preparing for hurricane icann: practical tips for brandowners

PREPARING FOR HURRICANE ICANN

JONATHON K. HANCE

INTELLECTUAL PROPERTY ASSOCIATE

PRACTICAL TIPS FOR BRAND OWNERS

Intellectual Property Section Monthly LunchAugust 21, 2009

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ICANN AND THE DOMAIN NAME SYSTEM

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ICANN AND THE DOMAIN NAME SYSTEMWHAT IS ICANN?

• ICANN => Internet Corporation for Assigned Names and Numbers

• Non-profit corporation headquartered in Marina Del Rey, California

• Primary ICANN Tasks:– Internet Protocol (IP) address space allocation– Top-level domain name system management– Root server management

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ICANN AND THE DOMAIN NAME SYSTEMNAVIGATING THE INTERNET

www.bgllp.com

Top-Level

Domain NameThird-Level

Domain NameSecond-LevelDomain Name

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ICANN AND THE DOMAIN NAME SYSTEMgTLDs

.com .net .org

.biz

• 21 currently active gTLDs (generic Top-Level Domain names)

.gov

• 7 of these 21 gTLDs were added around year 2000 in an attempt to alleviate domain name demand

.info .name .museum

.edu .mil .mobi

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ICANN AND THE DOMAIN NAME SYSTEMccTLDs

.tv (Tuvula) .fm (Federated States of Micronesia)

.mx.hk

• ccTLDs are typically used or reserved for a country

• ccTLDs are two letters long, and all two letter top-level domain names are ccTLDs

.ca.uk .fr .us• Some smaller countries have licensed their respective ccTLDs for worldwide

commercial use

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ICANN AND THE DOMAIN NAME SYSTEMSECOND-LEVEL DOMAIN NAMES

.google.com

• Second-level or lower-level domain names are directly to the left of top-level domain names

• Organizations and individuals can purchase (or register) second-level domain names with ICANN authorized registrars for a small fee

.microsoft.com

.apple.com

.bgllp.com

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ICANN AND THE DOMAIN NAME SYSTEMTHIRD-LEVEL DOMAIN NAMES

www.google.com (Google Search)

• Third-level domain names further specify a particular website or services within a second-level domain name

• Third-level domain names are typically administered by owners of the corresponding second-level domain names

mail.google.com (Google Mail)

m.google.com (Google Mobile)

maps.google.com (Google Maps)

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ICANN AND THE DOMAIN NAME SYSTEMNAVIGATING THE INTERNET

www. bgllp. comLocal DNS ServerQ: Where is .com?A: Try root DNS

Root DNS ServerQ: Where is .com?A: Try .com gTLD server

.COM gTLD ServerQ: Where is .com?A: Found it!Q: Where is .bgllp.com?A: Try 2nd-Level DNS

2nd Level DNS ServerQ: Where is .bgllp.com?A: Found it!Q: Where is www.bgllp.comA: Try 3rd-Level DNS

3rd Level DNS ServerQ: Where is www.bgllp.com?A: Found it!

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THE BREWING ICANN STORM

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THE BREWING ICANN STORMNEW DOMAIN NAME STRUCTURE

• ICANN's 35th Annual Public Meeting discussed proposals for releasing hundreds of new gTLDs into the public marketplace over the next two years

• ICANN plans to launch new gTLDs starting early 2010

• New gTLDs could include:– Brand-specific domain names: .MYCOMPANY– Geographic-centric domain names: .TEXAS– Generic domain names: .SOFTWARE

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THE BREWING ICANN STORMDOMAIN NAME ABUSE

• Cybersquatting:

1. Registering, trafficking in, or using a domain name with

2. Bad faith intent to profit from the goodwill of a trademark

• Domain name abuse:

1. Low overhead business

2. Low overheads

3. Few risks and barriers to entry

• New gTLDs will provide additional opportunities for cybersquatters

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THE BREWING ICANN STORMTIPS FOR STORM PROTECTION

1. Monitor the Strength of the Storm

2. Board-up & Tarp Trademarks

3. Create a Disaster Supply Kit

4. Prepare to Clean Up Any Damage

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MONITOR THE STRENGTH OF THE STORM

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MONITOR THE STORM CATEGORYTROPICAL DEPRESSION

• TROPICAL DEPRESSION FORECAST: The new gTLDs may have little desirability and may lack significant commercial value

– Late 2000, ICANN introduced seven new domains to lessen demand for .COM

– Demand for .COM remains high

– .BIZ is only the 5th most popular gTLD

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MONITOR THE STORM CATEGORYTROPICAL DEPRESSION

Percentage of Active Domain Names in each

of the Top 5 gTLDs

81,730,128 registered .COM domains

2,039,805 registered .BIZ

domains

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MONITOR THE STORM CATEGORYTROPICAL DEPRESSION

• In the first six months of 2009, 7 .COM domain names were purchased for sums over $1 million

