Mr. Schwimmer Writes:

>Write a post asking for working together to harmonize and they say "drop dead."

If you read this as the intent of my post, you seriously misunderstood.  As you should 
know from reading what I have written over the last several months, I have never 
adopted such an attitude.

My position has always been simple: where should the primary burden of protecting 
trademark interests lie?  Answer: The primary burden for policing and enforcement must 
lie with TM holders, as it always has.  This is the way it has always been in the 
world.

Another central point, which is crucial to understanding my next statement, is that 
market pressure and technological limitations, rather than protection of existing 
stakeholder interests, should drive the development of technology.  The DNS evolved in 
a particular way for technical reasons.  In the absence of TM concern for policing, 
there is no reason to restrict the advent of new TLDs.  similarly, in the absence of 
concern over policing, there is no reason to impose new restrictions on registries.  
If other reasons emerge, either market pressure (there is no market for new TLDs) or 
technical reasons (there is a ceiling to the number of TLDs that can be added), then 
they impose natural limits.

Mr. Schwimmer continues:

>If I said victims of reverse DN hijacking that DN owners should accommodate 
>themselves to >the way things are, Mr. Feld would respond how?

Reverse hijacking is an artifact of NSI's attempt to protect itself from lawsuits.  It 
is neither a technical limitation nor a market limitation.  If new, competing TLDs 
could be created, with different policies, NSI's policy could be viewed as a market 
choice by NSI, and I would defend their right to make that choice (and encourage folks 
to migrate to different registries).  As it stands, however, consumers have no choice.

The NSI policy that permits reverse hijacking, like the proposed WIPO policies that 
would encourage even more rampant reverse hijacking problems, are barriers to a 
technology and market driven DNS that should be removed.  (By the same token, I am 
also in favor of removing NSI's obscenity policy and similar content restrictions).

My argument is not an appeal to tradition (except in so far as it incorporates 
traditional notions of trademark law) or to the sacredness of DNS as constructed now.  
My argument is that we have a fundamental disagreement over what concerns should drive 
development DNS in the future.  Should it be constructed to facilitate policy choices, 
or simply allowed to respond to market demand and technical need.

By analogy, I offer the FCC's "public benefit" model for broadcast.  In developing 
rules for radio and television, the FCC was charged with performing a public interest 
analysis and placing emphasis on preserving local markets.  This had a profound impact 
on the development of the technology and the business model for broadcast.

Mr. Schwimmer:

>If there were several thousand instances in three years of TM owners complaining to 
>>phone companies regarding trademark conflicts as to how 1-800 numbers were allocated
>the situations would be analogous.

Correct me if I am wrong, but it appears to me that your sole argument for treating 
DNS issues differently from the rest of the trademark world is scalibility. I.E., 
because DNS presents an opportunity for infringement on a grand scale, something must 
be built into DNS to compensate for this.

Mr. Schwimmer
>The collision with the pre-existing body of rights known as trademark rights is
>an externality of the business of selling domain names.

At first glance, this would appear to mean that all trademark disputes involving 
domain names derive from cyberpiracy.  Surely you do not mean that.  The collision with
the pre-existing body of rights known as trademark law comes from a variety of issues
peculiar to the nature of the Internet (its global nature, its blurring of channels to
the consumer, its facilitation of convergence of business out of the traditional
categories) *and* DNS (the requirement that all names be unique).

>From your previous emphasis on cyberpiracy, it is possible that you mean that
the accommodation DNS should make pertain solely to the issue of cyberpiracy.  In that 
case, I would question whether it is worth it to bend DNS out of shape for a matter
which is rapidly becoming settled law.

Mr. Schwimmer:
>The DNS can take responsibility for this externality and work to minimize the
>externality - or they are, to put the best face on it, bad citizens.

The DNS is not a person, anymore than "the Trademark owners" are a person.  Less so, 
in fact.  "The DNS" is an inanimate collection of technology and protocols built over 
time to facilitate internetworking.  It has a number of features that, at this point, 
relate to the purely technical function of moving packets from one IP address to 
another.

