For the most part that's true. The complainant chooses a mutual jurisdiction in which he agrees to go to court -- however, that does not necessarily limit where the respondent can file a de novo appeal.
I agree that it
shouldn't, but as a practical matter, it depends on the registrar.
This question gets asked here about every week or so. The UDRP is not a tremendously complicated thing:
Paragraph 4:
http://www.icann.org/en/udrp/udrp-policy-24oct99.htm
k. Availability of Court Proceedings. The mandatory administrative proceeding requirements set forth in Paragraph 4 shall not prevent either you or the complainant from submitting the dispute to a court of competent jurisdiction for independent resolution before such mandatory administrative proceeding is commenced or after such proceeding is concluded.
If an Administrative Panel decides that your domain name registration should be canceled or transferred, we will wait ten (10) business days (as observed in the location of our principal office) after we are informed by the applicable Provider of the Administrative Panel's decision before implementing that decision. We will then implement the decision unless we have received from you during that ten (10) business day period official documentation (such as a copy of a complaint, file-stamped by the clerk of the court) that you have commenced a lawsuit against the complainant in a jurisdiction to which the complainant has submitted under Paragraph 3(b)(xiii) of the Rules of Procedure. (In general, that jurisdiction is either the location of our principal office or of your address as shown in our Whois database. See Paragraphs 1 and 3(b)(xiii) of the Rules of Procedure for details.)
If we receive such documentation within the ten (10) business day period, we will not implement the Administrative Panel's decision, and we will take no further action, until we receive (i) evidence satisfactory to us of a resolution between the parties; (ii) evidence satisfactory to us that your lawsuit has been dismissed or withdrawn; or (iii) a copy of an order from such court dismissing your lawsuit or ordering that you do not have the right to continue to use your domain name.
Why do people have such a hard time reading that?
I am serious when I say that I want to "pull WIPO up" on the way it handles
UDRP
Good luck getting around diplomatic immunity of a UN treaty organization.
It's not impossible, but it's exceedingly unlikely.