Four Reasons to Settle a Domain Name Dispute After Filing a UDRP Complaint
Filing a complaint under the Uniform Domain Name Dispute Resolution Policy (UDRP) is not always an easy call, given the time and expense involved in the process. But often, a domain name registrant will quickly offer to “settle” a dispute and transfer the domain name to the trademark owner that filed the complaint. Whether to accept such an offer is not necessarily a simple decision.
Any settlement offer should be viewed with some degree of skepticism, as many cybersquatters will want to attach conditions to a settlement offer (such as payment) or fail to follow-through on their offers. Some domain name registrants simply use the offer as a delay tactic while continuing to exploit the domain name in dispute for as long as possible.
It’s important to remember that the UDRP Rules were amended in 2015 to require that the parties “provide a standard settlement form” to the UDRP service provider (such as WIPO) if they reach a settlement. As set forth in the Rules, the form “is not intended to be an agreement itself, but only to summarize the essential terms of the Parties' separate settlement agreement.” Without such a form, the disputed domain name cannot be transferred to the trademark owner.
Accepting a settlement and filing the required form may seem like a reasonable way to conclude a UDRP proceeding quickly and decisively, but doing so is not always the best option. Without a valid reason to settle, a trademark owner may be better off rejecting a settlement and simply letting the UDRP case proceed to a decision.
So, when is a UDRP settlement appropriate? Here are four scenarios: