Role and responsibility of internet intermediaries in the

field of trademarksFederation of Swiss Watch Industry FH

Geneva, 17th 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

Protection and development of the Swiss watch industry

Fight against counterfeiting

Headquarters of the FHin Bienne, Switzerland

2. Trademarks infringements on the Internet

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)

Whois IP % Information related to '80.82.65.0 - 80.82.65.255'

inetnum: 80.82.65.0 - 80.82.65.255netname: NL-ECATELdescr: AS29073, Ecatel LTDcountry: NLadmin-c: EL25-RIPEtech-c: EL25-RIPEstatus: ASSIGNED PAmnt-by: ECATEL-MNTmnt-lower: ECATEL-MNTmnt-routes: ECATEL-MNTchanged: noc@ecatel.net 20100930source: RIPE

Whois DN Domain Name: COOL-WATCHES.COMRegistrar: BIZCN.COM, INC.Whois Server: whois.bizcn.comReferral URL: http://www.bizcn.comName Server: NS1.COOL-WATCHES.COMName Server: NS2.COOL-WATCHES.COMName Server: NS3.COOL-WATCHES.COMStatus: clientDeleteProhibitedStatus: clientTransferProhibitedUpdated Date: 09-jul-2010Creation Date: 15-nov-2003Expiration Date: 15-nov-2011

>>> Last update of whois database: Fri, 18 Feb 2011 13:56:59 UTC <<<

Details whois DN Queried whois.bizcn.com with "cool-watches.com"...

Domain name: cool-watches.com

Registrant Contact:Barry LyndonBarry Lyndon dshrupkin@gmail.com+7.4951725684 fax: +7.4951725684Salisbury Road Star House. Room 1403-5Hong Kong Hong Kong 999077hk

www.replicawatch.com

whois

2. A global issue. Example of a website (2)

Whois IP % Information related to '80.82.65.0 - 80.82.65.255'

inetnum: 80.82.65.0 - 80.82.65.255netname: NL-ECATELdescr: AS29073, Ecatel LTDcountry: NLadmin-c: EL25-RIPEtech-c: EL25-RIPEstatus: ASSIGNED PAmnt-by: ECATEL-MNTmnt-lower: ECATEL-MNTmnt-routes: ECATEL-MNTchanged: noc@ecatel.net 20100930source: RIPE

Whois DN Domain Name: COOL-WATCHES.COMRegistrar: BIZCN.COM, INC.Whois Server: whois.bizcn.comReferral URL: http://www.bizcn.comName Server: NS1.COOL-WATCHES.COMName Server: NS2.COOL-WATCHES.COMName Server: NS3.COOL-WATCHES.COMStatus: clientDeleteProhibitedStatus: clientTransferProhibitedUpdated Date: 09-jul-2010Creation Date: 15-nov-2003Expiration Date: 15-nov-2011

>>> Last update of whois database: Fri, 18 Feb 2011 13:56:59 UTC <<<

Details whois DN Queried whois.bizcn.com with "cool-watches.com"...

Domain name: cool-watches.com

Registrant Contact:Barry LyndonBarry Lyndon dshrupkin@gmail.com+7.4951725684 fax: +7.4951725684Salisbury Road Star House. Room 1403-5Hong Kong Hong Kong 999077hk

Host providerRegistrar

whois

Owner

2. A global issue. Example of a website (3)

www.replicawatch.comConsumer

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: eBay, Taobao, YouTube…

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)

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 (“6th 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 62502 BienneTél. +41 (0)32 328 08 28Fax +41 (0)32 328 08 80

www.fhs.ch caubert@fhs.ch