ICANN - Nairobi Trademark Protection in New gTLDs 8 March 2010 >> Hello. I think we should get started. Hi. I'm Margie Milam, senior policy counsel with ICANN. Our session today is trademark protection in new gTLDs. Before we get started, I just want to give you a little logistics information. One of our speakers at the end, Jeff Neuman, is remote. And so for those of you who are listening on translated -- in other languages, his comments will not be translated. So I just want to clarify that ahead of time. Our moderator for today is Michael Silber, a member of the ICANN board. So I'll hand it off to him. >>MIKE SILBER: Thanks, Margie. I think, really, just to give a little bit of background to the session, we're in a situation where Sydney last year -- well, Sydney and a year ago in Mexico City, there was a fair amount of attention. Sydney, a meeting of this size, almost came to blows. And I think it was the largest session at the Sydney meeting, second possibly only to the vertical integration session. The fact that we're reasonably well populated but not absolutely full hopefully means that the tensions have simmered and that the various people on the panel and elsewhere in the community have done their work in coming to an appropriate compromise. But let's go through a little bit of the process and where we're at. Firstly, the models that are going to be dealt with today are the combination of significant work by the ICANN community to identify what we consider to be implementable solutions to address trademark protection concerns. Upon the conclusion of the current public comment process, which is due to close on 1 April 2010, the models will be finalized for inclusion in what will then still be the draft applicant guidebook, until such time as we move to the pure applicant guidebook. Just an indication of what we are planning on doing today. We have, I think, a great panel. We have Mary Wong -- in no particular order - - Mary Wong, Alan Greenberg, Robin Gross, Zahid Jamil, and Jeff Neuman. I'm going to be doing the intro. So you've got about another two minutes of me, and then I keep quiet. After that, what we're going to do is turn it into mini sessions dealing with each of the STI recommendations. Firstly we're going to deal with the trademark clearinghouse. Zahid is going to lead that session. There's going to be a Q&A within that session. We're then going to close that off after 30 minutes. We're going to move towards the Uniform Rapid Suspension procedure. Mary's going to be leading that. Then we're going to get on to post- delegation dispute resolution. And Jeff will be leading that. So if you can try to the best of your ability to keep questions to the specific topics. I know that some will be general overarching questions and we'll need to deal with them where they're raised. But, generally, we'd prefer to deal with topic-specific questions wherever possible so we can get to the real nitty-gritty of the particular issues. There's a timeline slide over there which gives you some indication of the work that people have put in. Again, I just want to pay tribute to everybody who's put in very significant amounts of work around this process. The IRT, who put in an enormous amount of work, whether it was appreciated by everybody or not is beside the point. They certainly put in the hours and the effort to deliver a very significant document, which was a very useful start towards some. Additional thinking. We've been through a number of iterations. We've been through a number of procedures. Where we're at at the moment is that after the consultation, there was definitely a need to modify some of the IRT recommendations. The board sought the GNSO input on an expedited basis on some of the trademark solutions. The GNSO convened a drafting team called the Special Trademark Issues Drafting Team. Yes, there have been numerous remarks made about the particular abbreviation -- that transpired from that name. They have arrived at a set of conclusions. Those were unanimously approved by the GNSO. The revised models and explanatory memorandum have now been posted and we now have public comments running until the end of March and will close on 1 April. So if you have significant concerns and you feel they haven't been addressed, this is the time to do it now. So it gives us a -- if you want to look at it, a complete set of trademark protections or right protections mechanisms, specifically focused to trademarks, but not exclusively, where you have the trademark clearinghouse, you have the Uniform Rapid Suspension procedure, you have the post-delegation dispute resolution mechanism, if it's adopted. And Jeff will deal with that in more detail. You have requirements around a thick WHOIS. And you have the ability to rely on the standard UDRP. Now, that's notwithstanding the fact that the GNSO is currently going through a PDP around rights protection mechanisms. This is likely, given the nature of PDPs, to take a relevant significant amount of time. So this will be a topic that, once it's completed, and assuming that there are no significant issues raised within the public comment forum or within the public comment period, can be signed off by the board and go into the draft applicant guidebook, which means we've completed this phase. Once the PDP is complete and to the extent that the PDP differs, the contractual provisions would then allow for the results of the PDP to supervene the results coming through this process. So this is, to some extent, an interim process. But it is likely, given the nature of PDPs, to be around for some time. So that introduction having been provided, I think let's get on to our first critical issue, which is the question of the trademark clearinghouse. And dealing with some of the key features. Again, as I've said, we'll take approximately 30 minutes for a brief overview and then, hopefully, some interaction with the audience in terms of concerns, questions, or comments that people may want to make. >>ZAHID JAMIL: Hi, there. I'm Zahid Jamil, a GNSO councillor from the BC, but here on my personal capacity. The -- if you have a minute to talk about the work done here, I think this is an excellent example of how cross-constituent, cross-stakeholder group really worked well together. And in that, basically came to a large degree of consensus and a lot of common ground was reached, especially between noncommercial and commercials, and even contracted party house. However, it is important to know that the STI was formed to only look at two areas. One was the trademark clearinghouse. And the second was the Uniform Rapid Suspension, and nothing else. Moving to the trademark clearinghouse, the key features. I'd like to just say it's not on the slide at the moment -- are we moving to the next one? The slides. Right. Thank you. I've got different slides here. It's not mentioned on the slide, but the STI recommended this not as a rights protection mechanism, but merely as a tool. So it's a prelaunch, not a post launch, but a prelaunch tool. That was the recommendation of the STI. It's a centralized database. That's basically what it is. It's a storage of trademark registration and data, so trademark registration data would come in here and be housed in this. The data would be authenticated by a third-party provider, who would take the different application registrations and authenticate them. It does not create any new rights or limit any rights. And it does not -- this is an important distinction also -- it does not -- any failure to be in this clearinghouse, as the STI said, does not prejudice your rights, either. So it's voluntary to be in there. The types of trademark data. Trademark registrations of national effect. Those are the things that go in number one. Number two, the STI recommended that court-validated common law trademarks should be included. So, basically, unregistered trademarks, famous names. If you had any sort of company names, et cetera, they wouldn't be part of this, at least as a mandatory requirement. Required use by new gTLD registries. So it's a mandatory requirement that you have at least two different procedures for prelaunch. One, a sunrise service. Or a trademark claim service, which is that they will send you and let you know somebody is trying to register this trademark that you've registered previously, and you can then subsequent to or after the launch think about if you want to challenge. Costs to be borne by parties benefiting the trademark clearinghouse. Many people discussed who would pay for this. Eventually, the language of the STI recommendation is the costs have to be borne by the parties benefiting from the trademark clearinghouse. That hasn't specified exactly who that might be. Moving to the next slide, the trademark clearinghouse's key features are that, in continuation, model, adopt substantially all of the GNSO- STI recommendations, with a few exceptions. One of the exceptions is that the STI had suggested and recommended that only those registrations go in from trademark registrars where substantive review has taken place of those applications. So if somebody's applying, they would have to -- they -- it would be a question of whether the application is based on a trademark, registration by a trademark registry in a certain country, and whether that country actually does a substantive, quote, unquote, review. We're not really clear, and I'm going to move on to other issues from there. So the registry's required to provide either sunrise or TM claim service for these particular marks. The registry may also request additional validation of use. But that's not a mandatory requirement, it's a may. The TMC is also allowed to have additional solutions built into this. So the trademark holders may opt out of an ancillary service. Now, this is basically generalizing what the STI recommendation of trademark clearinghouse are. Speaking as a person who has represented business, et cetera, in the past, and especially on the STI, it would be sort of important for me to also take a few minutes, a couple of minutes maybe, to discuss what the minority reports, at least from the business constituency, were. Those slides are not up here. It's something I'd like to just sort of speak about. And that's the way I've been told to do it. Most of the comments -- and you see the summary by the staff also -- a lot of the business people said, and also the BC, we are not going to completely object to this. We will put in a minority report. But that is because something is better than nothing. That was basically the message the business constituency sent forward. We had an issue with the prelaunch clearinghouse, and the issue being sunrise, no other remedies being attached to it. We also had some reservation with regard to the issue of identical match. One of the views was that dot Asia has had a broader match and a successful launch. Why should that not be seen as a bare minimum. And it's been done before. And maybe that should be the bare minimum to protect trademark owners. So what the dot Asia model was, mark plus words and the needs classification, and dot E.U.'s recognition of trademarks. The limitation on the use of mandatory for the TMC data by contracting parties that only require sunrise periods or prelaunch TM claims, which means that all the remedies that the trademark clearinghouse provides are prelaunch. The moment the new gTLD is launched, the trademark clearinghouse provides no remedies per se. That was at least our understanding of it. And so we sort of questioned the sort of value that this investment would necessarily bring. Because it leaves open the issue of defensive registrations after the launch of a TLD and the burden that defensive registration put on businesses and people who register. So these are basically some of the issues that the BC had. I'm sure through a lot of questions answered in this 30-minute session, we'll be able to talk more about it. But, basically, we have also, sort of, as I was saying, something is Internet Bill of Rights than nothing, moved on with it. It's important to not just us, the entire STI believes that the trademark clearinghouse is not a rights protection mechanism for