I think that is a fair critique of the UDRP.
Nominet's procedures for .UK disputes is much better:
the Nominet rules provide:
Quote:
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Reverse Domain Name Hijacking in which a party has attempted to use the Policy and Procedure citing an Abusive Registration to gain a Domain Name that is held legitimately by an innocent party. Three failed attempts at claiming a Domain Name with Nominet results in a ban on any further claims for a 2-year period on any Domain Name with Nominet.
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Something like that really needs to be inserted into the UDRP.