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The important business of domain names related to the coronavirus: simple speculation or sophisticated scams?

Written by Dreyfus08/06/2020

Individuals, entrepreneurs, professional url brokers… all are trying to buy and resell domain names with keywords related to the virus. The prices go up to several thousand euros. For example “corona-vaccination.fr” was bought on March 16 by a German developer, who is now offering it for sale for 9,000 euros.

The DomainTools search team began monitoring the terms related to Covid-19 in February 2019. From a slight increase in domain names using the terms “Coronavirus” and “COVID-19” at the begining, to registrations with a significant spike in recent weeks, it is clear that many of them are scams!

Among them, there is a site developed by a private individual offering the user to install an Android application called “CovidLock”, claiming to have a tool for monitoring the epidemic in real time.  In reality, it is a ransomware that asks for of $100  Bitcoins. Thanks to a proactive “hunt”, DomainTools detected it within hours of its creation, before it claimed any victims, and was able to obtain the scammer’s Bitcoin wallet.

Many domain names that should be watched closely at the height of the epidemic, are paving the way for resale at hefty prices or for cyber attacks!

 

Dreyfus can assist you in the management of your trademarks portfolios in all countries around the world. Do not hesitate to contact us.

 

Source: https://www.domaintools.com/resources/blog/covidlock-mobile-coronavirus-tracking-app-coughs-up-ransomware

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A Complainant who claims an old domain name must demonstrate its use in order to justify prior rights

Written by Dreyfus12/05/2020

Source: WIPO, Arbitration and Mediation Center, Jan. 22, 2020, No. D2019-2992, Cyberplay Management Ltd v/ WhoisGuard Protected, WhoisGuard, Inc./DIREX NV and Johann Mayer.

The Maltese company Cyberplay Management holds a gaming license for the purpose of operating an online casino. The latter owns the European trademark “Loki”, deposited on January 10, 2017 and registered on 6 September 2017, as well as the domain name <loki.com>, registered in 1992 and currently operated for online casino services. Said Company filed a UDRP Complaint before the WIPO Arbitration and Mediation Center against the domain names <lokicasino16.com>, <lokicasino17.com>, <lokicasino18.com>, <lokicasino19.com> and <lokicasino.com>, with the prejudice that they infringe its rights. Indeed, they associate the “Loki” trade mark with the term “casino”, which refers to its activity. The domain name <lokicasino.com> had been registered on May 16, 2016 and the other four domain names on January 11, 2017 (one day after the registration of the Complainant’s trademark,).

At the time the Complaint was filed, the Respondents were using these domain names in connection with an online casino. The Complainant considers that the Respondents registered and used the domain names in bad faith. The Respondents, for their part, claim that they never had knowledge of the applicant and its trademark. In addition, the Respondents have provided several screenshots, taken from the WayBack Machine website databases (archive.org) of the history of the Complinant’s website, showing the latter has never used the domain name <loki.com> for casino activities prior to the current period. For example, in 2006, it referred to a site allowing the user to find all types of events near their location.

The expert ruling on the case concludes that the complaint must be rejected, since the applicant did not provide evidence showing it was the holder of trademark rights for the sign “LOKI” at the time of registration of the disputed domain names. The trademark application was filed after the registration of the domain name <lokicasino.com > owned by the Respondents. Furthermore, in regard to the law on unregistered trademarks (right of use), the Complaint does not submit any evidence of use of the sign “LOKI” in connection with the services of an online casino. Thus, it is important to recall that in order to prosper in a UDRP proceeding, it is imperative for a Complainant to submit evidence establishing, in particular, the registration and use of a domain name in bad faith. In this case, the Complainant failed to provide such evidence. This decision also shows the growing importance of the archives proposed by WayBack Machine, which the judges now tend to accept as evidence (subject to justifying a bailiff’s report).

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The rise of phishing in the midst of the coronavirus crisis

Written by Dreyfus07/05/2020

Source: Bank Info Security, Feb. 11, 2020

 

The global health crisis caused by the coronavirus is a favorable context for phishing techniques. Indeed, many organized gangs of cybercriminals are pretending to be health organizations by using fake domain names. As a result, they send an e-mail pretending to be a health-related entity, in which they ask the recipient to click on a link and enter or confirm a login and password. For example, cybercriminals therefore send phishing e-mails containing domain names similar to those used by the Centers for Disease Control and Prevention. For example, cybersquatters have incorporated the domain name “cdc-gov.org” which is similar to the official domain name “cdc.gov”.
Thus, these malicious e-mails encourage users to click on a link that looks like it contains information related to the issues related to the coronavirus. In fact, Internet users are redirected to a fake website where they have to enter a username and password. In other cases, cybercriminals send phishing e-mails looking like they originate from the World Health Organization, inviting users to a link to download a document on security measures against the spread of the virus. Of course, this is not the case and users are redirected to a pop-up screen asking for a username and a password. It should be noted that some cybercriminals adopt a different tactic by posing as entities linked to the world of economics, such as shipping companies or manufacturing industries. The coronavirus crisis can have an impact that extends beyond health concerns. Hence, it is necessary to be doubly careful about the extension of these phishing campaigns, alert may be raised for example by e-mails containing numerous spelling mistakes.

