, Marksandspencer.co.uk and EscortsIndia.com. In one of the cases in which author himself is representing parties to the suit, the Hon'ble Delhi High Court was pleased to pass an ex-parte injunction in favour of the Plaintiff restraining Respondent the use of domain name "bisleri.com". However, these order only injuncted the Respondents against the use of these domain names and do not evict the Respondent from these domains. It will only be known after the final decisions of these cases, whether the Plaintiff is able to possess these domain names as desired result of these cases.
As cyber arena gets more and more crowded and the property called -domain name- gets scarce day by day, the legal community is faced with ever-increasing challenge in terms of continuously developing new laws and amending existing laws.