trademark. It is just a tool. That's exactly what the STI says. I just want to stress that point. And thank you for the time. >>MIKE SILBER: Thank you. I think that should be pretty clear. But it might be worthwhile, again, because there might be some in the audience who are not trademark lawyers, my myself. So we might want to drill down into this question a little bit, the question of substantive review, and the question, if the trademark is registered in a country which doesn't exercise some form of substantive review, what is the consequence and what is the meaning? But, Robin, I don't know if you want to possibly come in on this and give a reaction. >>ROBIN GROSS: Thank you. Yes, overall, I think these -- the staff did a really good job with the report that came out and following most of the way the STI group's recommendations. And then this issue of including trademarks that have not been substantively reviewed is a change, is one deviation that we see as being a real problem from what the STI group agreed to. And one of the reasons for that is, if you allow the trademarks in that don't come from countries with substantive review, it's pretty much just a pay your fee, get your trademark, you're entitled to the new gTLD, done. So it's too easy. It's -- We need to make sure that the trademarks that get in there actually are vetted, actually are not generic words, are not something that shouldn't be an entitlement to only one individual or organization. So that's, really, the only problem or the biggest problem that we have with what has come out with the trademark clearinghouse, is that change, is allowing these substantive -- nonsubstantive review country trademarks in. So that's -- we see that as being a problem. It's just too broad. It's going to allow for generic words to be, essentially, trademarked and entitled to new gTLDs when, in fact, trademark law wouldn't allow for that. So it's broadening the scope of rights too far and deviates from what the STI group came up with, although I -- again, I think, overall, the report that came out did a very good job overall of trying to maintain compliance with what the STI group came up with. So that's the only really big problem that we have with the trademark clearinghouse. I don't know if anyone else has any comments on that. >>MIKE SILBER: Alan, I know you wanted to come in there. But just one thing I wanted to clarify. When we are talking about ancillary services and this question about whether or not trademark holders, once they're in the clearinghouse, whether ancillary services can be provided and whether it's an opt in or an opt out or exactly how that works, I'm assuming that that would then be to provide some sort of trademark or domain watch service so that the clearinghouse could then have a life beyond the launch of the new gTLD, but it would be an option that a trademark holder could elect to proceed with or not. >>ALAN GREENBERG: I'll prefix my comments saying at large has not had any real discussions of the new staff proposals. But I have had a number of informal discussions, and I feel comfortable that most of what I am going to say will be supported by others. At Large pretty strongly supported the STI proposals. We did submit a minority report, which, perhaps curiously enough, was pretty much in line with the business community report, although not going quite as far as they would suggest. The one concern we've seen in the staff proposal is the same one that Robin suggested, that is, the use of trademarks that have not received substantive review, that is, the requiring registries to use them. Our concern is not a philosophical one. It's a very practical implementation one. The proposal calls for either objections to address the problem where generic words have been registered or that the trademark clearinghouse do the kind of substantive review that a UDRP panel might do. And we find that that kind of process, I think, is going to be quite unwieldy and probably impractical to do. So we question whether it's implementable as opposed to whether it's philosophically a good way to follow. >>MIKE SILBER: The chair recognizes the chair. >>PETER DENGATE THRUSH: Is now a good time to ask a question or do you want to leave them until later on? >>MIKE SILBER: Absolutely, let's engage. >>PETER DENGATE THRUSH: I'd like to pick up the point that Robin and Alan just raised, because the board have gotten hung on this in reviewing this ourselves. We've spotted this, and we, too, are concerned. Can you just explain, so that we've got it exactly clear, how the proposal is going to work. As we understand it, it's going to allow registrations that have not been substantively examined, it's going to put the onus on the clearinghouse to do some kind of validation process itself? And if that's the case, we are concerned about that, because here we've got, here we are apparently competing with national registration systems to check validity. The clearinghouse managers don't have the resources, don't have the training. Why are we doing this? What we tend to do at ICANN is go to other people's tests and standards and say, "You've checked it. We'll rely on it." We use the list of country codes that the U.N. uses. We haven't tried to invent our own list of country codes. Why are we requiring our clearinghouse to start becoming a trademark registry office? >>MIKE SILBER: Mary, do you want to take that? >>MARY WONG: Peter, I'm going to take a stab at that. And I'm doing this as someone who's reading the staff proposal. So maybe staff can clarify if I'm reading it wrongly. And this goes back to Mike's earlier comment about ancillary services. 'Cause when I read the February 15th document, I read it to say that the data in the clearinghouse would only be what Zahid said, that is, registered trademarks or court-validated unregistered marks. And I'm not using the phraseology "common law marks," because I think it's a lot easier we simply recognize that there are unregistered marks, meaning they're not registered in any national, regional, international trademark office. So those are the only two types of marks that go into the clearinghouse, in which case the basic service, sunrise or trademark claims, would then pertain to those marks, the registered and the court validated. Then when you go to the later part of the staff proposal, where it says under sunrise and trademark claims that the clearinghouse should provide the following services, I read it as a choice, that either your services are limited only to the marks that you have, i.e., the registered and the court validated, or, as an ancillary service, as an arrangement, a voluntary arrangement between the clearinghouse and a particular registry. As an ancillary service, they can offer those services for the other kinds of marks that they are not required to collect. I'm not sure if I'm making myself clear. But that was my understanding of the document. >>MIKE SILBER: I think it's certainly a useful exposé. And I think as Peter pointed out, it was an item that caused some discussion of the board yesterday. But I think we would certainly welcome community input on that specific issue and see if people have some issues. I think it's worthwhile going to some of the comments. I am going to ignore the first, because it's a very general one which we can possibly turn to a little bit later. But -- Sorry. Amy, please. >>AMY STATHOS: Thank you. I think there's just a little clarification on what Mary said. My understanding is that the proposal is that all federally registered marks and court validated marks get into the clearinghouse. And please correct me if I'm wrong, but as I understand it, that the STI proposal was that the registries would only be required to provide the services that will be from countries that provided a substantive review. So there's more data in the clearinghouse than what the registries would be required to provide services to. The revised proposal indicates that there's a choice. That the registries could choose to provide services to all the federally registered and court-validated marks or, and this is the new issue, that they could also choose to only provide services to the ones where there was substantive review upon registration. And if the clearinghouse validated the marks that were in the clearinghouse in some subsequent fashion, then those would then be also deemed substantive review, and they would get a check mark or some kind of mark in the clearinghouse, and they would then be all the substantive reviewed ones that were in the clearinghouse that the registries would be required to provide services for. >>MIKE SILBER: Thanks, Amy. There's a question raised, and I think just to clarify, I thought that Zahid had clarified it more than adequately already. The trademark clearinghouse is used for secondary registrations. The process of applying for a new gTLD goes through a very different trademark verification process in the independent review. So this is once an application has been granted, this is a rights protection mechanism. Other form -- I don't know that you don't necessarily agree that it's a rights protection mechanism, but it's a mechanism which takes place once you start opening up a new gTLD for secondary registrations. One of the comments that's been raised is, well, you know, if this works so well and efficiently, theoretically you could, as a trademark holder, cancel your entry in the rights clearinghouse once there's been -- ones that new gTLD has opened up for registrations. I think that is, in theory, correct, but in practice, absolutely incorrect because the intent going forward is not to have a stop- start new gTLD process, but, rather, once we get the machine going, the machine should start spitting out new gTLDs on a continuous and stable basis for so long as it doesn't cause whirls of smoke to start appearing at the edges of the DNS, as I think the phrase was very eloquently used earlier this morning. So there's not going to be a stop. It's going to be a launch of one new TLD and followed by another or another four or five, and the following day or week, another. So in theory, yes, but in practice, not quite. Any further questions from the floor? >>MARGIE MILAM: There's a question from remote. Nick Wood asks, has there ever been a definition of substantive examination in the discussions of the STI? >>MIKE SILBER: It seems that there wasn't a clear definition for various reasons. And Kathy Kleiman has made the suggestion that the definition to be used is the one deriving from the IRT definition. But I think that's something we should possibly not conjecture about here. >>ALAN GREENBERG: We did do a lot of discussion on the issue, and it was clear that there are, in some jurisdictions which do no review whatsoever -- that is, you pay your money, you give the mark, and you get it. There are others which do not -- which do some level of review, but do not do the same level of review that some -- let's say the United States does. I do not believe we defined where the threshold was in what we called substantive review. >>MARY WONG: And just to follow up on that briefly, my personal opinion -- and since we are talking about a clearinghouse that simply does a match, and I do have some comments on the identical match that I will leave for the moment, that as the clearinghouse, I would be concerned about a couple of things. I would be concerned about having to validate -- and I am using the language in the recommendations -- an unregistered trademark, which in those jurisdictions that recognize these as common-law trademarks, depends on territorial restrictions and evidence of use. So I would be a bit concerned about that. I would be much more comfortable if I simply had to authenticate or validate, whatever you want to use, and list and match registered trademarks. As a matter of principle, I think it's really hard to distinguish between marks with substantive review and marks without substantive review. So as the clearinghouse, if you simply had a list of registered marks and that was what you had to match, that seems to be the most minimal and safest way to go. >>MIKE SILBER: Other questions from the floor specifically on the