Bad Faith (UDRP Element)

Bad faith is the third and often most contested element a complainant must prove in a UDRP proceeding: the disputed domain must have been both registered and used in bad faith (the conjunctive test under WIPO). The UDRP policy lists non-exhaustive examples that panels have treated as presumptive bad faith: offering the domain for sale to the trademark owner at a price above documented costs; registering to block a mark-holder from reflecting their brand online; registering to disrupt a competitor; or intentionally attracting users for commercial gain by creating likelihood of confusion. Panels also weigh circumstantial indicators — the registrant's awareness of the mark at the time of registration, implausible claimed use, and portfolio patterns consistent with cybersquatting. A finding of bad faith triggers a transfer or cancellation order. Conversely, if the panel finds a complainant pursued a UDRP claim it knew could not succeed, the registrant may seek a finding of reverse domain hijacking. Tokenizing a domain on a blockchain does not alter how panels evaluate bad faith; the DNS registration history and the registrant's conduct remain the operative facts. Source: WIPO Arbitration and Mediation Center.