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The <.eu> extension against Brexit

Written by Dreyfus06/05/2020

Source: EURid, registry of the <.eu> extension 

The United Kingdom parted from the European Union on January 31, 2020. As a result, the United Kingdom and the European Union entered into a transitio period, a period that has been announced to last till December 31, 2020. During this period, UK residents are still entitled to register and renew names in <.eu>.

However, once this period expires, they will no longer be able to register domain names with the <.eu> extension, nor to keep those they already hold, unless they comply with the requirements. The EURID originally detailed a comprehensive plan that was supposed to be implemented from November 1, 2019, the date when the United Kingdom was due to leave the European Union. It will finally apply at the end of the transition period, although no precise deadlines have yet been set. Once the transition period ends, only the following persons are entitled to register domain names in <.eu>: a citizen of the European Union, regardless of his/her place of residence; a natural person who is not a citizen of the Union European but is a resident of a Member State; a company established in the Union; or an organization established in the Union, without prejudice to the application of national law.

Thus, for already registered domain names, registrants will be able to update their contact details in an attempt to maintain their assets. In particular, they will have to indicate a country code of citizenship corresponding to a Member State of the European Union of 27 regardless of their residence or establish an entity legally established in one of the eligible Member States of the European Union of 27 or the EEA. All registrants who do not comply with these eligibility rules will see their domain names cancelles such the domain names will then be available for registration to all.

As non-compliant domain names will be withdrawn, it is appropriate to carry out a thorough analysis of registrants’ domain name portfolios to see whether any of their registrations is at risk.

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Registries and artificial intelligence

Written by Dreyfus05/05/2020

A number of national top-level domain name registries such as the English registry Nominet have begun to use artificial intelligence to prevent abusive domain name registrations. Each registry uses its own system to suspend registrations if they believe there is suspicious activity on an IP address or if the identity of the applicant cannot be verified.

 

Ongoing assessment of the identity of the registrant thus helps reducing domain name infringements.

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The liberalization of prices for domain names in <.com>: a possible increase from2021

Written by Dreyfus04/05/2020

The gTLD <.com> apparently occupies more than 40% of the domain name market share, according to statistics provided by the site www.domainnamestat.com. These results confirm that it is an unavoidable extension, especially because the <.com>, which addresses the whole world, is a strong rallying sign.

However, the negotiations in progress between ICANN and the <.com> registry, VeriSign, could lead to a modification of the approval on this extension, so that the <.com>’s price would increase by possibly 7% per year, from 2021 to 2024. In return for this right, VeriSign would pay $4 million to ICANN.

 

This negotiation is notably allowed by an amendment accepted by the American Department of Commerce, datedOctober 26, 2018, by which it was indicated that “in view of the more dynamic market of domain names, the Department considers it advisable to modify the cooperation agreement in order to provide flexibility in the prices related to the registration and renewal of domain names of the .com registry”.

If the price of <.com> increases, it will be relevant to see whether other TLDs recover some of its market shares, especially among the new gTLDs. If it seems unlikely that companies will abandon the names in <.com> that they already hold, newcomers to the market could possibly prefer other extensions.

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Association between blockchain and domain names

Written by Dreyfus24/04/2020

Domain names appear to be a fertile ground for innovators related to blockchain technology.

 

 

Domain names and blockchain meet around the launch of the new extension “.luxe”, which contrary to what one might think was not created for the luxury industry (which already has its extension “.luxury” launched in 2014). The Ethereum foundation, whose aim is to promote blockchain technology, has entered into a partnership with the Minds + Machines (MMX) registry to create a new use for domain names, making “.luxe” the equivalent for cryptocurrency of what a classic extension represents for the IP address.

 

 

This association thus makes the IP addresses for the “.luxe” extension more intelligible.

 

 

Indeed, holders can link their domain name composed of the “.luxe” extension to their Ethereum account to replace their 40 characters identification number and make it easier to remember and use.

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Provisional French patent applications for a simplified registration are now possible

Written by Dreyfus20/04/2020

With the publication of Decree No. 2020-15 adopted for the application of the PACTE law, it is now possible to file provisional patent applications as of July 1, 2020.

 

  • What is a Provisional Patent Application ?

A provisional application is a patent application whose registration procedure is simplified since certain filing requirements may be deferred in time. It is a procedure which permits the setting of an earlier filing date.

 

  • What is the Objective of a Provisional Application ?

This procedure is intended to allow companies to file patent applications before the French National Institute of Intellectual Property (“INPI”) in a simpler and less costly way. Therefore, it aims to facilitate access to IP protection, especially for start-ups and SMEs. The main objective is to provide a more flexible procedure for registration of patents.

