Role and responsibility of internet intermediaries in the

Role and responsibility of internet intermediaries in the field of trademarks Federation of Swiss Watch Industry FH Geneva, 17 th September 2012

Outline 1. Federation of the Swiss Watch industry 2. Trademarks infringements on the Internet 3. Major issues regarding trademarks on the Internet 4. Self regulation 5. Alternative dispute resolution 6. National and Regional legislations 7. International level 8. Conclusion

1. The Federation of the Swiss Watch industry Swiss watch industry head organization Not for profit, Trade association around 500 members Over 200 brands Headquarters of the FH in Bienne, Switzerland Protection and development of the Swiss watch industry Fight against counterfeiting

2. Trademarks infringements on the Internet has changed the distribution channels and boosted global demand for counterfeits Low cost visibility , global market, lack of entry barriers, "lawless" feeling, late recognition by politics, etc. . As a result: A more and more significant part of counterfeiting is being distributed through the Internet

2. A global issue. Example of a website (1) www. replicawatch. com whois Whois IP Whois DN Details whois DN % Information related to '80. 82. 65. 0 - 80. 82. 65. 255' inetnum: 80. 82. 65. 0 - 80. 82. 65. 255 netname: NL-ECATEL descr: AS 29073, Ecatel LTD country: NL admin-c: EL 25 -RIPE tech-c: EL 25 -RIPE status: ASSIGNED PA mnt-by: ECATEL-MNT mnt-lower: ECATEL-MNT mnt-routes: ECATEL-MNT changed: noc@ecatel. net 20100930 source: RIPE Domain Name: COOL-WATCHES. COM Registrar: BIZCN. COM, INC. Whois Server: whois. bizcn. com Referral URL: http: //www. bizcn. com Name Server: NS 1. COOL-WATCHES. COM Name Server: NS 2. COOL-WATCHES. COM Name Server: NS 3. COOL-WATCHES. COM Status: client. Delete. Prohibited Status: client. Transfer. Prohibited Updated Date: 09 -jul-2010 Creation Date: 15 -nov-2003 Expiration Date: 15 -nov-2011 >>> Last update of whois database: Fri, 18 Feb 2011 13: 56: 59 UTC <<< Queried whois. bizcn. com with "cool-watches. com". . . Domain name: cool-watches. com Registrant Contact: Barry Lyndon dshrupkin@gmail. com +7. 4951725684 fax: +7. 4951725684 Salisbury Road Star House. Room 1403 -5 Hong Kong 999077 hk

2. A global issue. Example of a website (2) whois Whois IP Whois DN Registrar Details whois DN % Information related to '80. 82. 65. 0 - 80. 82. 65. 255' inetnum: 80. 82. 65. 0 - 80. 82. 65. 255 netname: NL-ECATEL descr: AS 29073, Ecatel LTD country: NL admin-c: EL 25 -RIPE tech-c: EL 25 -RIPE status: ASSIGNED PA mnt-by: ECATEL-MNT mnt-lower: ECATEL-MNT mnt-routes: ECATEL-MNT changed: noc@ecatel. net 20100930 source: RIPE Domain Name: COOL-WATCHES. COM Registrar: BIZCN. COM, INC. Whois Server: whois. bizcn. com Referral URL: http: //www. bizcn. com Name Server: NS 1. COOL-WATCHES. COM Name Server: NS 2. COOL-WATCHES. COM Name Server: NS 3. COOL-WATCHES. COM Status: client. Delete. Prohibited Status: client. Transfer. Prohibited Updated Date: 09 -jul-2010 Creation Date: 15 -nov-2003 Expiration Date: 15 -nov-2011 >>> Last update of whois database: Fri, 18 Feb 2011 13: 56: 59 UTC <<< Queried whois. bizcn. com with "cool-watches. com". . . Domain name: cool-watches. com Registrant Contact: Barry Lyndon dshrupkin@gmail. com +7. 4951725684 fax: +7. 4951725684 Salisbury Road Star House. Room 1403 -5 Hong Kong 999077 hk Owner Host provider

2. A global issue. Example of a website (3) www. replicawatch. com Consumer

Example on social media

Example on social media Promotion of counterfeits by using social media Social media hosted in the US / users subject to US law The seller pretends to be in the Netherlands In reality: products are sent from Thailand

3. Major issues regarding trademarks on the Internet Territorial issue vs/ global and international issue Smugglers know how to take advantage of global nature: at least 4 or more different countries are involved How to tackle this problematic ? How to balance interests of legitimate sellers, consumers, right owners in order to establish a « fairplay market » ? Emergence of a global soft Law

4. Self regulation / informal agreements Ex: Marketplaces, social medias. . . If an agreement could be met with Right Owners on a minimal enforcement level and cooperation • Ex: e. Bay, Taobao, You. Tube… • Clients/users: should accept the policy defined by the Platform when they register for a new account • Trademarks should generally be registered in the country of origin of the Platform (≠ infringer) or where the item is available for sale.

5. Alternative dispute resolution (1) Should be accepted by parties and/or included in general provisions in a contractual context Existing for domain names (WIPO arbitration) Possible only because ICANN makes compulsory for the accredited registrars to implement the Arbitration rule in their general agreements for generic top level domains A new challenge for the future generic extensions

5. Alternative dispute resolution (2) Quick and efficient A unique regulation / legal basis Trademark does not need to be registered «worldwide » Rather costly in regard of the registration fee for a generic domain name (< USD 10. 00) Only if trademark included in the domain name

6. National and Regional legislations Necessary step to establish the base : a registered and valid trademark Regional or Supranational entities may also edict Directives/ Regulations in order to obtain a minimal standard in Members States' legislation (enforcement, …).

7. International level Different approaches are possible. . Some provocative ideas: Extend the territoriality: idea of a “global” or worldwide trademark system, with no countries boundaries, but limited on the Internet (“ 6 th continent”) Extend the enforcement on the Internet: recognize a trademark infringement, as soon as the trademark is protected and information accessible in the country of origin of the trademark

8. Conclusion All issues are complementary and should be considered The fact that some major Internet intermediaries are predominant eases the emergence of a global soft law Internet should overcome domestic and national barriers to enhance trademarks’ enforcement

Thank you! Federation of the Swiss Watch Industry FH Rue d'Argent 6 2502 Bienne Tél. +41 (0)32 328 08 28 Fax +41 (0)32 328 08 80 www. fhs. ch caubert@fhs. ch