trademark clearinghouse? >>WENDY SELTZER: Yes, thanks. Wendy Seltzer. As another participant in the STI, I just wanted to add to the discussion that a concern the STI considered deeply was to -- how can we limit the discretion of the clearinghouse and not put ICANN or an ICANN contractor in the role of determining what is a trademark, what is a valid trademark. There are national bodies established to do that under national laws, and we don't want to duplicate that effort. If we're going to mandate that the registries listen to and use this clearinghouse, we want it to be a clearly defined set of marks in that clearinghouse. And so keeping it to the validated and registered marks or court- validated marks was a way to define a set that didn't leave ambiguities and didn't leave a great deal of discretion, which was of concern to lots of different people in the community for lots of different reasons. >>MIKE SILBER: Thank you. >>BART LIEBEN: Thank you. Bart Lieben. I am a partner with Laga, and in the past five years I have managed, directed sunrise processes for dot AU, dotMobi, dot Asia, dot ME -- >>MIKE SILBER: Sorry, if you wouldn't mind dropping the mic slightly so you are speaking more directly into -- >>BART LIEBEN: I'm sorry. In the past five years, I have directed a couple of sunrise processes for, for instance, dot EU, dot Asia, dot tel. Quite recently, about 450,000 intellectual property claims were dealt in those processes. In that sense, when I am looking at the substantive review, I think we need to make a clear distinction between the actual concern is not having a domain registration on a trademark for generic words, what I am referring to as a dictionary word. Because if you look in practice, that's perfectly possible to have a trademark for a generic word. Take Apple, for instance. Apple is a protected trademark. I don't think there is any argument against that. Nike is a protected trademark. It means victory in Greek. So why should that be included or excluded? So I think we clearly need to make a distinction there between, on the one hand, substantive review, which at a certain point ICANN would make a determination on what is a good trademark system or a bad trademark system. And I think that is a very big risk that is not for ICANN to determine. I think if you look at the safeguards that have been implemented, for instance for dot Asia and that we are now doing for dot CO in a couple of weeks with the launch process there, is that if somebody would apply for a domain name on the basis of a trademark that corresponds with the dictionary words, which the community refers to as a generic trademark, at that point in time, we will be asking the trademark owner to provide evidence that he is actually using the trademark in a trademark sense. And if you look at the dot EU experience where there was a bit of a possibility to game the system, if you want, or at least some members of the community felt like there was the possibility of gaming the system, you had a lot of -- there exists a lot of trademarks that are for generic words or dictionary words. So this is a good way. I think this has worked in the past, we have done this in the past. 30,000 claims in dot Asia, not a single dispute on that. I think this is a more easy and comfortable way for the new gTLD process and for ICANN to proceed with. Thank you. >>MARGIE MILAM: I am going to read a statement from David Taylor. He states: The question of eligible trademarks is key. We should not exclude many EU countries nor, for that matter, community trademarks. Are these included for the URS? I would say it is wrong to say that CTMs are not subject to substantive review. >>MIKE SILBER: Bruce, do you want to comment here? And then we can wrap this up and get a response from the panel. >>BRUCE TONKIN: Well, I guess I wanted to raise a different topic, so did you want to have the panel respond to that question? >>MIKE SILBER: No. Carry on because we need to wrap up on the clearinghouse. >>BRUCE TONKIN: The question I have around the -- whoops, too loud -- around the review of the trademarks partly relates to whether you are using a sunrise process versus an IP claims process. Because I think they are very different. I think if you are dealing with an IP claims process, essentially what you are saying is that a person can apply for a name, and they are notified if there is any trademarks associated with that name. Now, presumably, that person that's notified makes a judgment based on whether the trademark is, you know -- depending on what country it's from and depending on what classification it's in, and whether that person applying for that name feels that they might infringe that trademark. In that context, I think it's pretty clean. I think you basically -- you are operating a registry of trademarks. I don't think you have to have some external body to decide whether they have had review or not. Just a list of trademarks. You as an applicant make your decision based on that information. So I think that's pretty clean. Sunrise is very different, because sunrise, you are actually giving one entity, I guess, a first option over identity that doesn't have a trademark. So basically saying if I have a trademark, I have the first right to apply for a name before anybody else is allowed to apply. So there, perhaps it is more important that you have a higher standard as to how strong should that right be to basically have priority over other applicants. So I think those two things are very clear, where you have sunrise where you are giving a trademark holder priority over people who don't have a trademark, and IP claims where there is no priority. Anybody can apply. They just are simply notified of any trademarks on the names. I wonder if anyone wants to comment on that distinction. And have the panel thought about whether either sunrise or IP claims has benefits or whether you are fine with leaving those two options on the table. >>MIKE SILBER: Thank you for that. I just want to go to Jeff Neuman who had a comment, and then Alan also wants to respond to that question. >>JEFF NEUMAN: Yes, thank you. Can you hear me? I guess you can. My comment is, from a registry perspective as being on the STI group, our biggest concern was that we did not want to have a registry that basically mirrored every other registry that's out there. In other words, it's not in our interest to have a bunch of defensive registrations in the sunrise process that really sit there that don't have any use. So to the extent that there are trademarks from a jurisdiction that does not have a substantive review, to the extent they have marks in there, like blog and Web and auto and all these other generic words, that really does us no good and really are not marks that we want to recognize as a registry because, to us, the value of a name being used is far greater than the minimal fee that we make from a defensive sunrise registration. >>MIKE SILBER: Alan. >>ALAN GREENBERG: In response to Bruce, I'm not quite sure what the final staff February 15th proposal says. The STI report made it very clear that the registry had the right to not use marks from jurisdictions without review for the sunrise process. It did not give them that discretion for IP claims. So it did differentiate in exactly the way you are suggesting. I'm not sure that was accurately reflected in the staff proposal or not, but presumably it should have been. >>MARY WONG: And Mike has allowed me a quick follow-up so I will try to make it brief. Bruce made the point I wanted to make as well. There is -- there are, as Alan has said, important distinctions between the two mechanisms that the clearinghouse can push out to registries. On the IP claim service, you are not prevented from registering, even if there is somebody else with a trademark with that name. In a sunrise process, the trademark owner gets the priority right to register. And in this context, I just want to say that that's why the test for an identical match, to my mind, in a new process with a clearinghouse that's going to have a lot of different functions to deal with, should be kept as narrow as possible. People in the community have suggested that the different dot X, Y, and Z have used different processes. But each sunrise process with each registry is also different. So dot Asia's is different from dot EU's, for example. And most of them start with the identical match, meaning the exact textual match. Things like plurals, for example. Things like adding the needs classification of goods and services is not a universal match test by all existing sunrises. And to the extent that they are there, it is a very refined and sophisticated process. And so far, the process within ICANN, in talking about the clearinghouse, has really not gone that far. So the one thing I would add to the distinction is that in a sunrise process for the identical match test, I would recommend a very narrow test. >>MIKE SILBER: Let's, I think, take one last issue on this topic, or one last question on this topic, and then let's move along. The one thing that I wouldn't mind also just getting a response when we close off and after the question is also, then, whether the -- as the DAG moves towards the AG, whether we should allow the current situation that we have of either a sunrise or an IP claim process, but that we should actually choose one or the other. >>RON ANDRUFF: Chair, if you are going to move on to ancillary services -- okay. >>MIKE SILBER: Continue. >>RON ANDRUFF: Very good. My name is Ron Andruff. I am with the business constituency but I am speaking in my personal capacity. I just wanted to ask the question of why were ancillary services brought into this mix when, in fact, the clearinghouse had a very specific function, as we understood from the community. So it's a little unclear for some of us in the community why ancillary services is there. And more importantly, what are those services? What would they be? >>MIKE SILBER: I made an assumption. I don't know if anybody can help save me from making an ASS out of myself by assuming too much. As I indicated earlier, I think the only reason I can think of for that -- and again, I think it's something that's worth a little bit further investigation, is that if you were to offer some sort of rights watch or IP claims service post registration, that would be an ancillary service that would be unsolved to people having entered into the clearinghouse initially. I would assume that's where it's coming from, but again, as I say, that's not necessarily a conclusive statement. >>ZAHID JAMIL: I think we haven't defined that on STI. It was open to ancillary. There were other examples. I won't go into the examples that were there, but it's been left open. You could even have some people -- I know some registries are launching, considering having something equivalent to a list, and that could be done through this as ancillary services. But again, the STI didn't actually specify anything in the report, per se. And I have points. Are we going to go back? Can I finish my points first? >>RON ANDRUFF: If I may, then, if I understand this correctly, it means that if a provider steps up and says we will provide this service, and if they are selected this is kind of a carrot for them that they might be able to sell on other services. Is that a correct understanding? >>MIKE SILBER: As long as the trademark holders consent to that. And, of course, the registry consents to that. I think let's wrap up on that because we do need to move on to the URS, but let's wrap up. So closing remark. >>ZAHID JAMIL: Thank you. So just to clarify something that me and Mike were just discussing. I was reading the STI trademark clearinghouse section. Right in the first line it says, and I think this will clarify for all of us, there is a consensus among the members of the STI that although this was not a rights protection mechanism, et cetera, et cetera. So I think it's very clear that the STI itself -- and I just want to make sure that it's not my personal view that's coming out, but this is what the STI suggested. This is not a rights protection mechanism. And I completely agree with a lot of statements made here that the