Freight financing company convicted of "reverse domain name hijacking", abuse of UDRP procedure backfired

Recently, a freight financing company named Freightos Limited was found by the WIPO arbitration body to have committed "reverse domain name hijacking" (RDNH) when it tried to compete for the "freighttrust.com" domain name through the UDRP procedure, which has attracted widespread attention from the domain name investment community.

Freightos Limited registered the "Freight Trust" trademark in 2024 and claimed that the domain name infringed its trademark rights. However, the domain name "freighttrust.com" was registered as early as 2017, earlier than Freightos' trademark application time. In its reply, the domain name holder pointed out that "freight trust" is a common phrase with a clear meaning, related to freight and trust, and was used in a blockchain logistics company in the early days, not for preemptive registration or malicious use.

The WIPO arbitration panel pointed out in its ruling that Freightos did not prove that the domain name was registered in bad faith, nor did it show that the holder intended to take advantage of Freightos' goodwill. In addition, as a company with professional knowledge and legal resources, Freightos should know that its claims are untenable, but it still insists on initiating arbitration, which is an abuse of the UDRP procedure and constitutes reverse domain name hijacking.

This case once again reminds domain name holders and brand companies that although the UDRP system provides certain protection for trademark rights, it is not a shortcut to seize domains. Especially when the target domain name is registered earlier than the trademark, or is a common word with reasonable use, rashly initiating a complaint will not only be difficult to succeed, but may also leave a malicious record due to frivolous lawsuits, affecting the company's reputation.

From the perspective of domain name investment, "freighttrust.com" consists of two industry-related keywords, which itself has high versatility and potential brand value. Such domain names are applicable in logistics, blockchain, supply chain finance and other fields. Even if a company establishes a related brand in the future, it should give priority to negotiated acquisition rather than relying on arbitration.

This case is also one of the few cases in recent years that has been clearly determined to be reverse hijacking, and it has a strong warning significance. With the continuous improvement of the transparency of the UDRP procedure and judicial interpretation, it will become increasingly difficult for abusers to succeed. The fairness of the domain name market requires institutional protection and the respect and rationality of every participant.