 

  • How to File a Provisional Application?

With this Decree, it is possible to file a provisional patent application and defer the submission of the claims, the technical content of the invention and a copy of the prior filings.

On the other hand, the applicant is obliged, when filing the application, to indicate explicitly that this is a provisional application.

 

  • After Filing the Provisional Application

Within twelve months of the filing date of the provisional application, the applicant may request that his provisional application be transformed into a “normal” patent application (by completing the above-mentioned requirements that he had previously deferred) or that his application be converted into a utility certificate.

At the end of this period, the provisional patent application is withdrawn. Ultimately, this procedure allows applicants to gain additional time before deciding on the future of their applications.

 

  • Payment of the Filing Fees

The applicant must pay the filing fee within one month of the filing date. However, the applicant may pay the fee for the search report within one month of making a request to turn the patent application into a normal one.

 

 

This less stringent registration procedure will allow applicants to apply for patents in a more flexible way, under certain conditions. It will render it possible to fix the date of creation of an invention and then to determine what action will be taken later on with regard to its protection.

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The reform of the tax regime for patentable products: “the French-style IP BOX“

Written by Dreyfus17/04/2020

The 2019 Finance Act harmonizes French and European tax rules in order to best promote the investment of patentable creations and inventions. We are talking about the French IP Box.

Thus, the taxation regime for the products of patents and similar industrial property rights is brought into line with OECD provisions.

While Irelandwas the first country to set up this system (1973), other countries followed suit, such as Belgium, China and, more recently, the United Kingdom (2013).

The principle allows companies to benefit from a tax advantage on their intellectual property assets with a tax rate that amount to 10% instead of 33% previously.

 

 

 

 

 

Eligible assets

The assets that are eligible for this plan are:

 

  • Patents and patentable inventions
  • Certificates of utility
  • Plant variety certificates
  • Copyrighted software

 

To be eligible, inventions must have been filed. Taking into account that the regime is open to software protected by copyright. It should also be added that this plan is applicable to annual net income calculated after deducting research and development expenses. The aim is to encourage research and development efforts in relation to the overall effect, i.e. in relation to all the investments that the company can make.

 

To be eligible for the reduction rate, the company will have to provide several elementsto establish its file such as:

  • Eligible assets
  • The rule for determining the protection of the proportion of net income taxable at a reduced rate
  • The method for allocating research and development expenses.

 

This makes it possible to monitor the company’s expenses and, above all, to justify the request for a reduction in the tax rate. It will be necessary to submit this file to the tax authorities under penalty of a 5% penalty. 

 

The tax rate

The regime consists in deducting first the proceeds of sale and concession as well as research and development expenses and then, in a second step, calculating from this deduction the net result in order to obtain the net result of the assets on the basis of the Nexus ratio. 

 

What is the Nexus ratio? 

The idea is to limit “the preferential regime in proportion to the part of the expenditure relating to intellectual property. »  

 

This is how the OECD defines this ratio. This is intended to sanction patents acquired and research and development costs subcontracted to affiliated companies. It should be noted that research and development costs in third party companies will not penalize the Nexus ratio. This ratio will be calculated on a cumulative expenditure basis.

Some consider this ratio a “not irrefutable presumption.” 

 

 

Conclusion

 

The advantage of this regime is that it will encourage companies to their research and development in France and produce quality intellectual property assets that generate income.

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Webinar April 7, 2020: Internet and Compliance (part 1)

Written by Dreyfus15/04/2020

Webinar : Internet and Compliance (part 1)

 

The rules of the game have changed,

strategies to protect the company and its leaders.

 

 

 

 

The legal, regulatory and fiscal constraints (resulting in particular from the Sapin 2 Law, the LCEN or the EU
Directive of 23 October 2019 on the protection of whistleblowers) that weigh on companies are increasingly rigorous. Companies must implement a governance policy capable of minimizing their responsibility and exposure to their customers, shareholders and the competent authorities.

 

 

Among the aspects to be considered in the context of this compliance are domain names. While they are an undeniable corporate asset, they are also vectors of risk: phishing, fraud against the president, fake sites, identity theft, forged e-mails, and so on.

 

In the event of a breach, they can also damage the reputation of the company and its managers, resulting in a loss of customers. It is therefore imperative to put in place the appropriate strategies to anticipate the dangers, react effectively in the event of an attack and ultimately protect the company.

 

The current situation linked to the coronavirus epidemic is increasing the risks, with the number of frauds increasing considerably while companies are disorganized and vulnerable.

We propose to analyse these issues with you, sharing our experience. In particular, we will be able to answer the following questions:

– What are the obligations of companies with regard to compliance?

– What are the risks to be anticipated?

– What strategies should be implemented to do so?

– What are the control points?

– What levers should be implemented to react effectively in the event of a proven breach?

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