job of the trademark clearinghouse should be limited and it shouldn't be making a judgment call. Let me just make one small point. If you read the red-line version of the new staff proposal, on paragraph 7, it -- which was earlier clarified, it says that the services must recognize, one, all registered trademarks in the trademark clearing database, full stop. And for some reason, it doesn't actually mention the court-validated ones in that one. And then in number two, it says registered and validated. So I think maybe there was some -- probably that needs just to be added, exactly. I think that's what caused the confusion. But I think that clears that the intention was to have court validated in number one as well. So just for the audience, to clarify those two points. Thank you. >>MIKE SILBER: Let's wrap up on IP clearinghouse. >> Excuse me. Sorry. I just have one last point on the clearinghouse. >>MIKE SILBER: I'm sorry, can we close up on the IP clearinghouse and then move on to the URS. We can take general comments at the end, or other specific issues. I did make it clear that I was taking one last question on clearinghouse. So IP clearinghouse, we now understand, is not a rights protection mechanism but, rather, it's an automated database against which verification can take place, either for sunrise registrations or for IP claims. Makes sense. It seems to be consensus. We seem to have a few rough edges which need to be smoothed over, but we seem to have pretty good consensus. Let's see if the next one is as easy to understand and to achieve that level of satisfaction within the community. So, Mary, if you wouldn't mind just giving a brief exposé of the URS process, and then we can take some questions and discussion on that one. >>MARY WONG: Mike, I don't mind at all, although that sounded a little bit like a challenge. So we have a couple of slides on the Uniform Rapid Suspension mechanism, known as the URS. And we're not proposing to go through them in any great detail because we are assuming that just about everyone in the room has either followed the process or understands the basic concepts and how it's going to work. So there are just a few points I'd like to emphasize. The primary point is that the URS is not the Uniform Dispute Resolution Policy, the UDRP, which is in effect right now through all registrars and registrants. Neither does it replace or displace the UDRP. So it works alongside the UDRP, and some would say it sits on top of it. And it actually serves a very different function. It is meant, and all the reports from the IRT to the STI to the staff proposals make it clear that the URS is meant to address very clear-cut cases of trademark abuse. And as such, even though, if you look at the URS, if you look at the document, you might find that the substantive grounds look the same and are the same as a UDRP proceeding, there are some very significant differences because of this particular function. Only clear-cut cases of abuse. The two most obvious differences are that the standard of proof in a URS proceeding is different. It's higher. Where a UDRP uses a preponderance of the evidence, a URS proceeding requires clear and convincing evidence that the registration is in bad faith, that the registrant does not have legitimate rights in the domain name and so forth. So that's one very big difference. And the second difference -- rather, the second major difference that's caused some consternation in the community is that unlike a UDRP successful complaint, there is no cancellation or transfer of the domain name. It is a suspension system. So in effect, the domain name is still around. It is not transferred to the domain name holder. It remains in a free state or suspension. So if I just go quickly through these points, I don't propose to read them to you. I just want to highlight a few things. One of the things that the STI report does and that the staff proposals pick up on is that it tries to enumerate and it tries to provide guidance to registrants who may be the subject of a URS complaint as to what the boundaries are. What is and is not a clear- cut case of trademark abuse. So, for example, if you are an innocent registrant, you are able, even if you miss the deadline for filing a response, which I believe is 20 days, even after that time, you can come back and file a response up to two years after that date. At some point, you will probably have to pay a bit of an answer fee, but cost aside, you can always come back during that two-year period and file a response to the complaint. So there are a couple of protections. That's one of them. Except for the late response fee, there's generally no cost to the registrants. And in addition -- I have already talked about the remedy, so next slide, please. In addition, other protections for registrants, which the STI calls safe harbors and the staff proposal refers to as defenses, there are some examples about what would not be a clear-cut case of trademark abuse. So, for example, a fair noncommercial use of the trademark, a parity or a criticism site, and other types of uses that do not constitute bad faith or illegitimate rights to the name. And I understand that the STI referred to quite a lot of models in coming up with this, including the Nominet model. And I'm glad to see that that has stayed in the report. And I do think that these additional protections and clarifications will provide a lot more guidance to the community. And it's kind of hard trying to listen to yourself, watch yourself in Adobe Connect and watch the screen all at the same time. In terms of the -- >>MIKE SILBER: It adds new meaning to multi-tasking. >>MARY WONG: I know. In a Web 2.0 world, I guess I am a slow learner. I have talked about some of these other points already, so I think the last point I want to highlight is that, again, unlike the UDRP, there are prescriptions in the STI report and the staff proposal that deal with abusive complaints. So for example, if a rights holder or trademark holder files two abusive complaints, there are penalties. If there is what is termed a deliberate material falsehood in the complaint, penalty should also follow. At this point I should add, and those of you who have looked at the proposals will know this, I think still some work needs to be done as to what an abusive complaint is, as to what a deliberate material falsehood is. I know the IRT struggled with this, and we ended up not making a recommendation. But at this point I would urge the community to put in public comments to assist the staff with coming up with guidelines on this. The final point I want to mention, and this actually escaped me the first time I read it. I hope that you are more eagle-eyed readers than I am. Even though I said that the standards in terms of what is required for a URS complaint and what is required for a UDRP proceeding are similar, bad faith and so forth, that is true, but the first requirement, and this is the baseline requirement for any kind of trademark or trademark-like rights, is that what you are using is an identical mark or a confusingly similar mark. In the UDRP it, simply that it is identical or confusingly similar to a mark in which the complainant has rights. As many of you know, this has allowed panelists in a lot of proceedings to have to wrestle with the idea of whether common law and unregistered rights actually fall within that ground, and a number of panel decisions have said yes, unregistered common-law rights would count under that first limb of the UDRP. In contrast, the URS, as proposed, is quite a lot narrower, at least in my view. So rather than simply any mark in which the complainant has rights, you can only file a URS complaint if it is a registered mark from a jurisdiction with substantive review. And I suppose that brings us back full circle almost. And on that, I'll conclude my remarks and allow for discussion. >>MIKE SILBER: Perfect. Questions, comments from the audience? Absolutely. >>ALAN GREENBERG: I've got two comments. One of them, in reading the staff proposal, and perhaps the STI also, ICANN still seems to have a fixation that domain names are only used for the Web. And there needs to be some cleanup, because people do, in fact, use domain names for things other than the Web. E-mail may be an example. The other one is, there is a very substantive change in the STI and the staff proposal from previous requests. And this applies both to the URS and to the clearinghouse trademark claims process. We have specified that you must talk to people through registrants in a language which they can understand. And that is a very substantive difference. That is, if you're going to send a complaint to someone, you should do it in the language that they registered the domain in. And since there are very tight time constraints, it's only reasonable to do that. One of the examples that was used along the way from one of our members in a French-speaking country is the statement saying to his neighbor, anything in English is spam. And I think the fact that we've caught these kind of things in a world where we're going into IDN in a big way I think is important. >>MIKE SILBER: Robin, comments, response? >>ROBIN GROSS: Thank you. Yeah, one of the -- the noncommercial users worked very hard with the other members of the STI to make sure that there were these safe harbors that were built into the URS. And one of them in particular was a safe harbor for Web sites that are operated solely in tribute to or in criticism of a business or a person. One of the -- There's a slight change that was recommended to this perhaps from the staff proposals based on a comment from Microsoft that changes what the STI -- or perhaps changes what the STI said to require a finding of fair use before -- or adding that on to the criteria, the tested criteria. So what we need here is some clarification. There needs to be a finding of fair use by whom? Presumably, we mean the panel; right? The panel says, right, this is fair use. Okay. Go on. But it's not clear in the proposal. It says you can go on if there's a finding of fair use, but it doesn't say by whom. And arguably, one interpretation of that sentence would mean there has to be a previous finding of fair use, as in, you've got a court ruling or something to prove that you are in fact a fair user, and without that, you don't fall under this safe harbor. So I don't think that's what staff intended. Again, this is probably just a clarification error -- issue, where we just need to add into this that the finding of fair use would have to be by the panel and not per se a previous court. >>MIKE SILBER: Jeff, I believe you have a question? I'd rather hear from you rather than reading it. >>JEFF NEUMAN: Oh, okay. I thought it might be easier. I guess my question for the panel, and maybe for ICANN staff, is, now that many of the UDRP providers are providing for their own fast track or cheaper alternative for the, quote, easy cases, has the panel or has ICANN staff considered what to do with that or whether a URS is actually needed? >>MIKE SILBER: Amy, I think you're being put on the spot here. >> Thank you. Amy STATHOS. Jeff, I'd like to know when you say a lot of them are providing in expedited fast track or cheaper. I know that the Czech arbitration court has recently indicated it is changing its fee structure for matters in which there is no response. That is the only change, as far as I see, from theirs. I don't see that any other UDRP provider has implemented anything else. And I could be wrong. But I don't see that there is any -- any other expedited process from a UDRP provider. >>JEFF NEUMAN: Maybe someone from WIPO who is in the audience could talk. I know that there is a proposal going around within WIPO that talks about a new process. But I don't believe they've released it to the public. I certainly haven't seen it. But I did -- or my understanding was that it provided for cheaper fees but also a faster- moving process as well. >> Amy STATHOS: Yeah, I think that's what WIPO has said they are going to propose. We haven't seen it. And it hasn't been proposed, as far as I know. >>JEFF NEUMAN: So maybe perhaps, say, before WIPO actually introduces