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Advantages of Initiating a Lawsuit in Virginia

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LawyerSturgeon

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An issue has been raised in another thread (re: HEEL.COM) that I wanted to bring to everyone’s attention - since it is not widely known.

You can initiate a lawsuit in Virginia to obtain any .com, .net or .org domain name or to overturn any UDRP decision. The reason is that the registry for all of these domain names is located in Virginia - maintained by Network Solutions/Verisign. (If you are not familiar with the terminology, the registry maintains the database for all of the registrars.)

Some MAJOR advantages of initiating a lawsuit in Virginia are:

1) Jurisdiction over all domain names irregardless of the location of the registrant. Virginia courts have jurisdiction because the subject matter of the lawsuit is based in Virginia ie, the domain name. This is known as “in rem” jurisdiction – jurisdiction over the “object” – in spite of the fact that the object is merely some data bytes. The lawsuit can be filed as “John Smith v. XYZ.COM” and can proceed without the requirement of personal service on the registrant of the domain name.

2) Speed – The Federal courts in Virginia are the most expeditious courts in the country. Most cases are completed within nine months. Continuances (delays) are very seldom granted. This gives the initiator of the lawsuit a huge advantage. The defendant is usually surprised by the notification of the lawsuit and must very quickly (1) find a Virginia lawyer to defend him (2) pay a retainer fee and (3) work with the lawyer to prepare a response. Very short time periods are permitted for the submission of the response and other filings.

3) Low cost of litigating – Because the court is very expeditious, the costs are lower. Time-consuming motions, delays and extensive discovery activities are minimized.

4) Judges are familiar with domain name disputes and trademark issues since the courts are a favorite litigating forum for these types of cases. Consequently, the decisions are reasonable and fairly predictable. Since the decisions are also subject to appeal, there is a methodology for resolving different opinions held by different judges (unlike the UDRP process).

Because of these advantages, cases are often settled quickly – and favorably for the initiator of the lawsuit. A couple of examples:

A recent UDRP decision ordered the transfer of HEEL.COM to the complainant. The registrant came to me to litigate to reverse the order. We filed a lawsuit in Virginia federal court against the complainant, a German company. Needless to say, it was difficult for the German company to defend a lawsuit in Virginia. Consequently, we negotiated and obtained a favorable settlement price.

In another case, WalMart did not first file a UDRP action. Instead, they initiated a lawsuit in Virginia against my client in Great Britain. Since the domain name was listed as the defendant, there was not a requirement of personal service on the registrant. Because of WalMart’s huge financial resources it was very difficult for the registrant to defend the lawsuit overseas.

----Something to consider


Steve Sturgeon, Esq.
DomainESQ.com
 

timechange.com

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Very educating. Thanks for all the info!

Now, I thought a UDRP decision cannot be appealed, or am I wrong? What's its use, if anyone can file a lawsuit to reverse its decision?
 

pljones

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A UDRP decision can be challenged in federal court (or in a foreign court for that matter). But once a lawsuit is filed, it really becomes a brand new case. The court doesn't have to give any deference to the prior UDRP decision at all.

Don't forget about having proper personal jurisdiction- it is one thing to be a registrant in Europe wanting to challenge a UDRP decision (or a foreign trademark owner seeking to overturn one); it's another if the registrant lives in say - Baltimore and the trademark owner is based there too. Filing in VA isn't smart in that case.

So, in general, Steve's right, lawsuits can be filed in VA pretty easily, but don't forget to consider some important points about where it is proper to bring a suit.
 

pljones

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All- research is underway to clarify this issue and more will be posted early next week.
 
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