The question becomes, what restrictions do we put on the development of this tool to 
facilitate what interests?  What policies do we force those using the tool to follow 
to facilitate certain policies.  Frankly, blaming "the DNS" for the problem of 
policing trademarks is like blaming paper and ink for copyright violations.

Mr. Schwimmer
>TM owners are not interested in rigging the DNSO to gain some type of majority
>(einar's hypo aside).  They are in this debate because of the f*** you tone of Mr. 
>Feld's
>post.  (If my expurgated term offends, I apologize - but it is the essence of Mr. 
>Feld's
>message).

Certain trade organizations and Intellectual property lawyers are here to advocate for 
certain policies that will (A) help their clients, (B) make their lives easier, and 
(C) believe that this serves the public good.  Other (myself included) oppose this 
because we (A) believe these changes hurt our clients (whom I stress at this point are 
*not* cyberpirates - so
please do not raise that strawman in any response), (B) believe it will make our lives 
more difficult, and (C) believe that the proposed policies do not serve the public 
interest.

This is a legitimate difference in views that occurs all the time before 
administrative agencies, legislatures, and courts of law.  I fail to see why you 
resort to profanity simply 
because it is a position taken on a public list.  You think the universe (and your 
clients) are better served if policies are implemented to curb what you believe are 
bad behaviors and to facilitate positive behaviors.  I think the universe (and my 
clients) are better served by
not implementing these policies.  I appeal to traditional rules of trademark law, you 
respond that such rules were never conceived for this medium and that new policies 
must therefore be imposed.  I respond that the nature of the medium is not that new 
(all new technological advances have some dislocating effect) and that the dimensions 
of the problem are exaggerated. Etc.  We attempt to convince each other and the rest 
of the playing universe
of the rightness of our respective views.  On a practical level, we each evaluate what 
are core do/die issues, what are peripheral, where points of agreement can be reached, 
and how to implement a mutually satisfactory solution (if possible).

I am, in fact, rather surprised at both the venom and vehemence of Mr. Schwimmer's 
response.  You are a seasoned professional, justly regarded as knowledgeable in the 
field, doing sophisticated work for clients with particular, well defined interests.  
Why you feel the need not merely to disagree with (what seems to me, at least) an 
equally valid philosophical position, which serves as a starting point for policy 
analysis, but to use profanity and throw up your hands in disgust, is beyond me.

It is precisely this sort of hardening of positions and disparagement of opposing 
views that has made it almost impossible to get constructive work done on these lists. 
 None of the other professional lists to which I subscribe even come close to the 
level of heat displayed here, even on highly controversial do/die issues.  When even 
seasoned professionals 
cannot remain civil, something is seriously awry.

I wrote:

>>As an aside, I will add that TM law seems to be adjusting fine, with no need
>>for any radical adjustments on anyone's part.

To which Mr. Schwimmer responded:
>which conclusion can only be reached by ignoring the totality of the TM/DN conflict 
>over >the last few years.

On the contrary.  Look to the trends as they are merging in the current law, and the 
statistics recently reported by Chuck Gomes on this list.

Regarding law, I note the following:
1) Courts in all reported cases have had no problem finding infringement in cases 
where companies have used names in a genuinely deceptive manner.

1a) Obviously, dissatisfied plaintiffs will disagree regarding what should or
should not constitute infringement, but this is no different from disappointed
plaintiffs outside the Internet.  This is why we have courts, to judge on specific 
facts whether a particular use infringes.

2) Courts in all reported cases have found that "cybersquatting" in the sense of 
obtaining a laundry-list of famous names, is infringement.

Outside the law, technical solutions and services are emerging to (a) facilitate 
enforcement by TM holders, and (b) alleviate consumer confusion.  Furthermore,
as the figures quoted by Chuck Gomes show, the rate at which the NSI
policy is revoked is decreasing.  Finally, I note that e-commerce generated
more than $8 billion in revenues, and is expected to continue growing
at an exponential rate.  Looking beyond the narrow universe of TM concerns
to the broader universe of e-commerce, the problems identified by TM holders are 
not causing much of a ripple.

