ARTICLE
16 June 2009

Cybersquatting Reaches Record High

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CMS Cameron McKenna Nabarro Olswang

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The number of domain name cases resolved by the World Intellectual Property Organisation has reached an all-time high, according to recent statistics.
Poland Intellectual Property

The number of domain name cases resolved by the World Intellectual Property Organisation has reached an all-time high, according to recent statistics.

A total of 2,239 complaints were filed in 2008, 8% more than in 2007. Of these, 79% concerned .com domains, and 13% concerned country-code top-level domains (up from 7% in 2007).

Approximately a third of all cases filed with WIPO in 2008 were settled before the panel decision stage, and 85% of the remainder were settled in favour of the complainant.

The number of domain name disputes heard in Poland is also increasing. Since it was set up in 2003, the Arbitration Court at the Polish Chamber of IT and Telecommunications (PIIiT) has received only 419 claims relating to .pl domain names where one or both parties were Polish. Of these, 62 were resolved by mediation (4 in 2008) and 357 were referred to arbitration.

According to figures made available on the PIIiT's website, the number of cases in which a ruling wasn't passed increased from 20 in 2007 to 25 in 2008. In addition, the number of cases that weren't initiated for reasons such as failure to sign the arbitration agreement remained high in these years. These figures show that cybersquatters are increasingly refraining from actively defending the domains they have registered. This leads to termination of their registration agreements with NASK, the national authority, and release of the domain in question.

This can cause problems, as the released domains become available on a 'first come, first served' basis, with no priority for the trade mark holder involved in the dispute. However, practical solutions can be found to allow trade mark rights holders to recapture their domains and resolve other issues arising in disputes with cybersquatters.

The figures also show that a significant number of cases are abandoned without resolution. This may be due to economic factors or other reasons such as difficulties in obtaining conclusive evidence. As cybersquatters become more experienced and wary, IP right holders and their advisers must also develop new strategies to ensure they are successful in regaining their domains

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 15/06/2009.

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