Nat Cohen Answers: “Why do domain investors distrust the UDRP?”

The UDRP is a risk domain investors need to consider when investing in domain names. Anyone can file a UDRP regardless of whether or not there is any merit to it. While the vast majority of UDRP cases involve clearly infringing domain names, there have been too many UDRP filings involving domain names comprised of absolutely generic terms and short acronym domain names that have considerable value.

There have been numerous Reverse Domain Name Hijacking (RDNH) decisions, but there is no penalty for filing a meritless UDRP for either the complainant or its legal representatives. This can make the UDRP appealing for companies that are unable to purchase a domain name from a registrant or simply do not wish to even try to purchase a domain name. The UDRP has occasionally become a a tool to extract a valuable domain name from a registrant without having to pay what it is worth.

At best, defending a UDRP can become a cost suck for a domain registrant. At worst, an adverse UDRP decision can deprive a domain registrant of a valuable domain name. Sometimes, it seems, a UDRP decision can come down to the panelist chosen to preside over the decision.

Nat Cohen posted a thread of tweets that I think is worth reading. Nat starts off by asking why domain investors distrust the UDRP, and he shares his thoughts on why he believes this is the case.

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Original article: Nat Cohen Answers: “Why do domain investors distrust the UDRP?”

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