(We would do well to remember that businesses that go online are not here to horde
trademarks, they are here to make money.  TM protection is merely a tool to that
end.  As I have argued in the past (and continue to argue) I believe that policies
that place unnecessary burdens on DN registrants will ultimately have negative 
consequences for ecommerce generally and the businesses that have pushed for these 
policies.  Consider the telephony market as an example of this.  The money AT&T can 
make in today's enriched telephony market is probably more than it could have made as 
a monopoly provider, in addition to all the other wealth generated in the world as a 
result of divestiture.)

There are, of course, areas of law that remain in contention and that have not yet 
settled.
For example, we still have no good law regarding "oops sites" (sites that rely on the
misspelling of famous word).  Courts, however, are working these problems out.

Given that ecommerce has only been around in earnest for a few years, it is not 
surprising that the law is taking some time to work the kinks out.  The question (and 
it is certainly subject to reasoned debate) is whether the time it will take the legal 
processes to resolve these issues, and whether the answers the legal processes will 
ultimately develop, impose costs so high that we must preemptively decide these issues 
by imposing restrictions on the
DNS.

Mr. Schwimmer concludes:
>Note the contradictory tone - there is no problem - accommodate yourself to the 
>problem.

You have misunderstood me.  Allow me to state the proposition more plainly.

a) As a philosophic matter, I believe that development of the DNS should be driven 
purely by market forces and technological restraints.  I find global policies enforced 
on
unwilling market participants that are designed to "enhance commerce" or 
protect intellectual property as abhorrent as policies designed to facilitate national
content, support localism, bar content deemed harmful, etc. (all of these are policy
goals advanced by other regulatory bodies, why should these policy goals be slighted?)

b) As a practical matter, the DNS currently exists in a particular form.  This form 
presents
opportunity for good behavior (ecommerce, public expression) and bad behavior
(infringement, consumer fraud).

c) Again as a practical matter, you and your clients face problems with specific bad 
actors
who exploit the potential of the DNS for what you perceive as bad ends.

d) Back to philosophy, the question becomes how to deal with specific bad actors.

e) Your proposal is that the mechanism that permits these bad actors to perform their 
bad acts should be modified to reduce the potential for bad acts.  This is justified,
if I understand you correctly, because the sheer scale of the problem makes any other
solution impractical, because doing so will also facilitate the potential for good 
behavior,
(notably ecommerce), because other good behaviors will not be infringed to a 
significant
degree, and because the mechanism that facilitates bad acts somehow bears
responsibility for the bad acts.

f) I, on the other hand, believe that no modification of the basic mechanism is 
necessary, as other mechanisms exist that are less burdensome to the population as a 
whole.  Rather, it is appropriate to place the burden on the party most affected, as 
is traditional in our system of law.  The scale in question, while presenting 
challenges, does not make traditional mechanisms impossible.  Furthermore, the 
suggested modifications would have significant consequences for good actors and 
discourage good actions.  In addition, the proposed solution sets a bad precedent by 
acting against an inanimate system and imposing burdens on good actors thereby rather 
than solely punishing bad actors.  Finally, I argue that society is better served by 
preserving the maximum freedom of action and freedom for the marketplace.

g) You have also made the argument that burden on existing stakeholders is 
sufficiently severe to warrant immediate and dramatic relief.  I disagree as both a 
factual matter and a policy matter.  I argue that your solution creates a potential 
for bad behavior in the form of reverse hijacking.  You disagree.

Thus, to address the quoted statement, there is no contradiction in message.  
Individual people will have problems no matter what happens, just as individuals have 
problems regarding trademarks outside the Internet.  I am sympathetic that your 
clients feel they are injured under the existing system, but I feel the relief they 
want is too high a price.

This does not preclude reaching a practical compromise.  Such compromises are reached 
every day, despite divergent worldviews.  There is no need for you to win the 
philosophical war to negotiate a settlement, anymore than there is need for one party 
or another to admit guilt in a judicial settlement.

Harold

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