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Study supports domain name dispute rules

OUT-LAW News, 14/01/2002

A study of the international rules for deciding most domain name disputes has concluded that they are fair and free of major flaws. However, it has also identified some ambiguities in the rules which need clarification.

Of 700 UDRP cases studied by the Max Planck Institute for Foreign and Informational Patent, Copyright and Competition Law, 76% resulted in transfers of domain names from their owners to those bringing the claims. In 21% of cases, the domain name owners prevailed. This was not considered a flaw in the system – it is to be expected that cases will only be brought if the party paying the fee has an expectation of success.

The Institute's report identified some ambiguities in the UDRP. In particular, it has called for clarification of the conditions under which a domain name is found to be "confusingly similar" to a trade mark; the measures to be taken to safeguard the interests of free speech; and the rules concerning the burden of proof and the standards to be applied in the assessment of the parties' contentions. It has also asked for an investigation into the possibility of setting up an appeals system. At present, appeals must be taken to courts.

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