Sallen v. Corinthians Licenciamentos LTDA

In 1998, Jay Sallen (plaintiff) registered corinthians.com with a domain-name registry called Network Solutions, Inc. The registration agreement incorporated the Uniform Domain Name Dispute Resolution Policy (UDRP), which provided alternative dispute resolution procedures for Internet domain-name disputes. The UDRP provided that international institutions like the World Intellectual Property Organization (WIPO) settle disputes over cybersquatting, using the UDRP’s rules and procedures. Corinthians Licenciamentos LTDA (Corinthians) (defendant) owned a Brazilian trademark for a popular soccer team. Corinthians filed a complaint with the WIPO, accusing Sallen of cybersquatting with respect to corinthians.com. The arbitration concluded in favor of Corinthians. Sallen had to transfer corinthians.com to Corinthians. Sallen then brought a declaratory judgment action in district court, seeking to regain control of corinthians.com. The district court held that it had no jurisdiction over Sallen’s claim. The district court determined that the dispute was governed by the UDRP and that Sallen could not proceed under the Anticybersquatting Consumer Protection Act (ACPA). The court reasoned that because Corinthians had no intention of suing Sallen under the ACPA, there was no issue of law to support federal-question jurisdiction. Sallen appealed, arguing that the ACPA provides a cause of action for domain-name registrants who want to challenge the results of UDRP arbitration.