Blockchain domain names: the birth of the Web3 Domain Alliance (W3DA)

A few blockchain domain name operators, including Unstoppable Domains, have created the Web3 Domain Alliance or W3DA (web3domainalliance.com). To date, the W3DA comprises the following companies:

The members of the W3DA set themselves several objectives:

• promoting the development of a blockchain domain name ecosystem with and through traditional web applications;
• ensuring consumer protection by ensuring the interoperability of blockchain domain registries;
• working towards the market and public recognition and acceptance of blockchain domain names;
• promoting the policy of the alliance.

It should also be noted that the members of the W3DA mutually adhere to the principle of “first come, first served”. The W3DA thus intends to avoid duplication and discord. The question of implementing the “first come, first served” principle arises (iptwins.com, 2022-10-25) in the dispute between Unstoppable Domains and Handshake over the blockchain top-level domain .WALLET (iptwins.com, 2022-09-27). The W3DA seems to justify this position on the grounds of intellectual property law. However, concerning trademark law, an operator could only claim intellectual property right on top-level domains (TLD) that do not reproduce generic terms. In this regard, no company can claim a trademark or exclusive intellectual property right on the .WALLET TLD (iptwins.com, 2022-09-27). In addition, the W3DA defends the idea of ​​granting a trademark right through commercial use, which is valid in the United States but not in other jurisdictions such as Europe and China. On the other hand, it is reasonable for operators to mutually respect the “first come, first served” principle on an ethical basis vis-à-vis third parties, Internet users, authorities, and holders of intellectual property rights.

Consistent with this policy, Unstoppable Domains recently waived its rights to the .COIN TLD (iptwins.com, 2022-10-25). In this context, in the absence of any settlement agreement between Unstoppable Domains and Handshake, it is hard to imagine the latter joining the W3DA in the near future.

The W3DA forms a group we have been calling for (iptwins.com, 2022-08-30). One could say that by stimulating the W3DA, Unstoppable Domains wanted to unite around selected competitors sharing a common legal point of view in order to assert its consistency and good faith before the judge in the context of the dispute over the .WALLET TLD. But we could also consider that the latter offers the opportunity to build the foundations of an appropriate legal framework, respectful of the laws in force, Internet users, and intellectual property rights. The W3DA seems to want to work in this direction. One way or another, the erection of common principles and values ​​will have to be imposed on all operators. It must be recognized that these operators had rushed into a legally immature market. As usual, the legal aspects are catching up with technical progress.