Uniform Domain-Name Dispute-Resolution Policy
Uniform Domain-Name Dispute-Resolution Policy (or UDRP) is a policy set up by ICANN to resolve disputes involving trademark infringements on registered domain names. UDRP is the legal process a domain name or trademark owner follows if she wishes to file a legal complaint against another party regarding that party’s infringement on her domain name or trademark.
The disputes are resolved by agreement, court action, or arbitration before a registrar can legally cancel, suspend, or transfer a domain name to the winner of the resolved dispute. ICANN provides a list of approved dispute-resolution service providers.
According to ICANN “To invoke the policy, a trademark owner should either (a) file a complaint in a court of proper jurisdiction against the domain-name holder (or where appropriate an in-rem action concerning the domain name) or (b) in cases of abusive registration submit a complaint to an approved dispute-resolution service provider” (Source: ICANN.org)
Disputes generally involve cybersquatting. As a website buyer, as part of your due diligence, be sure to do a UDRP Dispute Search of the UDRP online database to verify that the domain name of the website you’re acquiring is not involved in any pending UDRP disputes.