Smarkets' attempt to acquire SBK.com through the UDRP was deemed a reverse domain name hijacking by the panel.

A World Intellectual Property Organization (WIPO) panel recently dismissed a dispute involving the three-letter domain name SBK.com, finding that the complainant, Smarkets Limited, had engaged in "reverse domain name hijacking."

Smarkets is a UK-based sports betting company whose "SBK" brand operates primarily through the betSBK.com domain name. The company claimed to own the "SBK" trademark and attempted to acquire the SBK.com domain name through the Uniform Domain Name Dispute Resolution Policy (UDRP).

However, the panel noted that the domain name had been registered by the current holder long before Smarkets registered the SBK trademark, and that Smarkets failed to provide sufficient evidence to demonstrate its pre-registration common law rights in "SBK."

The panel also noted that Smarkets' failure to disclose multiple communications and acquisition attempts with the domain name holder in its UDRP application constituted a "misleading statement." The three-person panel unanimously ruled that Smarkets' actions constituted an abuse of the complaint process, attempting to acquire legitimate, high-quality domain names through administrative means, a violation of reverse hijacking.

SBK.com, a typical three-letter .com domain, possesses significant brand value and versatility, making it widely used in various industries, including sports, gaming, and technology. This has led to intense competition for such domain names in the market. However, this ruling reiterates that even if a company holds a trademark, it cannot bypass legitimate acquisition procedures and rely on policy measures to "seize" a domain name.