it, perhaps they -- a review is done by the community to see how the two would interact, as opposed to just having the dispute providers implement a new policy that hasn't been considered by the community. >>MIKE SILBER: Jeff, instead of presuming, let's get the answer from WIPO directly. >>JEFF NEUMAN: Thanks. >> Thanks, Jeff. Brian from WIPO here. It's true we have been exploring ways to further expedite and make more cost-efficient the UDRP within the existing framework based on the ability to address issues such as word limits and fees in the supplemental rules. And we very much think it's an open question, and I agree you with there that there are questions regarding the scope of interoperability between any URS and any efficiency gains that can be made within the UDRP process. So for us, that's very much an open question. >>MIKE SILBER: Peter, you wanted to comment? >>PETER DENGATE THRUSH: Yes. Thanks, Mike. I just wanted to warn the community that there's a real danger of this mechanism actually having been agreed and the board voting on it and us moving on. The silence that was the response to Mary's outline and the fact that Robin can only find one quibble, which she then provided the answer to, suggests that we really are getting close on this one. And I think the evidence of compromise that's all over there is another great sign. So just a warning. We may actually be ready to move on this one. >>MIKE SILBER: We do need to wait for public -- [ Applause ] >>MIKE SILBER: -- comment to close. But before we respond, let's take another question from the floor. >> Can you -- This rapid suspension procedure slide, to move to the slide, this rapid suspension procedure. I have a question to the last item. Remedies. Yes. What do you mean, transfer of domain name after decision is not remedy? This means transfer domain name for the company, registrar who registered an infringed domain or what? >>MIKE SILBER: In essence, it's suggesting that this is some sort of interim process. It's not a final process. So that if you actually then wanted an order for transfer, you would have to go ahead with the UDRP process. This would be a way to take down a site which is causing immediate and ongoing damage. But it's not a way to get hold of a site from somebody else. >> It's not clear. For example, if I'm registered Coca-Cola.pp, so after some time, I have registration for one year. After some time, I just was sued for infringed trademark. So I honestly paid. It's not my responsibility that registry made this registration. Do I have right to transfer all my business in this domain? For example, to some other domain for the same, the same prices or similar issues? >>MIKE SILBER: My understanding -- and Mary, I don't know if you want to come in on this -- is that if somebody has applied for suspension, the domain has been suspended, and no further action has been taken by the rights holder against you, once the suspension is lifted, you can carry on doing business in that domain. Mary, you want to -- >> In this case, please, change the wording of this. Because it's unclear. >>MIKE SILBER: I think the answer is don't rely on PowerPoint. Power corrupts, but PowerPoint corrupts absolutely. I think the point is to read the STI proposal and then the staff amendments to that, and the public comment closes, as I said before, on 1 April. Interestingly enough, April fool's day in most of the world. Alan, you wanted to respond? >>ALAN GREENBERG: Yeah, one of the problems is we use the word "transfer" in at least three different ways. The word "transfer" for domain names typically means to transfer to a different registrar. That has nothing to do with this here. Our use of the word "transfer" in the STI, and I think the IRT, says, can the complainant take custody of the domain name after the dispute. In a -- in a UDRP, they can. We said in the URS, they cannot, which is what that was saying. And I think what the gentleman was asking is, can he transfer the Web site, as it were, to a new domain he registers which wasn't subject to a complaint. And the answer is, he can do whatever he wants with his Web site and a new domain name. >>ZAHID JAMIL: Thank you. Since I am a member of the B.C., just I want to voice some of their concerns, although I don't represent them here on this panel, which I agree with. Some of the minority positions taken by the B.C. and some of the problems -- and I want to speak to this, because Peter mentioned that maybe the silence meant that everything was fine on this one and it will go through. I just want to sort of caution that on a few points. I want to say, though, that there was a high level of consensus amongst everybody on this, but there were certain minority aspects. I'd like to highlight them. The first point I'd like to mention is that this is the only post- launch remedy for second level. That's -- it's very important to have that context. And there are no other second-level remedies for defensive registration issues, number one. Number two, the remedy, the only remedy allowed under the URS to a successful complainant that the domain name get suspended, and after a year, he can pay extra money and allow the suspension to move on for one extra year. Now, what happens at the end of the second year or the year and a half or whatever it may be, the domain name goes back into the pool. So to some people, it was like a game of whack a mole, at the end of another year, file another URS, file another URS, and at some point, there will be a pipeline of these that brand owners will have to deal with. So some degree of concern was demonstrated. It's part of the minority that says that transfer or some other -- even the IPC agrees you should be able to purchase that domain name on a priority basis. Maybe that's the remedy after the suspension. You know, not a free transfer, but to buy it. Fine. The other aspect of it was the cost of this wasn't, to some, looking as if this was going to be competitive and be rapid. Because, you know, it's a 20-day process to -- 21 is what the UDRP does. This is 20 days. But it has other benefits. So I just want to caution that those are the other aspects. When we say that the URS should go through with maybe these minor slight changes, at least from my perspective, or the perspective of the B.C., then I think we're pretty much there with a fairly good rights protection mechanism, which applies. But it leaves open other areas of defensive registration or rights protection against the issue of defensive registration. And I think those need to be also sort of taken into account. However, I agree, this one's pretty much done, with maybe these few exceptions. >>MIKE SILBER: Thank you. Jeff, I've noted that Kristina has a question. But first, Margie has some comments and statements that have come through that she'd like to read. >>MARGIE MILAM: Actually, I was going to refer to Kristina's question. What if the URS is not faster or cheaper? >>MIKE SILBER: Anyone volunteering to take that? >>KRISTINA ROSETTE: Actually, I'd like to follow up on the question. Just to give some background information, it's been suggested to some members of the IPC by one UDRP provider that in its current iteration, the URS may not in fact be faster or cheaper, which were the two key goals of the URS, of course, in the context of kind of slam dunk facts. So I guess my question to the STI members is, if it's really not faster or cheaper in its current iteration, what changes, if any, would you be willing to consider agreeing to? And if none, why not? >>MIKE SILBER: Any comment to that? [ Laughter ] >>MIKE SILBER: I think everybody is -- Kurt is volunteering to pick up the oven gloves. >>KURT PRITZ: Only briefly. You know, the really short answer is, if it's not cheaper or faster, people won't use it. But the reason why we think it will be is, it's -- it wasn't just based on an excellent thought process in the IRT, but, rather, it was based on real experiences where Nominet, for example, has an expedited procedure, and we could look at real costs, the IRT could look at real costs and real prices from Nominet and other places. So it's based -- the URS is based on real experiences, not -- and it's not a -- certainly not a brand-new invention. >>MIKE SILBER: The point to be made is that Nominet is one of the few places that actually uses a mediation approach in its expedited process rather than an adversarial approach, which would be wonderful if we could all just get along. But, Antony, I think you had a comment that you wanted to make? And I'm assuming it's largely the same as the one that came through the -- the chat room? >> (inaudible). >>MIKE SILBER: Okay. So then let's deal with your colleague's comment that came through. >>MARGIE MILAM: Jothan Frakes has a question. Has the panel reviewed this Fortune 100 study on defensive registrations in new TLDs? He indicates that his company did a study on the Fortune 100 companies and a number of brands, looking at registration trends for those brands, and they concluded that all source data -- and they substantiated the findings, having been reviewed by a third party. The studies show there was little defensive or squatted registration in available new TLDs for these brands. Any comments from the panelists? >>MIKE SILBER: Nobody jumping on that one. Antony. >>ANTONY VAN COUVERING: Yeah, let me just simply say I have a copy of that if anyone wants to review it. If you haven't reviewed it, obviously, you can't respond. But I have a copy. Thank you. >>MIKE SILBER: Then maybe we simply note the question. It's certainly something that has seen some interesting discussion so far in corridors and elsewhere. Maybe then we move on to Jeff, dealing with the post-delegation rights protection, and then we can take some general queries at the end. >>JEFF NEUMAN: Sure. So for many of you, I'm sure you have not really focused too much on the post-delegation dispute resolution process. But it's something that the registry stakeholder group has focused on considerably and has submitted comments in each of the past comment periods. And not to disappoint Peter, who made the statement that it seemed like the URS was substantially done, I think this one has a good way to go. And I think there are a lot of pretty controversial issues here. For those of you that don't know the post-delegation dispute resolution process, it's essentially a process that was recommended by the IRT and also had some support initially from the World Intellectual Property Organization, intended to be used against registries that are engaging in systemic trademark infringement at the top or second level. Parties to the dispute, at least as ICANN has proposed, is the trademark owner and the registry itself. There are fees that ICANN has recommended which, actually, they haven't recommended the exact fees, but the structure, where the fees would be shared between the registries and the trademark holder filing the dispute, but, ultimately, the loser pays. In other words, the prevailing party will have their fees returned to it. The remedies, one thing that ICANN has clarified is that there are a suggested set of remedies that are graduated tools that ICANN could use in order to implement against a registry that is found to have violated this process. And then ICANN has added a provision that says, absent extraordinary circumstances, ICANN will review, approve, and enforce the recommended remedies, or ICANN also has some discretion to amend that as well. So let me start with the positive changes that we've seen in the last draft, that the panel makes the recommendations to ICANN with respect to the remedies as opposed to ICANN just implementing whatever the panel has decided. The default used to be, in the old version, where if there was a default against the registry, there would be an immediate finding against the registries and penalties would be implemented. Right now, as it said in the proposal, there would still be a review by the panelists of whether the registry violated the policy. And then the third thing that was positive change was that, at least from a registry perspective, was that affirmative conduct was required under all of the grounds for