Cybersquatter Forced to Relinquish Internet Domain Name
Syosset, New York -- March 13, 2002. Hoffmann & Baron, LLP has
successfully enforced the federally registered Service Mark COMPACT DISC
WORLD®against cybersquatting of the cdworld.com
domain name before the National Arbitration Forum (the "NAF")
without resort to the federal courts. Compact Disc World, Inc., a recognized retail music chain located throughout
New Jersey, has enforced its Service Mark against Artistic Visions, Inc. by
obtaining a decision under ICANN's Uniform Domain-Name Dispute-Resolution
Policy ("UDRP") to prevent Artistic from transferring or continuing
to use its cdworld.com domain name on the World Wide Web. In a related
matter, Compact Disc World successfully opposed Artistic Visions'
attempted registration of the "CDworld" trademark in the
United States Patent and Trademark Office (the "USPTO"). Alan M. Sack, partner at Hoffmann & Baron, LLP, represented Compact Disc
World before the NAF and in the related USPTO opposition. The NAF is one of the
world's largest neutral and online alternative dispute resolution
organizations. NAF arbitrators are experienced attorneys or retired judges and
normally require strict adherence to procedural requirements. Cases heard by
the NAF are usually handled more quickly and at a much lower cost than those
heard in court. An NAF arbitration panel consists of either one or three
arbitrators, at the parties' discretion. In this arbitration, both parties presented their arguments and evidence to
a single independent arbitrator who, in turn, decided the case in favor of
Compact Disc World, Inc., within 45 days from the start of arbitration. The arbitrator's decision required Network Solutions, Inc., which
oversees and maintains control over domain names, to transfer Artistic's
cdworld.com domain name to Compact Disc World. The decision is based on this cdworld.com domain name being confusingly similar to the federally registered COMPACT DISC WORLD® Service Mark. The NAF found that Artistic
has "no right or legitimate interests" in cdworld.com and
that it used this domain name "in bad faith." 1 The
finding of bad faith was based in part on Compact Disc World's vigilance
in providing Artistic with written notice of its federally registered trademark
rights, long before Artistic had invested substantially in the
cdworld.com domain name. To compound the problem, Artistic failed to
obtain the opinion of Counsel clearing the name. In addition,
Artistic offered to sell the domain name to Compact Disc World for $70,000, a
sure sign of cybersquatting. Currently Compact Disc World, Inc. operates its clubcd.com website
and also has a link pointing to its website from the
compactdiscworld.com address. It has completed the administrative
requirements for implementing the NAF's decision with Network Solutions,
and will soon link the cdworld.com address to its website. 1 National Arbitration Forum, Decision, Compact Disc World,
Inc. v. Artistic Visions, Inc., Claim Number: FA0107000097855, page 4.
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