While the coronavirus has adversely impacted countless people and businesses worldwide, it has done nothing — at least, not yet — to slow down trademark owners from pursuing cybersquatters, according to early data from one of the leading service providers under the Uniform Domain Name Dispute Resolution Policy (UDRP).
Complaints Up 27.4%
At the Forum (formerly the National Arbitration Forum), 182 UDRP proceedings were commenced in March 2020, the busiest month in the first quarter of the year. By comparison, 121 proceedings were commenced in January, and 172 proceedings were commenced in February. Perhaps even more significantly, the March data indicate that UDRP filings were up 27.4 percent (from 132 proceedings) from the same month last year.
A “commencement” date in a UDRP proceeding represents the date on which a UDRP service provider (such as the Forum) completes its initial responsibilities in connection with sending a complaint to the alleged cybersquatter. It is probably the best indicator of current UDRP activity — unlike decisions, which reflect complaints filed during an earlier period of time.
The Forum is the second most-active of the six ICANN-approved UDRP service providers and the only one that provides ready access to UDRP proceedings by commencement date. However, it is likely that trends at the Forum are also applicable to the other UDRP service providers, including the World Intellectual Property Organization (WIPO), which is the leading provider.
While it’s certainly too early to know whether this increase in UDRP filings will continue, the data are consistent with the rising number of domain name disputes in recent years, including an all-time record in 2019, when the number of complaints filed at WIPO climbed for the sixth consecutive year.
The increase in domain name dispute filings in March 2020 comes even while other trademark entities are slowing down or canceling their services due to the coronavirus. For example:
The International Trademark Association (INTA) announced in February that it was relocating its annual meeting from Singapore in April to a U.S. location this summer, then later further rescheduled the meeting for November.
ICANN cancelled its public meeting earlier this month that was to be held in Cancun, Mexico, instead holding it for the first time via remote participation only.
And the United States Patent and Trademark Office closed its offices to the public, changed its meeting practices, and extended deadlines.
Fortunately, despite many coronavirus disruptions, the UDRP service providers are able to continue providing their domain name dispute services for trademark owners.
Trademark Owners Stay Vigilant
Trademark owners would be wise not to let the obvious stress and demands of the coronavirus distract them from the importance of pursuing cybersquatters, whose illegal activities are not directly deterred by a global pandemic that is forcing most people to stay at home (where, by the way, it is just as easy to register domain names as anywhere else). Some cybersquatters even see new “opportunities” created by the virus, by targeting trademark owners in novel ways.
Indeed, time will tell if the economic crisis caused by the coronavirus actually leads to an increase in overall domain name registrations and abuses, given that cybersquatting can be a low-investment activity with a potentially high reward, pursued from home.
As a result, while trademark owners may be adversely affected by the economy, they should increase their focus on pursuing cybersquatters through the UDRP and other domain name dispute policies. Doing so will help them protect their vulnerable consumers in the short-term and safeguard their valuable brands for the long-term.
