The U.S. Supreme Court recently chose not to hear a significant appeal related to cybersquatting involving the domain name trx.com. This decision came in the context of a dispute that could have clarified the application of the Anticybersquatting Consumer Protection Act (ACPA), especially concerning the timing of domain registrations.
The case began when Loo Tze Ming purchased trx.com for $138,000 in April 2022. By October of the same year, Fitness Anywhere LLC, a company in bankruptcy claiming rights to the TRX trademark, initiated a cybersquatting claim through the UDRP process. The following month, a panel awarded the domain to Fitness Anywhere in a decision that sparked controversy.
Ming, having missed the dispute notice, responded by filing a suit in Arizona to prevent the transfer. However, the case was complicated by the bankruptcy proceedings of Fitness Anywhere. Subsequently, a related entity, JFXD TRX ACQ LLC, initiated an in rem lawsuit against trx.com in Virginia, where the .com registry is located. This move raised eyebrows, as JFXD TRX was aware of Ming’s ownership.
After successfully arguing to have the in rem case transferred to Arizona, the original 1999 registration date of trx.com became pivotal. The Arizona court ruled based on that original registration, which predated JFXD TRX’s foundation, ultimately ruling in favor of Ming. The judge highlighted several inconsistencies in JFXD TRX’s arguments and ordered the company to cover Ming’s legal fees amounting to approximately $40,000.
After the district court’s ruling, JFXD TRX attempted to appeal, but their request was denied. The International Trademark Association had previously urged the Supreme Court to consider the case to address discrepancies in how different circuit courts determine when a domain is considered "registered." While some circuits use the original registration date, others treat a change in ownership as a new registration.
In a final twist to the saga, it emerged that Fitness Anywhere’s original UDRP filing might have been deceitful, as the company had sold its trademarks before initiating the proceeding.
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