THE INTERNATIONAL CENTRE FOR EXPERTISE OF THE INTERNATIONAL CHAMBER OF COMMERCE

CASE No. EXP/424/ICANN/41

UNION OF ORTHODOX JEWISH CONGREGATIONS OF AMERICA (USA) vs/ KOSHER MARKETING ASSETS LLC (USA)

This document is an original of the Expert Determination rendered in conformity with the New gTLD Dispute Resolution Procedure as provided in Module 3 of the gTLD Applicant Guidebook from ICANN and the ICC Rules for Expertise.

Before the International Centre for Expertise of The International Chamber of Commerce

EXP/424/ICANN/41 in re !osher" #T$%

EXPE&T %ETE&'INATI(N

)nion of (rtho*ox +e,ish Con#re#ations of America -).A/ (b0ector

vs.

1osher 'ar!etin# Assets $ $ C -).A/ Applicant

Expert Professor Luca G. Radicati di Brozolo

TABLE OF O!TE!T" I II III INT&(%)CTI(N T3E (B+ECT(&4. .TAN%IN5 T3E 'E&IT. (7 T3E (B+ECTI(N III A 9hether the comm:nit; in<o!e* b; the (b0ector is clearl; *elineate* 8 (a) (b) (c) III B (a) (b) (c) III C The position of the Objector.......................................................... 7 The position of the Applicant ........................................................ 9 Determination of the Expert ......................................................... 9 The position of the Objector........................................................ 11 The position of the Applicant ...................................................... 12 Determination of the Expert ....................................................... 12 14 2 6 8

9hether there is s:bstantial comm:nit; opposition to the Application11

9hether there is a stron# association bet,een the 1C( comm:nit; an* the !osher" #T$% strin# (a) (b) (c) The position of the Objector........................................................ 14 The position of the Applicant ...................................................... 14 Determination of the Expert ....................................................... 1 16

III %

9hether the Application creates a li!elihoo* of material *etriment to a si#nificant portion of the 1C( comm:nit; (a) (b) (c) The position of the Objector........................................................ 1 The position of the Applicant ...................................................... 17 Determination of the Expert ....................................................... 1! 22 22