disputes. And I think the World Intellectual Property Organization made a comment earlier today that it disagreed with that new standard of -- or that new burden. There are -- I have at least seven major items that I believe more work is needed by ICANN. I believe that ICANN needs to be more involved in the disputes at the outset. As the IRC recommended, it's not enough to state that ICANN will continue to do contractual compliance in the explanatory section, but there really should be an affirmative commitment by ICANN to do this prior to a third party initiating a complaint. And there must be ramifications for ICANN's failure to enforce agreements. ICANN is very good at asking registries and registrars for service- level commitments, and I think the community -- it's time for us to demand that ICANN make those same service-level commitments to us. I think also ICANN needs to be more involved as -- in determining the actual remedies as well. So in their proposal, what's said is that ICANN will -- it says, "Absent extraordinary circumstances, ICANN will implement what the panelist determines." But to rely on one panelist to make a sole determination that -- of what the remedy should be is really, I believe, an abdication of ICANN's responsibilities under the registry agreement. And, really, what we're talking about in most of these panelists is possibly one trademark attorney who may or may not have experience in dealing with these types of adjudications. The other -- the third point that I would like to make is that this post-delegation dispute resolution process must not replace contractual dispute resolution mechanisms in the registry agreements. In other words, ICANN must make -- or must acknowledge specifically that all determinations and remedies recommended by the panelists, or even implemented by ICANN, shall be entitled to de novo review through the dispute resolution process set forth in the registry agreement. In other words, registries have in their agreement an arbitration provision. And that provision should not be waived simply because there's one panelist that decides against a registry. The fourth thing is that there's still a requirement for registries to pay half of the costs up-front. This is an interesting requirement, because it's not in any other dispute mechanism that's recommended by ICANN in any other circumstance, nor is it required in most courts around the world. And I believe will be used by overzealous trademark owners to extort a settlement or other undesirable outcome. So what I'd like to know from someone at ICANN is, what is the compelling justification for requiring a registry to pay fees up- front? Because I don't believe I've seen that. Another item that I -- and I do want to kind of move quickly, because it would be great to get some comments from everyone else in the community. But there is an ability in the document for a panelist to award monetary damages, to actually award some monetary amount that a panelist finds is the harm of a trademark owner. And from a registry perspective, this has to be removed. Again, this is not in any other type of dispute resolution proceeding that ICANN has ever endorsed. So for those of you not familiar with this determination of damages or financial harm in an ordinary trademark dispute, this can actually be one of the most complex adjudicatory decisions, which usually only arise after you have a lot of discovery, the presentation of evidence, one or more hearings. And they're you always subject to cross-examination. But here, surprisingly, we have a -- one panelist, unless for some reason the parties both agree there should be three -- which we believe should be changed -- there's no hearing, there's no presentation of evidence, there's no cross-examination, and there's a 20-page limit in both the complaint and the response. With all of those things combined, you know, this is something that, really, I don't understand how one trademark panelist can decide financial harm and award that against a registry. And the final point that I have is that ICANN has done a really good job at describing in the explanatory notes that this really should not be used for ordinary trademark infringement or for actions in which (Loss of audio) which there was no affirmative conduct (Loss of audio) but I believe that ICANN needs to provide examples of safe harbors for registries. In other words, there should be specific examples, like there are in the UDRP, where a registry can allege or can put forward an affirmative defense to respond to these claims against it. So (inaudible) policy. And I know that this post-delegation has not been subject to too many consultations. And I do think that substantial work is required in this area before we can check the box and consider it done. >>MIKE SILBER: Jeff, so what I'm hearing from you is the -- that's not something that you could necessarily live with, it's not something that requires -- it's something that requires to be complete reworked? >>JEFF NEUMAN: Not sure it needs to be completely reworked But I think that there are -- and I plan on submitting in the comment period a red-line of the draft document that ICANN has to make their job a little bit easier. Some of us (No audio) have offered to sit down with the ICANN staff to help them with the red line earlier on but were not taken up on that offer. But again will make that offer to help drive this to conclusion. The registries as a whole don't object to a (Audio cutting out) post- delegation dispute resolution process (Audio cutting out) process, but it needs to be one that actually has due process (audio cutting out) one where, if you look at some of the comments from ICANN's analysis, they rejected some of our comments because they said it wouldn't be -- it would slow down the process or wasn't good for expediency sake. And my question back to ICANN staff is, (inaudible) or efficiency a substitute for just getting it right? We're talking (No audio). -- about a registry that could lose its entire (Audio cutting out) business based on this one complaint. So, you know, I think efficiency and expediency -- (Audio cutting out) -- expediency are not necessarily the highest values that we should be looking at when. (audio cutting out). Deciding this issue. >>MIKE SILBER: Okay. I think we have it clear. Jeff, I suppose that. (audio cutting out). Notwithstanding your blog post a couple of months ago where you expressed dissatisfaction with the fact -- (scribe's audio cutting in and out." Post-delegation dispute resolution had been dropped and you called for its reintroduction. >>JEFF NEUMAN: Yeah, I think the comments that I have made today -- (No audio for scribes). Are consistent with those comments. And I do believe that ICANN has made progress in the post-delegation disputes (inaudible) process, so there were some improvements that were made. So I am trying to get this to move forward. I know the community wants the post-delegation dispute resolution process, and so trying to make. -- (audio cutting out). -- work for everyone. The registries are willing to sit down and try and -- (scribes without audio momentarily). >> Rights protection mechanisms enumerated in the registry operators agreement. And this language is also -- doesn't find itself in the staff proposal, and this is also taken out. Maybe it's been put someplace else, but I haven't been able to see it. What the concern, at least, of mine would be, that that means that if there is a breach of representations when the TLD application, doesn't give us a remedy post delegation. If there is a breach of registry agreements, I'm not sure -- at least ICANN would have a right to do it. ICANN could, obviously, if there is a breach between ICANN and the registry, but nobody else would have a right to say they are doing something which is infringing. And the third is there could be systemic breach, and you could say the standard is affirmative conduct, so if there is a blind eye and the registry basically doesn't actually affirmatively do something but allows, by omission, certain things to take place in the registry, that again would be something that anybody couldn't initiate a dispute resolution mechanism. Now, all these three points were there in the IRT. It's possible to do that in the IRT, but are not in the staff proposal. I just want to underscore that point. >> On a housekeeping note, we seem to be having some difficulties with the audio. So if somebody is busy streaming last night's episode of "Desperate Housewives" or torrenting the baseball game -- I don't know what season it is, so please forgive my geographic insensitivity, but if somebody is chewing huge amounts of bandwidth, if they wouldn't mind just being considerate to the remote participants and try and drop your torrent speed a little bit. >> The sound issue has been fixed. Thank you. >> Oh, I guess that means I can be heard by everybody, which I don't know if it's a good thing or not. Two very brief comments because I am not familiar with registry practices, and since this was not subject to the STI, it's a different process, but I wanted to pick up one entity, and Jeff has said, too, two very quick points. First, as Jeff mentioned the parties to this procedure are the registry operator issue and the trademark holder. And maybe this is semi-rhetorical or unnecessary question, but what kind of trademarks? Registered? Unregistered? Was that considered? Which would then broaden the universe if it includes unregistered trademarks. Second quick comment, and it picks up on your point, Antony, in terms of the single provider, the recommendation or the proposal as it stands simply says appropriately qualified. And it's an appropriately qualified provider. It's not just one person. I mean, that's just one issue, but it's going to make a determination about bad faith and so on and so forth on substantive grounds. So personally thinking, I think some further guidance as to what "appropriately qualified" means would be very helpful. >> You wanted to comment? >> A couple of other things. I would note if you look at for instance UDRP decisions, you would find very similar factual bases for the case, and different opinion. So we really do need to have a few safeguards here. Number one, I would suggest is there some kind of appeal, which doesn't appear to be there. In other words, if ICANN decides there's not extraordinary circumstances and somebody says, well, we need to shut this registry down, then that happens, and there's no appeal. Furthermore,, you know, I still have not heard a good justification for ICANN farming out its responsibilities to enforce its own contracts. Why are we having a private third party deciding what ICANN's contract means. Surely, in a contract between two parties, the other party is responsible for enforcing its own contract. >>MIKE SILBER: Jeff, you wanted to jump in there? >>JEFF NEUMAN: Yes, and I think that relates -- the appeal, anyway, relates to my statement that the normal dispute resolution process in the registry agreements still need to apply. In other words, if there is a finding against a registry and a remedy that's ordered by ICANN, that the registry can still take ICANN to arbitration and have a de novo review of the entire situation, both the determination and the remedy itself, so that ICANN cannot just basically, like you said, just give it to a third party to decide the issue and then just wipe its hands clean. You know, there are contractual remedies that need to be honored. And ICANN needs to -- You know, it was very good in its draft policy of saying that the registry agrees to abide by the policy. But if abiding by that policy means waiving any rights they have under the registry agreement, that has to go. >>MIKE SILBER: Jeff, thanks for that. I think we have gotten a very clear sense -- sorry. Another comment from the floor. >> Sorry, just to clarify a few points. The original proposal from WIPO, which informed the IRT's work, recommended that the sanctions would take the form of graduated responses. So that just affirms Zahid's points about the nature of this mechanism. And just further to that, the panel recommendation was intended to take the form of a