Parisi v. Netlearning, Inc.

139 F. Supp. 2d 745, 59 U.S.P.Q. 2d (BNA) 1051, 2001 U.S. Dist. LEXIS 9588, 2001 WL 503004
CourtDistrict Court, E.D. Virginia
DecidedMay 10, 2001
DocketCIV. A. 00-1823-A
StatusPublished
Cited by19 cases

This text of 139 F. Supp. 2d 745 (Parisi v. Netlearning, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parisi v. Netlearning, Inc., 139 F. Supp. 2d 745, 59 U.S.P.Q. 2d (BNA) 1051, 2001 U.S. Dist. LEXIS 9588, 2001 WL 503004 (E.D. Va. 2001).

Opinion

BRINKEMA, District Judge.

MEMORANDUM OPINION

Before the Court is defendant Netlearn-ing, Inc.’s Motion to Dismiss, in which defendant argues that plaintiff Dan Pari-si’s declaratory judgment action constitutes an improper motion to vacate an arbitration award. This motion raises the question of whether the “mandatory administrative proceedings” conducted under the Uniform Domain-Name Dispute Resolution Policy (“UDRP”) 1 of the Internet *746 Corporation for Assigned Names and Numbers (“ICANN”) constitute an arbitration subject to the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1 et seq. 2 Because we find that the FAA’s restrictions on judicial review of arbitration awards do not apply to civil actions challenging UDRP panel decisions, the defendant’s motion will be DENIED.

BACKGROUND

This action arises from a dispute concerning Parisi’s registration and use of the internet domain name “netlearning.com.” 3 Such disputes have spread with the Internet’s emergence as a primary channel for worldwide commercial, recreational, and educational communications. In response to widespread dissatisfaction with extant mechanisms for resolving disputes between domain name registrants and holders of trademark and other intellectual property rights, ICANN adopted the UDRP in 1999. 4

*747 1. The UDRP

Although ICANN exerts quasi-governmental sway over the growth and administration of the Internet, the UDRP is enforced through contract rather than regulation. Every domain name registrar accredited by ICANN must incorporate the UDRP into each individual domain name registration agreement. See UDRP, ¶ 1. In effect, the UDRP binds registrants by virtue of their contracts with registrars, such as Network Solutions, Inc., “to submit” to “mandatory administrative proceedings” initiated by third-party “complainants.” UDRP, ¶4. The scope of such UDRP proceedings is limited to claims of “abusive” registrations of Internet domain names. 5 The UDRP covers no other disputes. UDRP, ¶ 5. Complainants in UDRP proceedings must prove that the disputed “domain name is identical or confusingly similar to a trademark or service mark in which the complainant has rights,” that the registrant has “no rights or legitimate interests in respect of the domain name,” and that the domain name “has been registered and is being used in bad faith.” UDRP, ¶ 4(a). The UDRP identifies badges of “bad faith” and grounds for demonstrating a registrant’s “rights and legitimate interests” in a domain name. UDRP, ¶ 4(b)-(e).

Complainants initiate UDRP proceedings directly with a dispute resolution service “provider” designated by ICANN. See UDRP Rules, ¶ 3. The UDRP and the UDRP Rules prescribe detailed procedures for appointing either a solo arbitrator or a three-member panel to conduct the inquiry. The UDRP is fashioned as an “online” procedure administered via the Internet. Although a panel may opt in exceptional cases to hold live or telephonic hearings, it is expected to base its decision on “the statements and documents submitted” in accordance with the UDRP, the UDRP Rules, and any “rules and principles of law that it deems applicable.” UDRP Rules, ¶¶ 13, 15(a). In the absence of “exceptional Circumstances,” a panel is expected to issue its decision within fourteen days of its appointment. UDRP Rules, ¶ 15(b).

If the panel rules in the complainant’s favor, the only available remedy is for the registrar to cancel the domain name registration or transfer it to the complainant. UDRP, ¶ 4(i). A registrar may automatically implement a UDRP panel decision after ten days unless the aggrieved registrant notifies the registrar within this ten day period that it has “commenced a lawsuit against the complainant in a jurisdiction to which the complainant has submitted” as required by the UDRP Rules. See UDRP, ¶ 4(k); UDRP Rules, ¶ 5(e). Upon such notification, the registrar “will take no further action” until it receives “satis *748 factory” evidence of the resolution of the dispute, the dismissal or withdrawal of the lawsuit, or a court order that the registrant does “not have the right to continue using” the domain name. UDRP, ¶4(10.

To date, 3,622 separate proceedings concerning 6,410 separate domain names have been initiated under the UDRP. See ICANN, Summary of Status of Proceedings, (last modified May 7, 2001) <http://www.icann.org/udrp/proceedings-stat.htm>. One of these administrative proceedings concerned the “netlearn-ing.com” dispute now before us.

2. The “netleaming.com”Dispute

According to the complaint, Parisi filed a trademark application for the “NETL-EARNING” mark on April 1, 1996. (Compl. at ¶ 23). On April 5, 1996, he registered the second-level domain name “netlearning.com” with Network Solutions, Inc. The Patent and Trademark Office (USPTO) subsequently denied the trademark application on grounds of descriptiveness and likelihood of confusion with the existing “LEARN NET” mark (not held by any party to this action). Parisi abandoned the application as of October 15, 1997. (Compl. at ¶ 23). Parisi alleges that he nevertheless continued to use the domain name to operate a website with “links” to university websites, and he claims to be developing “netlearning.com” as a component of his “Megasearch.com” search engine. (Compl. at ¶¶ 25-26).

Meanwhile, Netlearning, Inc. began using the mark “NET LEARNING THE ULTIMATE LEARNING SYSTEM” on June 1, 1997. (Compl. at ¶ 30). Netlearn-ing registered and began operating its “Net-Learning.com” website on May 12, 1997, and filed a trademark application for “NET LEARNING THE ULTIMATE LEARNING SYSTEM” on April 3, 2000. (Compl. at ¶ 31). Parisi alleges that Netl-earning offered to purchase his “netlearn-ing.com” domain name for as much as $22,500 in early 2000, but he refused to transfer the registration. (Compl. at ¶ 36). Netlearning subsequently initiated UDRP administrative proceedings challenging Parisi’s registration and use of the “netl-earning.com” domain name. (Compl. at ¶ 37).

On October 16, 2000, a three-member UDRP administrative panel issued a split decision in Netlearning’s favor, with one panelist dissenting. See Netlearning, Inc. v. Dan Parisi, FA 95471 (Nat.Arb.Forum, October 16, 2000). The panel directed Network Solutions to transfer the registration for “netlearning.com” to the defendant.

On October 30, 2000, Parisi filed this declaratory judgment action seeking a declaration of lawful use under the Anti-Cy-bersquatting Consumer Protection Act (“ACPA”), 15 U.S.C. § 1114(2)(D), and the Federal Declaratory Judgment Act, 28 U.S.C. §

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139 F. Supp. 2d 745, 59 U.S.P.Q. 2d (BNA) 1051, 2001 U.S. Dist. LEXIS 9588, 2001 WL 503004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parisi-v-netlearning-inc-vaed-2001.