New rules on cyber-squatting

The Beijing Higher People's Court recently published Several Guiding Opinions on the Trial of Civil Disputes arising from the Registration and Use of Domain Names (the Opinions). The PRC does not yet have any specific legislation in this area and these are the first Court guidelines.

The Opinions include provisions on case acceptance by the Court, jurisdiction, application of law and liabilities, which are binding on Beijing Courts.

The Opinions sets out three criteria on what makes “a domain registration for ill purpose”:

1. the registered domain name is similar to a challenger's trade mark to the extent that it may cause a wrong impression;

2. the domain holder does not have any prior rights over the name; and

3. "ill purpose" in the context of domain registration refers to the following:

a. the domain holder proposes to the trademark holder to sell, lease or transfer the domain name in some other form for money; or

b. with a view to make profit, to mix its domain name with another’s famous trade mark or trade name so as to attract viewers to its website or to use its on-line service; or

c. to register especially for the purpose of preventing others from registering their trade marks or trade names as domain names; or

d. to register for the purpose of damaging others' reputation.

Under the Opinion, domain grabbing for ill purpose constitutes unfair competition, and the Court, upon so finding, may order cyber squatters to stop the use of, or to withdraw or amend the registration of its domain name, or make judgment for compensation.

For further information please contact Aili Zhao (Beijing office) at [email protected] or on +8610 6590 0389.