recommendation to the ICANN board that would have contractual authority to impose sanctions on a registry. And just wanted to reiterate our willingness, as we have stated in several of our public letters, to get together with affected parties; namely, registrars and ICANN, to flesh out some of the consideration factors that would draw some boundary lines around what would be the types of bad faith conduct that would be addressed by such a mechanism. >>MIKE SILBER: So what I hear you saying is that for ICANN to have some sort of mechanism, a dispute resolution mechanism, short of full arbitration. Say simplified (inaudible) mechanism for those circumstances which may not be quite as serious, but where ICANN doesn't act as prosecutor -- investigator, prosecutor and judge, but, rather, that an independent panel is pulled in to make some of those decisions, making away the power from ICANN to act arbitrarily. >> I would just clarify that it's not -- I don't mean to misstate that it would be intended to take any power away from ICANN, but very much the idea behind the concept was to act as a standardized form of assistance to ICANN's own contractual compliance responsibilities. And I think that falls against the backdrop of some of the experience that the WIPO arbitration mediation center has with, for example, arbitration cases, and that has been sort of a background to this. >>MIKE SILBER: I am not suggesting taking power away at all. I am just suggesting the appropriate use of power. Amy, you wanted to come in there? >>AMY STATHOS: Yes, I wanted to clarify because I think there is a misconception with respect to the remedies, and it's perhaps a language issue. But the intent is and the change is that a lot of comments, including Jeff's very well taken comment about the about the remedies, that the remedies, in fact, are a recommendation. And ICANN will maintain full control over whether or not they impose those remedies, because ICANN halls the relationship with the registry. They understand how the registry is operating. The intent is simply with respect to what the panel is to do. And quite frankly, in terms of one versus three, I think the intent was to make it as expeditious as possible. But I don't think that ICANN has a position with respect to whether there be one or three. And we'd like some additional comment on that. But the panel is meant to determine the infringing conduct. And that's really the only thing that the panel is meant to declare. And then ICANN would be responsible for taking the assistance, as Brian indicated, the assistance from the panel and then actually determining which remedy -- what remedy to impose. So I hope that clarifies that there is no intent to allow the panel to actually tell us what remedy to impose. >>JEFF NEUMAN: If I could jump in on that. >>MIKE SILBER: Sorry, can I cut you off over there? Just we have another comment that came in via remote, if we can take that one first. >>JEFF NEUMAN: Sure. >>MARGIE MILAM: We have a comment from David Taylor regarding the post-delegation dispute resolution procedure. He indicates that it's a very important remedy to have. One has to have a potentially powerful stick to beat a naughty registry with. One might not use it and one would hope that it would not be used, but the mere fact that it exists should help keep some registries in line and ensure that those good faith registries do not have to compete with others not adhering to the respective charter. One of the IRT recommendations was to have three panelists. >>MIKE SILBER: Jeff, the floor is yours. >>JEFF NEUMAN: Yeah, I like that. I hope I am never a naughty registry. But just to address a comment that was raised by Amy. Amy, if you look at the slide that's up there, the second to last point which is the exact words from the policy, it says "absent extraordinary circumstances ICANN will review, approve, and enforce the recommended remedies." So that, to me -- I'm happy with what you said, and I think that needs to be codified. But right now, what it says is that you will approve it absent extraordinary circumstances. >>AMY STATHOS: After the comment or as amended by ICANN. So I agree with you, Jeff. I think we are on the same page and I think it's just a language issue. So I think we will revise some of the language in that regard. >>MIKE SILBER: Antony, you had another comment. >>ANTONY VAN COUVERING: Yes, I'm sorry to be up here again. I am a little shocked to be honest. I'm glad everybody took it as funny, but it's not as if we are children and trademark owners are our fathers. I would like to see a substantial definition of what abusive conduct is by a trademark owner. I can easily see this used as a form of blackmail against registrants. And I would like to make sure that that's addressed. Thank you. >>MIKE SILBER: Any further comments from the panel? If not, we seem to have a relative degree of silence, so if I can then draw my conclusion from the comments made. This is an area that still seems to need a fairly significant amount of work, whether it's, just as Amy suggested, a question of language which needs to be improved and some iterations that are required over there or whether that's a conceptual issue, as some others have been suggesting, that goes deeper into the principle of the post-delegation dispute resolution process that needs to be considered. It certainly seems to be, of the three, the least mature of the three proposals. On that basis, can we take any general comments? And then I will ask the panel to work around and give their conclusions. But let's see if there's anybody from the floor with some general comments. And I do apologize, we are going slightly over time, even though we started on time. >> Hi. Just on the clearinghouse, you have got here that there's -- I will read it out. Registrations that include top-level extensions such as dot com as part of the trademark or service mark will not be permitted in the clearinghouse regardless of whether a registration has issued. And I was just wondering, what was the logic behind that, that exclusion? >>MIKE SILBER: Please. >>MARY WONG: Well, I'll try but it may be wrong, simply because I did not write this proposal. But my understanding is that this wasn't invented out of thin air. That there's a couple of other registries out there that adopted the same policy. As to why ICANN staff put it in, I couldn't tell you. But I can tell you that that's not a unique mechanism. >>MIKE SILBER: Alan, please. >>ALAN GREENBERG: I can't comment on the origin either, but I can comment on my lack of understanding of what it would mean if it was in the clearinghouse. Since dots delineate different levels of domain, having ICANN.com as a single mark within the clearinghouse to be used as a second-level domain when it's implicitly a third and a second level doesn't make sense. But I really don't know the origin. >>PAUL FOODY: It seems to -- it seems to go against people who have registered dot com addresses originally. I just find it very peculiar. Thank you. >>MIKE SILBER: I tend to disagree with that. I think it goes against people who have registered generic names within dot com and want to try to prevent people from registering those same names under a different gTLD. I don't think it has anything to do with people who have rights and have chosen dot com as their place of current registration. >>PAUL FOODY: Well, I would understand that if it said -- if it limited that exclusion only to dot coms. But it doesn't do that. >> It's a trademark where the dot and the C-O-M are part of the trademark, as opposed to mention was made earlier of Apple, which is a generic name. And a trademark was registered in respect of records as well as a separate trademark by a different company in respect to various electronic devices with that name. But if somebody went and registered Apple.com without having the underlying trademark in the name Apple, then the use of the dot and the com in the trademark registration would then have no effect because you wouldn't want to go and register Apple.com.blog. That is, I think, the issue; that you are creating the possibility of generating a third-level registration and taking out an entire second level. So if I had the name Apple.com but without having rights -- you know, I am part of an apple picking association, and I had the rights to Apple.com without having the trademark in Apple, I wouldn't be able to register Apple.com.blog, thereby taking out com.blog because the dot in the DNS creates a leveled structure. So by registering Apple.com.blog I would take out and prevent anybody else using com.blog. And that is, I think, the issue being raised, is that the use of the full stop. And maybe we need to look at rewording it, is something that should be considered, is that the use of the full stop would create a logical inconsistency within the DNS. >>PAUL FOODY: But surely that argument would apply to every trademark full stop. >>MIKE SILBER: No, only those that would have a full stop in them already, or dot, if you prefer. >>PAUL FOODY: Thank you. >>BART LIEBEN: If I may comment on that last point. Bart Lieben. If you look at the registries that launched, they had the rule where you could remove the extension from the trademark. So if you are referring to the existence of the dot in the trademark itself, which would be difficult, then, to have a registration at the second level, there's a rule for that that says, well, if you have a sign that cannot be transcribed in LDH, at that point in time you can replace it with a hyphen or you can simply abandon it. And I think that's also in the STI proposal. So there's a rule already there that deals with that issue. So if you look at past experience, Asia, dot tel, dot co shortly, it is possible to remove that extension and also that is in line with common trademark examination practices. So if you look at the examination guidelines that are used before the U.S. PTO, they do not consider an Internet extension as being part of the trademark when reviewing -- when performing actually a substantive review on the thing. >>MIKE SILBER: Thank you for that very valuable clarification. >>BERTRAND DE LA CHAPELLE: Thank you, my name is Bertrand De La Chapelle, I am the French GAC representative. Just two points. The first thing is in the GAC principles regarding new gTLDs, there is a clear distinction between basically three elements in the process of introducing new TLDs. One is the introduction of the string. The other one is the delegation to a specific operator, and the third one is the ongoing operation or rules. In the case of the whole debate about trademark protection, which is both very important but very hard to follow in detail by actors who are not completely involved in that specific topic, I think it would be incredibly useful for when you present things to the outside and the external world to make as clearly as possible the distinction on what are the things that relate to the top level, which is the things that are going to be dealt with with the string once and for all when it is chosen, and the ongoing regime that will have to deal with the post-delegation system. It is something that I ended up understanding, but after a long number of panels. The second point, very quickly, is for the generic terms; i.e., the real generic top-level domains, there has been a trend, apparently, of people trying to trademark or feeling that they needed to trademark the dot TLD, basically. I, unfortunately, may not have followed enough. Can you just tell me if there is any provision at the moment to deal with this thing, and whether, for instance, in the case that there is a trademark of that sort and the TLD itself is allocated or delegated to one actor, there will be a provision for transferring that trademark or not taking it into account? Or will it be considered as being a -- not to be taken into account as a preliminary right to apply for the TLD? To be very precise, there is one element about trademark, but also people who are registering naturally, if they want to apply for dot shoe, they are registering dot shoe in one word, in dot com, or whatever. Is this going to be transferred when dot shoe, the top-level