Interpretation of UDRP: Why is the success rate of the three letters of complaints .COM domain names is low?

Many years ago, the domain industry was not as regulated as it is now. Many investors registered a large number of domains, inadvertently registering domain names that were trademarks of well-known brands. As a result, they were inevitably sued later. Looking at the recent cases that have been litigated over the past few years, the success rate for lawsuits involving three-letter .com domains is relatively low. What are the reasons for this?

I. What is UDRP?

UDRP stands for the Uniform Domain-Name Dispute-Resolution Policy. It is an international policy designed to address domain disputes, providing a rapid, cost-effective mechanism for legitimate rights holders to arbitrate disputes related to malicious domain registration or usage. Through UDRP, complainants can submit complaints, accusing domain holders of abusing registered domains and seek the cancellation or transfer of the domain to protect their legitimate interests.

II. Disputes involving 3-letter .com domains

Most recently, a case of dispute over the three-letter domain TOX.com was reported by foreign media. Another case concerning TRX[.]com, as highlighted by Nat Cohen, Director of the Internet Commerce Association (ICA), in his article on CircleID (October 26, 2022).

Since January 1, 2012, out of 80 disputes regarding suspected cybersquatting of three-letter .com domains, 77 have been rejected, with 20 instances of Reverse Domain Name Hijacking (RDNH) being found. Nat Cohen also mentioned that in three transfer decisions, two (ado[.]com and imi[.]com) were questioned in court and overturned, incurring costs in the hundreds of thousands of dollars, while the third case (ehf[.]com) is still under court review as of the article's publication.

III. Why are 3-letter .com domains difficult under UDRP?

1. Universality and Common Use

Three-letter .com domains typically have high universality and common usage. They may represent abbreviations, acronyms, or industry-specific terms. Due to their extensive usage, determining whether a domain name is maliciously registered or used can be more challenging.

2. Commercial Value and History

Many three-letter .com domains have a long history and commercial value, with some possibly registered early on. Therefore, it might be more difficult to prove malicious registration or usage by the domain's owners.

3. Rights and Evidence

For complainants, proving that a three-letter .com domain is maliciously registered or used requires providing clear evidence that the domain's usage infringes upon the complainant's legitimate rights. In many cases, this can be a challenging task.

4. UDRP Standards

In settling domain disputes through the Uniform Domain-Name Dispute-Resolution Policy (UDRP), the standards for proving malicious registration or usage are more stringent for three-letter .com domains, making it more challenging for complainants.

For these reasons, complainants should carefully consider whether they have the necessary objective evidence to succeed in UDRP, as they are likely to fail unless they have specific target evidence or significant notoriety.