– TOYS.COM: $ 5.1 Million– CANDY.COM: $ 3.0 Million– ePREGNANCY.COM: $ 2.2 Million– FLY.COM: $ 1.8 Million– AUCTION.COM: $ 1.7 Million– AD.COM: $ 1.4 Million– WEBCAM.COM: $ 1.0 Million

TOTAL: $ 16.2 Million

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MONITOR THE STORM CATEGORYCATEGORY 5 HURRICANE

• CATEGORY 5 HURRICANE FORECAST: The new gTLDs will be valuable, especially as marketing tools and when used with social networking communities

– Internet Advancements:• Improved search technology• Less reliance on key words and correctly-typed domain

names• Web 2.0 Communities on the rise

– New gTLDs may fuel expansion of Web 2.0 communities

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MONITOR THE STORM CATEGORYCATEGORY 5 HURRICANE

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MONITOR THE STORM CATEGORYCATEGORY 5 HURRICANE

• Web-based communities, now include businesses

• Top Internet retailers establishing Web 2.0 portals

• Many Web 2.0 members are able to personalize their community URL (uniform resource locator) by registering a unique username with their community – www.facebook.com/sears– www.linkedin.com/MySears

• Businesses starting own Web 2.0 communities– www.mysears.com

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BOARD-UP & TARP TRADEMARKS

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BOARD-UP & TARP TRADEMARKSTRADEMARK PROTECTION MEASURES

• Trademark owners concerned over gTLD expansion

• March 6, 2009, ICANN authorized Implementation Resolution Team (IRT) to proposed Trademark Protection Measures

• Proposed Trademark Protection Measures:– IP Clearinghouse

• centralized storage of trademark data– Globally Protected Marks List (GPML)

• "white list" with strict membership requirements– Uniform Rapid Suspension System (to be discussed in next section)

• extra-judicial protection mechanism

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BOARD-UP & TARP TRADEMARKSIP CLEARINGHOUSE

FACTS:

• Collect trademark information from brand owners

• Serve as a central information source for new gTLDs

• Trademark data submitted by trademark owners to the IP Clearinghouse along with an annual maintenance fee

• IP Clearinghouse required to validate trademark rights and use the validated data to establish and manage the Globally Protected Marks List

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BOARD-UP & TARP TRADEMARKSIP CLEARINGHOUSE

TIPS:

• Take a trademark inventory

• Verify the accuracy of trademark data

• Submit trademark data to the IP Clearinghouse

• Pay fee to join the IP Clearinghouse, if any, and renew membership each year, if necessary

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BOARD-UP & TARP TRADEMARKSGLOBALLY PROTECTED MARKS LIST

FACTS:

• Applications for a domain name matching trademark on GPML initially denied

• White List Membership: trademark must be associated with a certain number of national trademark registrations that have issued in at least a certain number of countries across five ICANN regions

• ICANN Regions:

1. North America

2. Latin America / Caribbean Islands (includes Mexico)

3. Europe (includes Russia)

4. Asia / Australia / Pacific (includes Middle East)

5. Africa

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BOARD-UP & TARP TRADEMARKSGLOBALLY PROTECTED MARKS LIST

TIPS:

• Immediately seek registration of brands, common law trademarks, and company names in at least one country in each ICANN region

• Expand business presence internationally

• Join Web 2.0 communities and sign-up for a personalized URL

• Register brand-related domain names on currently existing gTLDs and ccTLDs

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BOARD-UP & TARP TRADEMARKSUNIFORM RAPID SUSPENSION SYSTEM

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CREATE A DISASTER SUPPLY KIT

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BOARD-UP & TARP TRADEMARKSCREATE A DISASTER SUPPLY KIT

• Some of the new gTLDs may become scarce and valuable

• EX: .COM domain names have become increasingly valuable

• Others of the new gTLDs will be in low demand– EX: .BIZ is cheap, in low demand, and not highly adopted

EPREGNANCY.COM sold for $ 2.2 Million EPREGNANCY.BIZ is available for sale for under $ 35.00

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BOARD-UP & TARP TRADEMARKSCREATE A DISASTER SUPPLY KIT

• Stock up on supplies to weather the storm– Purchase and evaluate popularity of domain names on new

gTLDs– Use Internet traffic monitoring tools– Renew popular domain names and let others expire

• Meet Your Neighbors– Join Web 2.0 Communities– Obtain personalized domain names and URLs

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BOARD-UP & TARP TRADEMARKSCREATE A DISASTER SUPPLY KIT

EXAMPLE:• A Texas-based Internet Jeweler may want to register domain

names such as:– MYCOMPANY.JEWELRY– MYCOMPANY.DIAMONDS– MYCOMPANY.TEXAS– MYCOMPANY.SHOPPING

• The Internet Jeweler may also want to join Web 2.0 communities such as:– MYCOMPANY.COMMUNITY (personalized gTLD)

