Wal-Mart seems to have been particularly vigilant lately about protecting itself from third parties setting up websites critiquing Wal-Mart and its practices. See, for example, recent blog postings by Eric Goldman, Kevin Heller, and an article from SiliconValley.com.

Wal-Mart recently scored a victory in an arbitration proceeding under the Uniform Domain Name Dispute Resolution Policy (“UDRP”) before the World Intellectual Property Organization (“WIPO”) against Jeff Milchen, a self-proclaimed critic of Wal-Mart from Bozeman, Montana who registered the domain name “walmartfacts.biz”.

The arbitration panel took great liberty with the factors set forth in the UDRP to determine that Milchen registered the domain name in bad faith. The panel found that Wal-Mart had “not adduced sufficient facts to show the existence of one of the bad faith elements under paragraph 4(b) [of the UDRP].” Instead, the panel noted that the 4(b) elements are not exclusive, and looked at “the totality of the circumstances surrounding the registration and use of the Domain Name” to determine that bad faith existed.

In taking this “totality of the circumstances” approach, the panel considered four factors to find that the domain name was registered in bad faith. First, the respondent had not used the domain name to post content constituting fair use or any other legitimate purpose. Second, the respondent knew of Wal-Mart’s trademark rights when he registered the domain name in January of 2005. Third, the respondent’s “admitted animus” was an indication of actual malice and ill will toward Wal-Mart. Fourth, the use of the entire Wal-Mart trademark in the domain name made it difficult for users of the Internet to infer a legitimate use of the domain name by the respondent.

Wal-Mart Stores, Inc. v. Milchen, Case No. D2005-0130 (April 10, 2005).