domain is going to be delegated? >>MIKE SILBER: I think that's a very interesting question and one that I certainly hadn't considered, assuming that we'd be working off a relatively blank slate as opposed to people trying to advance their possibilities of getting into the script. Is there -- Please respond. Then let's take the last two questions -- sorry, last three questions from the floor, and then we'd like to wrap up the panel. >>ZAHID JAMIL: I think Bertrand makes a good point. To describe what remedies we have for the TLD post launch. If you look at that landscape, you find, as I said earlier, the only post-launch, ongoing registration remedy that we have is that game -- whack-a-mole game also known as URS. As I said, I think it's a very good remedy, just needs slight tweaking to become something very, very useful. But that's the only remedy that we have. And like that, I think we need to start categorizing what remedies apply to what aspects of supply chain of that process. >>MIKE SILBER: I think Bertrand is asking a different question, which is, if somebody has trademarked dot generic, do they somehow have preferential rights? Mary, I don't know if you'd like to volunteer an answer? Wendy wants to volunteer an answer from the floor. Thank you, Wendy. >>WENDY SELTZER: Well, as a matter of trademark law, I would simply question how somebody could register dot shoe with either an actual use in commerce for domain registry services in the ICANN- supported root or with a genuine intent to use, given this long process. So I would hope that those registrations would be subject to challenge rather than offering an opportunity to preempt this process. >>BERTRAND DE LA CHAPELLE: Let me just say that this is not a hypothetical. This is a reality. And the guy was regularly applying for dot music has explained that I think in his case, he has applied for the trademark to protect, but others have been confronted with others applying for the word. So.... >>WENDY SELTZER: And I will just tie that into the general comment that I wanted to make, which was that a key principle from the GNSO council is advocating the timely orderly introduction of new gTLDs. The longer that this process continues, the more opportunities there are for people who think that they can jump the gun by engaging in mechanisms outside of ICANN to reserve names and then preempt the process here. I just -- I think that what we've seen here has been a serious investigation of trademark issues that were raised. The special trademark interest team was a serious cross-constituency and consensus-driven organization from throughout the community. And I think that we should now be prepared to say as an organization, we have investigated this overarching issue, we have addressed the concerns of trademark holders and others with trademark interests, and as the chairman suggested earlier, it's time to call a lot of this closed and move on to the timely introduction of the generic top- level domains. [ Applause ] >>MIKE SILBER: I think that's a very good point. Bertrand, it's certainly something that I'll look into. It is, to some extent, outside the ambit of this particular discussion, which is focused on protection of markholders' rights. That's at the second level, generally, under new TLDs, and broader, in the case of the TLDs itself. But still, it's an interesting question which certainly we'll make sure there is an answer to it. Because it's something that could otherwise present a problem. Let's take the last two comments from the floor. Then there was a generic comment online, and maybe we can just have responses to that comment as well as to other issues that have been raised this afternoon. >> Just a small comment, not really a question. And I can't speak to other categories within the DAG or the application process itself. But at least within the legal rights objection criteria, one of the consideration factors is whether the -- and I'm paraphrasing here -- whether the use of the mark has been bona fide. So where you have potential gaming scenarios for a dot TLD, one of the consideration factors that a panel would look at would be this exact issue. >>ANTONY VAN COUVERING: Again, thank you, everyone. I'd like to just say that for those of us who are planning to apply for TLDs, it would be extremely helpful to have some kind of an advisory opinion from ICANN regarding the usefulness or nonusefulness of registering dot TLD. Because I know there's a great deal of activity out there and there are a number of people who think they are protected or safe or they've got it because they registered the trademark. So I don't think that ICANN considers a trademark registration your pass to a TLD. But it would be very useful to have some kind of opinion from the board or the staff about that. Thank you. >>MIKE SILBER: I think that's a point worth taking. Margie, let's end it off with the generic question. >>MARGIE MILAM: This is from Constantine Roussos. Why is ICANN trying to become a trademark enforcement body? Why are today's trademark mechanisms available not good enough? >>MIKE SILBER: Anyone want to take that one? Well, then I'll present what's -- we have a -- >> I can briefly comment on that. I don't think that anyone from ICANN -- and I don't mean to speak for ICANN, but -- would mean to say that they are stepping in the shoes of trademark enforcement bodies. I think the thing that underscores all of the proposals that we've been looking at is really more efficient both in terms of time and money, ways to address trademark abuses outside of the court system, which, naturally, given the multijurisdictional nature of the Internet, can become quite cumbersome, it's not to supplant trademark laws, but to offer an alternative. >>MIKE SILBER: The other thing that I would possibly add to that is that other than the post-delegation dispute process, which deals specifically with the registry rather than registrants, all of the others are interim processes of some form. None of them are final. You know, the URS, even a UDRP, there is the possibility of looking at a court process in an I.P. claims or a sunrise. It's not a final process. It's a mechanism which, then, based on policies, could generate certain results and then would involve certain decision- making. But none of those are absolutely final processes where ICANN is taking on a rights protection mechanism. It's, rather, offering alternatives, and interim alternatives, to registrants so that we are not accused of the other potential crime, which is ignoring rights that exist out there in the real world, as well as in the online world, and allowing this to be a free fall. I think on that, let's wrap it up. Jeff, let's give you an opportunity for any final remarks. >>JEFF NEUMAN: I want to thank everyone for letting me participate remotely. I hope it's worked out well there. And we have about 30 or more people here in Reston that are following along in the room. So I want to thank everyone. I think, you know, on the clearinghouse and the URS, I think we are almost there. I think there needs to be a study done with the URS and how that's going to interoperate with some of the proposed mechanisms. And I agree with the assertion that post-delegation dispute, we do need some more work on. But I will graciously -- I will make myself available again, make that offer, to help ICANN staff out, or anyone else, to interface with WIPO and others to bring this to a conclusion. >>MIKE SILBER: Thanks, Jeff. Robin. No concluding remarks from Robin? >>ROBIN GROSS: I'm sorry. Yes. I just wanted to point out that the STI report that came out was a cross-constituency compromise, that it was something that all of us really worked hard and made compromises and came up with something that we could all agree on. So I think in many ways, it was a very good, healthy experience for ICANN. And I think that the proposals that came out of the STI report should go forward. And I expect they will soon. Thanks. >>MIKE SILBER: Alan. >>ALAN GREENBERG: One quick statement regarding the post- delegation dispute. At Large doesn't have a particular interest in looking after registries, in general. On the other hand, we are potentially very afraid of what this kind of mechanism could do to very small community-based registries who will not have the resources to defend themselves if the procedure does not have enough safeguards in it. >>MIKE SILBER: Mary? >>MARY WONG: Okay. We are so close, and we're a long way from Sydney in many ways. And I think this is a very welcome development. I would hope that the comment period that closes on the 1st of April. It will be helpful, it will be constructive. And there will be feedback for some of the still somewhat open points in the proposals, some of which were talked about today. And I just want to conclude by going back to Bertrand's comments, essentially. I think some of the things you said is not an ICANN- specific problem or an issue. I mean, it exposes the fissures between having a domain name, you know, one person gets it, and trademark rights, which are not just territorial, but can vary depending on goods, services, and so forth. Having said that, however, I think this community has recognized that there is a need to protect trademark rights. And this process, I think, has shown that there can be a balance, that you protect existing trademark rights without expanding them at all, not just unnecessarily, but at all. And I should hope that we can see this process come to a good close very soon. >>ZAHID JAMIL: Slightly discordant voice from the rest. The STI was a compromise on certain specific tasks given to the GNSO. So it should by no means be interpreted to mean that that is the solution to all trademark issues. Two very specific points. Have to respond to it. I mean, tools. One was an (inaudible). It doesn't solve the larger question of the defensive registration. Let me just say this very clearly. The only remedy for both pre and post-launch for defensive registration is for a brand-holder to buy. He has to buy whatever he wants to protect. With the number of new gTLDs coming out, if it's just going to be ten or 20, I don't think that's a big problem. But if it's going to go into the hundreds, and with the root scaling study, we wouldn't be studying that if we didn't think it would be the hundreds, you can imagine the multiplication and the amount of money the brand holders are going to have to spend. Because that's the only thing they can do. If you want to protect your trademark, you have to spend pre, and you have to spend post. >>MIKE SILBER: I think that's where Jothan and Antony were making the point they may have some differing views. And I think that's the document that certainly is getting some interest in the community. What I'd like to say, and not because of the paper put out, but because I agree completely with the comment, Jothan made a comment in the chat that if you look at the progress that's been made from Sydney to today, I think it's really significant. People who sat on the IRT and people wanted to beat them up and take them out in Sydney are now sitting together largely in agreement. I think we've clarified a lot of the misconceptions. I think we have simplified and smoothed over a lot of the inconsistencies that had, due to the very nature of the process, crept into the IRT report and some of those recommendations. It seems that we've still got a little bit of smoothing to do. It seems with regard to the post delegation dispute resolution process, there may be more than just a bit of smoothing. I would like to agree with Amy, and I hope I can be proved that Amy is correct, that it's just a language issue and it's nothing more than that. 'Cause if that's the case, then it looks like these three wrap up pretty quickly, and then we can tick one more box on the way from draft to final applicant guidebook. That being said, comments close 1 April. So you have time to recover from jet lag on your way home from Nairobi, and then those comments need to be in pretty damn quick after that. Thank you very much for sticking it out. It's been a long day. It's been an eventful day. And your presence is greatly appreciated. [ Applause ]