UDRP and FRESH domains?

Kate said:

Yes.

Parking a domain name, or not using it can be interpreted as lack of legitimate purpose.
A TM holder could still argue you are holding the name hostage.

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Kate said:

If someone (TM holder) launches a UDRP against you, then you'll have to demonstrate you have a legitimate purpose. Failing that, you would lose the domain.
A TM holder could also sue in court for damages. That is unlikely but it has happened on the occasion.
They are not obliged to use UDRP.

Suppose your intention is to sell the domain one day, and say there is an obvious TM issue, then it's unlikely that someone else is going to buy it if they can't use it without the risk of being UDRPed/sued...
Unless the name can be used for something else, without infringing on the rights of some other party.

So it depends. If you are buying a name with the sole purpose of selling it to the TM holder ('holding the domain hostage') it's probably not a good strategy. There has to be a more compelling reason.

Disclaimer: not qualified legal advice, just some common sense and domainer experience.

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Kate said:

If someone (TM holder) launches a UDRP against you, then you'll have to demonstrate you have a legitimate purpose. Failing that, you would lose the domain.
A TM holder could also sue in court for damages. That is unlikely but it has happened on the occasion.
They are not obliged to use UDRP.

Suppose your intention is to sell the domain one day, and say there is an obvious TM issue, then it's unlikely that someone else is going to buy it if they can't use it without the risk of being UDRPed/sued...
Unless the name can be used for something else, without infringing on the rights of some other party.

So it depends. If you are buying a name with the sole purpose of selling it to the TM holder ('holding the domain hostage') it's probably not a good strategy. There has to be a more compelling reason.

Disclaimer: not qualified legal advice, just some common sense and domainer experience.

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Puredom777 said:

Also do you know that is there any difference for the amounts of liabilities in possible court cases if the respondent is a Private person versus a Corporation? Put alltogether, in your opinion is it safe as a private person to start domaining in this way ?

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Kate said:

I am not qualified to provide legal service, the best would be to research case law.
But there is the ACPA, that in theory awards up to $100,000 in damages. Look this up.

if you live in the US, there is a significant likelihood that you will be sued at some point in your existence, because it's the land of lawyers. Everybody can be sued over anything. Divorce, business, alimony, neighborhood etc. It's not like domaining is risky, it's just a business like any other. Copyright and trademark issues predate the Internet.

On the other hand, you can't squeeze blood out of a stone. You don't sue someone who doesn't have assets. You sue a juicy target.

In general, there are warning shots fired before a UDRP or lawsuit is filed against you. You should receive a cease and desist letter, or maybe a more formal letter from a lawyer on behalf of the TM holder. So you have a chance to settle the issue.

If you don't do stupid things, the odds that you will be embroiled in a legal case are really low. I recommend that you read up the legal section at NP, there is plenty of information and many questions have been answered multiple times.

It does not happen often that a domainer is sued but it has happened.
For example:
If I remember correctly he had to pay over 50K including lawyer fees.

In a UDRP the worst that can happen is that you lose the domain. But rulings are published online and indexed by search engines. If someone (for example a prospective employer) types your name in Google they will see you are cybersquatter. There is lasting damage to your e-reputation, so domainers should always avoid being on the losing end of a UDRP. And if you lose a UDRP, it can be used as evidence of bad faith against you in a another future UDRP. It's going to put you in a weaker position from the very start even if the case is flimsy.

And even after a UDRP, whatever the outcome, the TM holder can still sue you for damages. Why not if it's convenient for them and the stakes are worth it.

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Puredom777 said:

If i register a new domain name and only keep it hosted/parked without any advertisments and i do not use it in any way i only own the domain name

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dande said:

My advice is: Try and avoid trademarked domains as much as you can. Then worry less about UDRP

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biggie said:

my question would be....

why register a domain and do nothing with it?

imo...

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