Lego overtakes Microsoft in cybersquatting cases

Kevin Murphy, July 22, 2011, Domain Policy

Lego has now filed more complaints against cybersquatters than Microsoft.

The maker of the popular building block toys has filed 236 cases using the Uniform Dispute Resolution Policy since 2006, the vast majority of them since July 2009.

That’s one more than Microsoft, about 50 more than Google and twice as many as Viagra maker Pfizer.

Lego has been particularly aggressive recently. As I’ve previously blogged, Lego lately files a UDRP complaint on average every three days.

The company is usually represented in these cases by Melbourne IT Digital Brand Services, the online trademark enforcement arm of the Aussie registrar.

The 236 cases equates to over $350,000 in WIPO fees alone. I’d be surprised if Lego has spent less than $1 million on UDRP cases over the last few years.

Lego has annual revenue of about $1.8 billion.

It has never lost a case. The company either wins the dispute, or the complaint is terminated before a finding is made.

It’s picked up some oddities along the way, notably including legogiraffepenis.com and legoporn.com.

Yet Lego does not appear to have the most UDRP cases under its belt. I believe that honor may go to AOL, which has filed at least 277 cases over the last decade.

What .xxx means for trademark holders

Kevin Murphy, August 26, 2010, Domain Registries

Trademark holders have been screwed over by ISP domain name wildcarding more than they realise, I’ve discovered from the .xxx contract documents.

ICM Registry is planning a novel approach to trademark protection if its application to launch the .xxx top-level domain is successful, but it’s been watered down compared to its original plan.

Hypothetically, let’s say you’re Lego. You really, really don’t want some cybersquatter snapping up lego.xxx and filling it with… well, you can imagine what Lego porn might look like.

At the same time, for the sake of your family-friendly brand, you don’t want to actually own a resolvable lego.xxx either.

And you certainly don’t want to be forced to to hand some pornographer over $60 a year for each of your brands. Some companies could see this as supporting pornography.

ICM had originally planned to allow companies in this position to pay a one-time fee to have their brand.xxx turned off permanently.

Personally, I like this idea. It would give the IP lobby a lot less to complain about in discussions surrounding the new TLD program.

But the company may now water down this plan, called IP Protect, due to the way that non-existent domains are increasingly handled by some ISPs.

As you probably know, ISPs worldwide are increasingly capturing NXDOMAIN traffic in order to show search results and advertising links to their customers.

It’s generally frowned upon in DNS circles, and it’s now likely to have the effect of making IP Protect costlier and more of an administrative hassle for brand owners.

You’re Lego again. You pay ICM the one-time shut-down fee, only to find that Comcast is now showing its users links to Lego porn whenever they type in lego.xxx.

ICM president Stuart Lawley tells me that one option currently being looked at is to have IP Protect domains resolve to a standard page at an ICM-controlled server.

The problem here is that ICM has to pay ICANN and its registry back-end provider annual fees for every resolving domain name, and that cost will have to be passed on to the registrant, in our case Lego.

Lawley says that ICM is “engaging” with the ICANN intellectual property community to figure out the best solution. It appears that both options are still open.

Lego launches attack on new TLDs

Could little yellow plastic men be the death of the new top-level domain process?

Toymaker Lego has filed a scathing criticism of ICANN’s latest Draft Applicant Guidebook for prospective new TLD registries, saying it ignores trademark holders.

Lego, one of the most prolific enforcers of trademarks via the UDRP, said that the latest DAG “has not yet resolved the overarching trademark issue”.

DAG v4 contains new protections designed to make it easier for trademark holders to defend their rights in new TLD namespaces. But Lego reckons these protections are useless.

The Trademark Clearinghouse is NOT a rights protection mechanism but just a database. Such a database does not solve the overarching trademark issues that were intended to be addressed.

Lego also says that the Uniform Rapid Suspension service outlined in DAG v4 is much weaker than it wanted.

“It doesn’t seem to be more rapid or cheaper than the ordinary UDRP,” Lego’s deputy general counsel Peter Kjaer wrote.

Lego thinks that a Globally Protected Marks List, which was at one time under consideration for inclusion in the DAG, would be the best mechanism to protect trademarks.

ICANN still seems to ignore that cybersquatting and all kinds of fraud on the internet is increasing in number and DAG 4 contains nothing that shows trademark owners that ICANN has taken our concerns seriously.

The comment, which is repeated verbatim in a letter from Arla Foods also filed today, is the strongest language yet from the IP lobby in the DAG v4 comment period.

Rumblings at the ICANN meeting Brussels two weeks ago, and earlier, suggest that some companies may consider filing lawsuits to delay the new TLD process, if they don’t get what they want in the final Applicant Guidebook.

ICANN’s top brass, meanwhile, are hopeful of resolving the trademark issues soon, and getting the guidebook close to completion, if not complete, by the Cartagena meeting in December.