Are six-figure domain names a risky investment?


Over the last few years I think it’s safe to say that the domain industry has seen some pretty terrible UDRP decisions. For any of my blog readers who don’t know what a UDRP is, here’s a quick primer:

UDRP is an acronym for Uniform Dispute Resolution Policy.

All ICANN-accredited registrars follow a uniform dispute resolution policy. Under that policy, disputes over entitlement to a domain-name registration are ordinarily resolved by court litigation between the parties claiming rights to the registration. Once the courts rule who is entitled to the registration, the registrar will implement that ruling. In disputes arising from registrations allegedly made abusively (such as “cybersquatting” and cyberpiracy”), the uniform policy provides an expedited administrative procedure to allow the dispute to be resolved without the cost and delays often encountered in court litigation. In these cases, you can invoke the administrative procedure by filing a complaint with one of the dispute-resolution service providers.

Three criteria must be met to prove a UDRP:
1. The first is that the domain name must be identical or confusingly similar to a trademark in which the complainant has right.
2. The second is that the registrant has no rights or legitimate interests in the domain name.
3. And then the third is that the registrant registered and used the domain name in bad faith.

Domain names are transferred ten days after a UDRP case has been decided, where a decision is made to transfer the domain name to the complainant.



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