What is the UDRP?

Uniform Domain-Name Dispute Resolution Policy

"The Uniform Domain-Name Dispute Resolution Policy (UDRP) has been adopted by ICANN-accredited registrars in all gTLDs (.aero, .asia, .biz, .cat, .com, .coop, .info, .jobs, .mobi, .museum, .name, .net, .org, .pro, .tel and .travel). Dispute proceedings arising from alleged abusive registrations of domain names (for example, cybersquatting) may be initiated by a holder of trademark rights. The UDRP is a policy between a registrar and its customer and is included in registration agreements for all ICANN-accredited registrars."

See here for more info: http://www.icann.org/en/udrp/

All registrars must follow the the Uniform Domain-Name Dispute-Resolution Policy (often referred to as the "UDRP"). Under the policy, most types of trademark-based domain-name disputes must be resolved by agreement, court action, or arbitration before a registrar will cancel, suspend, or transfer a domain name. Disputes alleged to arise from abusive registrations of domain names (for example, cybersquatting) may be addressed by expedited administrative proceedings that the holder of trademark rights initiates by filing a complaint with an approved dispute-resolution service provider.

Unlike what most people think, domains are not "first-come, first served."

The UDRP is the process that a complaintant uses to take away a domain holder's domain.

For domain holders, UDRP is a like "going to court" for your domain. It's not in front of a judge, but instead in front of a panel of three person arbitration.

The UDRP panel will ask these 3 questions to determine whether a domain should be taken from the current owner and given to the complaintant:

1. The domain name is "identical or confusingly similar to" the trademark in question
2. The domain name holder has "no rights or legitimate interests in respect of the domain name
3. The domain name holder has registered, or is using, the domain name "in bad faith."

As you can see, these questions are somewhat subjective. So there is considerable leeway for the arbitration panel. In some cases, the panel may decide that the UDRP filing was completely ridiculous -- this finding is called reverse domain hijacking.

UDRP is often cheaper for the complaintant, than going to court.