– COMMUNITY.COM/MYCOMPANY (personalized URL)

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BOARD-UP & TARP TRADEMARKSREGISTERING DOMAIN NAMES

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BOARD-UP & TARP TRADEMARKS REGISTERING DOMAIN NAMES

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BOARD-UP & TARP TRADEMARKS REGISTERING DOMAIN NAMES

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BOARD-UP & TARP TRADEMARKS REGISTERING DOMAIN NAMES

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BOARD-UP & TARP TRADEMARKS REGISTERING DOMAIN NAMES

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BOARD-UP & TARP TRADEMARKS REGISTERING DOMAIN NAMES

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BOARD-UP & TARP TRADEMARKS REGISTERING DOMAIN NAMES

56 Domains Names

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PREPARE TO CLEAN UP ANY DAMAGE

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PREPARE TO CLEAN UP ANY DAMAGEDISPUTE RESOLUTION MECHANISMS

• Dispute resolution mechanisms can fend off cybersquatters, even after Hurricane ICANN hits

• Trademark Dispute Resolution Mechanisms:– Uniform Rapid Suspension System (URS)

– Uniform Domain-Name Dispute-Resolution Policy (UDRP)

– Federal, State, or Common Law Causes of Action

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PREPARE TO CLEAN UP ANY DAMAGEURS

• Infringing domains would be placed in a frozen state for the life of the registration

• Frozen pages would only resolve to specific error page for the life of the registration

• Domain names in most cases can be registered for terms from 1 to 100 years

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PREPARE TO CLEAN UP ANY DAMAGEURS

ADVANTAGES:• Low cost, speedy decisions

DISADVANTAGES:• Trademark owner not awarded ownership of domain name

• Domain name not redirected to trademark owners website

• Trademark owners forced to institute numerous URS proceedings, one for each registration term of a domain name

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PREPARE TO CLEAN UP ANY DAMAGEUDRP

FACTS:

• UDRP is an ICANN-established process for resolution of disputes regarding registration of domain names

• UDRP applies to all .COM, .NET, .ORG, .BIZ, .INFO, .NAME, domains and some ccTLD domain names

• Elements of UDRP Complaint:– Domain name is identical or confusingly similar to a trademark

or service mark in which complainant has rights– Registrant does not have any rights or legitimate interests in the

domain name– The registrant registered the domain name and is using it in

"bad faith"

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PREPARE TO CLEAN UP ANY DAMAGEUDRP

ADVANTAGES:• Domain name ownership will be transferred to

trademark owner

• Parties may challenge a UDRP decision in court

DISADVANTAGES:• UDRP is an expensive, involved legal proceeding and uses a "bad

faith" standard

• The outcome is not certain as it may be appealed and additional challenges can be filed in both state and federal court

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PREPARE TO CLEAN UP ANY DAMAGE FEDERAL, STATE, & COMMON LAW

Federal Causes of Action:• Anticybersquatting Consumer Protection Act (15 U.S.C. §  1125(d)):

a) Bad faith intent to profit from the mark; AND

b) Uses domain name identical or confusingly similar to a mark

• Unfair Competition under Lanham Act (15 U.S.C. §  1125(a)):

a) Uses trademark in connection with goods or services

b) Is likely to misrepresent goods or cause consumer confusion

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PREPARE TO CLEAN UP ANY DAMAGE FEDERAL, STATE, & COMMON LAW

Federal Causes of Action:• Trademark Infringement under Lanham Act (15 U.S.C. § 1114(a)):

a) Uses in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark

b) In connection with the sale, offering for sale, distribution, or advertising of goods or services on or in connection

c) With which such use is likely to cause confusion, or to cause mistake, or to deceive

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PREPARE TO CLEAN UP ANY DAMAGE FEDERAL, STATE, & COMMON LAW

State & Common Law Causes of Action:• Trademark infringement or dilution under codified state law

• Common law trademark infringement, dilution, and unfair competition claims

– I.E. use of the domain name is likely to cause confusion, mistake, and deception among consumers, and will trade upon the goodwill and reputation established by the trademark owner in its mark

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ARE YOU PREPARED FOR HURRICANE ICANN?

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THE BREWING ICANN STORMARE YOU PREPARED FOR HURRICANE ICANN?

• Monitor the Strength of the Storm

• Board-up & Tarp Trademarks

• Create a Disaster Supply Kit

• Prepare to Clean Up Any Damage

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QUESTIONS

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BOARD-UP & TARP TRADEMARKSFOR MORE INFORMATION

Jonathon K. Hance

Bracewell & Giuliani, LLP

711 Louisiana Street, Suite 2300

Houston, Texas 77002-2770

jonathon.hance@bgllp.com

www.bgllp.com/hance

Phone: 713-221-1274

Fax: 713-221-2129

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