A domain name is an easier representation of the Internet Protocol. When communicating with other computers connected to the Internet, Internet Protocol addresses, which are numerical representations indicating the location of a computer, are used. To make it easier to use these IP addresses, they are converted into characters and represented as domain names. With the recent spread of the digital economy, there has been an increasing demand for registration of not only top-level domains like “.kr” and “.com” but also new domain names such as “.ai” and “.co.”

 

In the case of the domain names, the practice known as “cyber-squatting,” in which, under the first-come, first-served principle, the person who first registers a name can preemptively secure the Internet domain, or cyber address, and then sell it at a high premium to the original trademark rights holder or company in need of it, is on the rise.

 

※ Source: The Chosun Ilbo (https://it.chosun.com/)

 

The following are legal remedies for such cyber-squatting.

1) The law concerning internet address resources stipulates that “no one shall register, possess, or use domain names with unjustifiable intentions, such as obstructing the registration of domain names belonging to those with legitimate rights or obtaining unfair advantages.” It also provides measures to cancel or transfer the registration of domain names from individuals who have preemptively registered domain names with dishonest intent.

※ Source: Edaily (https://www.edaily.co.kr/)

 

2) The Trademark Law stipulates that “when a person other than the trademark rights holder uses a trademark that is identical or similar to the registered trademark for goods identical or similar to the designated goods without legitimate authority, as well as when a person engages in preparatory acts such as granting, selling, counterfeiting, forging, or possessing the trademark with the intention of using or allowing its use on goods identical or similar to the designated goods, these cases constitute an infringement of trademark rights.” It provides measures to claim an injunction against trademark infringement, file a lawsuit for damages caused by infringement of trademark rights, both financially and mentally, and file a criminal complaint with the competent authorities for imposing criminal sanctions against the infringing party.

 

3) The Unfair Competition Prevention and Trade Secret Protection Act, through an amendment, explicitly prohibits cyber-squatting acts of “registering domain names with malicious intent.” If one’s business interests are at risk of being infringed or harmed due to the unfair competition act of another, measures are in place to enable the filing of a claim in court against someone who has done or intends to do an unfair competition act, such as the prohibition (prohibition of domain name use) and prevention of unfair competition acts, as well as the cancellation of domain name registration.

※ Source: KIPO (https://www.kipo.go.kr/)

Meanwhile, resolving all these disputes through litigation has its limitations in terms of cost and time. Moreover, in the online realm where the Internet transcends borders, there are challenges in determining jurisdiction and choice of applicable law, as well as enforcing judgments in trademark and domain disputes. Therefore, there has been international discussion on establishing administrative procedures to swiftly and cost-effectively resolve domain-related disputes, aiming to enhance convenience for the parties involved.

 

The World Intellectual Property Organization (WIPO), as a global intellectual property organization, recommended to the Internet Corporation for Assigned Names and Numbers (ICANN) the implementation of mandatory administrative procedures to prevent the registration of domain names under malicious intention. In August 1999, ICANN adopted the “Uniform Domain Name Dispute Resolution Policy (UDRP)” to establish a fast and economical dispute resolution process.

 

In South Korea, to handle disputes (hereinafter referred to as “Disputes”) related to the country’s national domain (e.g., .kr), the “Internet address Dispute Resolution Committee (IDRC)” is established to mediate conflicts concerning the registration and use of Internet addresses (pursuant to the Internet Address Resources Management Act). The “Korea Internet & Security Agency (KISA)” serves as the secretariat for this committee and manages Internet address registrations.

※ Source: KIPO (https://www.kipo.go.kr/)

 

The KISA, in collaboration with the Ministry of Science and ICT, recently announced the hosting of the 2023 Domain Name Dispute Mediation Seminar on June 23rd at COEX, Seoul. The seminar aims to introduce an effective domain name dispute resolution system to address issues arising from the unfair registration and use of domain names. The event will feature experts in domestic dispute settlement who will discuss various aspects such as the current state of domain name registration, the dispute settlement system and procedures, the domain name dispute resolution policy (UDRP), issues related to hearing national domain dispute cases, and the prevailing court decision trends in domestic domain name disputes.

 

※ Source: The Chosun Ilbo (https://it.chosun.com/)