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The FTC has recently reached an initial con-sensus on how it will handle disputes regarding Internet domain names, and will reject claims involving reverse domain name hijacking. This means that where a trademark is not well known, and the trademark owner has failed to secure a corresponding domain name due to his own ne-glect, he will not be able to claim an automatic right to own that domain name simply because he owns the trademark. Disputes of this kind will be handled according to the "first come, first served" principle.
Thus far, the FTC has identified four situations in which a challenge to a domain name registration will be regarded as reverse domain name hi-jacking:
Where the trademark or service mark does not in fact affect the registration and use of the domain name concerned, or any effect is within the realm of normal commercial com-petition.
Where the respondent did not register or use the domain name in bad faith, and the purpose of the complainant in using the administrative procedure is merely to unreasonably deprive the respondent of the domain name.
Where the complainant has set up his own web site, and registered an entirely different do-main name before the respondent's domain name was registered.
Where, at the time the disputed domain name was registered, the trademark in question had not been registered in Taiwan, and had not been determined by any competent govern-ment agency to be a famous mark.
