Globally unique hub for domain dispute resolution? The Czech Republic

Clients increasingly report falling victim to domain speculators. This year marks a record for our office in the number of domain disputes handled. The Czech Arbitration Court is experiencing a similar surge as it authorised to resolve disputes not only within the .cz and .eu domains but also within the world’s most widely used domains such as .com, .net, and .org. How can one combat speculators, and why is the Czech Republic a unique and ideal place for resolving domain disputes?

Domain speculators[1] persist in their relentless activities. However, in recent years, we have noticed a growing trend of individuals seeking to defend themselves against these speculators. This year has been a record one for our office, as well as for the Czech Arbitration Court,[2] which has seen a long-term increase in the number of domain disputes handled – in 2023 alone, it resolved a total of 980 domain disputes.[3]

If someone falls victim to a domain speculator, they essentially have three options:

• Choose a different name or domain;
• Purchase the desired domain name from the speculator; or
• Defend themselves against the speculator, as described below.

How to Combat Speculators

The first option is to pursue standard legal proceedings, as speculators often infringe on personal names, registered business names, or trademarks with their registered domain names. They also engage in unfair competition very often, typically by free-riding or risk of confusion. The downside of this approach is that it is lengthy. However, a theoretical advantage is the possibility of demanding unjust enrichment or damages from the speculator, although such cases are rare in practice.

The second option is to initiate online Alternative Dispute Resolution (ADR) proceedings. This is a less formal online process that usually takes only a few weeks or months. Through this process, one can request the cancellation or transfer of the disputed domain name. These proceedings can generally be initiated with various providers worldwide, depending on the specific domain. 

One of the ADR providers is the Czech Arbitration Court, which we highly recommend – everything is handled quickly, efficiently, and very professionally. The Czech Arbitration Court not only resolves disputes over domain names within the .cz domain but also within the .eu domain, where it was the sole authorised entity for a long time. Additionally, the Czech Arbitration Court is authorised to resolve disputes under UDRP rules, which cover a large number of domains, including the world’s most widely used domains such as .com, .net, and .org. A list of all domains for which the Czech Arbitration Court is authorised to resolve disputes is listed e.g. here.

The cost of ADR proceedings depends on the specific type of proceeding (.cz, .eu, or UDRP proceedings), the number of disputed domain names, and the number of experts/panellists handling the dispute. Generally, the cost of these disputes starts at 800 EUR. The Czech Arbitration Court currently offers a significant discount for .eu disputes, where proceedings can be initiated for just 100 EUR.[4] Therefore, the best time to initiate disputes concerning the .eu domain is now.

Naturally, a dispute with the Czech Arbitration Court can be initiated by anyone from anywhere in the world. The quality, approach, efficiency, and range of domains the Czech Arbitration Court is authorised to adjudicate make the Czech Republic a globally unique and ideal place for resolving domain disputes.

We have focused on the issue of domain names and disputes for a long time. On our blog, we have published several articles on this topic, discussing the conditions and prerequisites for successful ADR proceedings – this article relates to the .cz domain, and this one to the .eu domain. Moreover, we have experience with disputes before the WIPO[5] and local arbitration courts abroad. If you are troubled by a domain speculator, we would be pleased to discuss further steps with you.