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Why a company might file a lawsuit instead of a UDRP

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Sites causing imminent harm can sometimes be taken down faster through the courts.

An image of justice with scales and the words "lawsuits"

The Uniform Domain Name Dispute Resolution Policy (UDRP) was created as a faster, easier, and cheaper alternative to lawsuits to settle cybersquatting claims. For a filing fee of under $2,000 plus legal time, trademark holders can win the transfer of domains that cybersquat their brands.

But there are cases when it makes sense for a company to go straight to the courts rather than UDRP. One example is when a domain is causing so much harm that the trademark holder needs to get it taken down even faster through a temporary restraining order (TRO).

That’s the case with a lawsuit (pdf) KeyState Holdings, LLC filed this week in U.S. District Court in Arizona.

The company wants to take down the website at KeyStateHoldings[.]com. According to the suit, the site once offered solar tax credit services, which is something the Plaintiff offers. When I visited today, the site offers cryptocurrency services.

According to the suit, the address and corporate registration information at the bottom of the site are that of the plaintiff.

The site was registered in 2019, but KeyState apparently became aware of it when someone walked into KeyState’s offices a couple of weeks ago and showed that he had lost $231,000 through the website.

The judge has set the oral argument for the TRO for July 20. Assuming the judge finds in the Plaintiff’s favor, this will take down the site much faster than a UDRP.

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