Forum Selling and Domain-Name Disputes

The system for resolving domain-name disputes is unique in that it gives the complainant—a trademark owner who claims that a domain name violates its mark—the unilateral ability to choose the arbitration provider. As a result, providers, whether motivated by profit or prestige, have incentives to favor the complainant. Empirical analysis confirms that complainants choose providers who are more likely to decide cases for the trademark owner, rather than based on speed. The domain-name dispute-resolution system should be modified to allow both complainant trademark owner and respondent domain-name registrant to strike an equal number of arbitration providers.

This reform would give providers an incentive to be neutral rather than biased.