Thursday, September 13, 2018

GDPR's Eephus Pitch to Trademark Enforcement


The changes to the European privacy laws, earlier this year, has brought about a real set of challenges to the enforcement of trademarks.  Much like an Eephus pitch in baseball[1], the General Data Protection Regulation (GDPR), first initiated in 2012, has made its slow journey with passage in May, 2018, causing a real scramble in the IP community.  It did so by making the personally identifiable information on the WHOIS database inaccessible, leaving trademark owners struggling to figure out how to track down infringers. 

GDPR regulates the privacy and data of individuals in the EU.  With the passage of these regulations, it attempts to ensure that individuals in EU be guaranteed:
  • Protection of the individual’s data by requiring that it not be publicly available
  • Ease in transferability of their data from one provider to another
  • A right of erasure of your information
  • Notification in case of breach of their data
Does it affect US based companies?

If you are a US based company that:
  • Provides goods and services to the citizens of EU, or
  • Has a web presence/provides marketing material online targeted to the EU citizen located in EU (e.g. presented in the country’s local language and targeted to the citizen of that country), or
  • Accepts local currency. (See Forbes).
Then, GDPR will apply to you.

How does it affect trademark owners?

Due to the regulatory changes under GDPR, data that was crucial in identifying trademark counterfeiters will no longer be easily accessible due to stricter privacy laws.   

The information that identifies all domain name registrants is stored on the WHOIS database. This database is regulated by ICANN (Internet Corporation for Assigned Names and Numbers).  This database maintains a list of a domain registrant’s name, email, telephone and physical contact information. ICANN has traditionally entered into contractual agreements with domain registrars which ensured that such information of the registrants on their domain be listed and accessible.  Therefore, the very purpose and nature of WHOIS for trademark owners roots from the accessibility to information available in that database.  Although it has long been argued that the system is flawed as it had become very easy for registrants to provide false information, uptil now, this database served as a first point of contact with a trouble making registrants (source of malware or counterfeiters, etc).  Nonetheless, it served as a viable course of action to deal with counterfeiters/ infringers.  A trademark owner could initiate the enforcement process by investigating and sending a cease and desist letter to the counterfeiter’s associated email address, for example, found on the WHOIS database. 

Now, GDPR has thrown a real wrench into that by safeguarding the contact information and not having it be publicly available. So where does one even begin the task of finding the infringer?

INTA is spearheading the process in identifying methods with which domain name registrants can be found (See Toolkit for IP Professionals).  This is a great resource to start with.  In the interim, ICANN allows for some recourse through its Temporary Specification for gTLD Registration Data.  A trademark owner can request the personally identifiable information of the registrant from the domain registrar when provided with a “legitimate and proportionate purpose for accessing the non-public Personal Data.” However, to comply with the GDPR's requirements of anonymization of private data, contact with registrant itself will be – you guessed it – through an “an annonymized email or web form.”  If all else fails, then one can head straight to court to subpoena the registrars and get the information one seeks. 

In short, it is going to be a long and challenging path for trademark owners, as many more resources will need to be used in order to obtain the information of such counterfeiters.  

This one is best chalked off as a "to be continued".... 

[1] a slow junk pitch that requires the batter to unexpectedly bring all the force and thus throwing the batter off his/her game