I= C(NC$).I(N = %ECI.I(N

T$is Expert %eter&i'atio' is re'dered i' t$e dispute settle&e't proceedi'(s arisi'( fro& t$e co&&u'it) o*+ectio' to t$e applicatio' for t$e ,.-os$er. (e'eral top level do&ai' /(TL%0 1it$i' t$e fra&e1or- of t$e 2 A!! (TL% Applicatio' Process (over'ed *) t$e 2 A!! (TL% Applica't Guide*oo-3 versio' 2412546547 /t$e ,A5B.0. I 1. INT&(%)CTI(N T$e co&&u'it) o*+ectio' to t$e applicatio' for t$e ,.-os$er. (TL% dated 8arc$ 1#3 241# /t$e ,(b0ection.03 1$ic$ is at t$e ori(i' of t$ese proceedi'(s3 1as filed *) t$e 9'io' of Ort$odox :e1is$ o'(re(atio's of A&erica /O9 ;os$er03 11 Broad1a)3 !e1 <or-3 !< 144473 9"A3 /t$e ,(b0ector.0. T$e O*+ector is represe'ted i' t$ese proceedi'(s *) 8r. %avid E. =eslo13 =ile) Rei' LLP3 1>>6 ; "treet !=3 =as$i'(to'3 % 244463 d1eslo1?1ile)rei'.co&. T$e O*+ectio' is supported *)1@ /i0 "tar5; ;os$er ertificatio'3 2'c3 122 "lade Ave3 "uite #443 Balti&ore3 8% 2124A3 9"AB /ii0 $ica(o Ra**i'ical ou'cil3 2'c.3 2>41 =. Co1ard "t3 $ica(o 2L 6467D3 9"AB /iii0 ;os$er "upervisio' "ervice3 2'c. /;of5;03 241 T$e Plaza3 Tea'ec-3 !: 4>6663 9"AB /i"0 T$e ;as$rut$ ou'cil of a'ada / OR03 #244 %ufferi' "treet3 "uite #4A3 Toro'to3 O'tario3 86B 2 13 a'adaB /"0 ;e$illa ;os$er Los A'(eles3 #7D !ort$ La Brea Ave'ue3 "te 2473 Los A'(eles3 A E44#63 9"AB /"i0 Ort$odox Ra**i'ical Board of Bro1ard a'd Pal& Beac$ ou'ties3 PO Box 674#263 8ia&i Fl ##16754#263 9"AB /"ii0 ;os$er 8ia&i3 Faad Ca;as$rus of 8ia&i %ade3 PO Box 74#22D3 8ia&i3 FL ##1745122D3 9"AB /"iii0 Ra**i'ical ou'cil of alifor'ia3 #>A4 =ils$ire BlvdG 7243 Los A'(eles3 A E44143 9"AB /ix0 Ort$odox Faad Ca ;as$rus of t$e As$-e'azi ;e$ila i' 8exico3 G>43 6t$ Floor3 ol Ro&a !orte3 8exico it) 46>443 8exicoB /x0 T$e Ra**i'ical ourt of 8osco1 ;as$rut$ %epart&e't3 Bi( "paso(li'its$evs-) per. 143 8osco1 1414443 RussiaB /xi0 Lo'do' Bet$ %i' ;as$rut$ %ivisio'3 #4D Ballards La'e3 Lo'do' !12 AGB3 9'ited ;i'(do& /collectivel) t$e ,.:pporters of the (b0ection.0. T$e applicatio' for t$e ,.-os$er. (TL% /t$e ,Application.0 1as filed *) ;os$er 8ar-eti'( Assets LL 3 #E1 Tro) Ave'ue3 Broo-l)'3 !< 1121#3 !<3 9"A /t$e ,Applicant.0. T$e Applica't is represe'ted i' t$ese proceedi'(s *) 8r. Bria' :. =i'terfeldt3 ;atte' 8uc$i' Rose'&a' LLP3 2E44 ; "treet !=3 !ort$ To1er3 "uite 2443 =as$i'(to'3 % 2444>5D11A3 *ria'.1i'terfeldt?-atte'la1.co&3 'e1(tld?-atte'la1.co&. T$e Applica't filed its Respo'se to t$e O*+ectio' /t$e ,&esponse.0 o' 8a) 1#3 241#. O' :u'e 73 241# t$e $air of t$e "ta'di'( o&&ittee of t$e 2'ter'atio'al e'tre for Expertise of t$e 2'ter'atio'al $a&*er of o&&erce /t$e ,Centre.0 appoi'ted as sole &e&*er of t$e Pa'el of Experts Professor Luca G. Radicati di Brozolo3 Ar*lit 5 Radicati di Brozolo "a*ati'i3 1D Fia Al*erto da Giussa'o3 2417D 8ila'3 2tal)3 Luca.Radicati?ar*lit.co& /t$e ,Expert.03 1$o su*&itted $is declaratio' of accepta'ce a'd availa*ilit) a'd state&e't of i&partialit) a'd i'depe'de'ce o' t$e follo1i'( da).

2.

#.

7.

#ee O*+ectio'3 p. A.

D. 6.

T$e file of t$e case 1as tra's&itted *) t$e e'tre to t$e Expert o' :ul) D3 241#. T$ese proceedi'(s are ad&i'istered *) t$e e'tre pursua't to Article #/d0 of t$e !e1 (TL% %ispute Resolutio' Procedure /t$e ,Proce*:re.032 1$ic$ is applica*le *) virtue of its Article 1/d0. T$ese proceedi'(s are (over'ed3 as to &atters of procedure3 *) t$e Procedure a'd *) t$e Rules for Expertise of t$e 2'ter'atio'al $a&*er of o&&erce3 as supple&e'ted *) t$e 2 Practice !ote o' t$e Ad&i'istratio' of ases u'der t$e Attac$&e't to 8odule # of t$e (TL% Applica't Guide*oo-3 !e1 (TL% %ispute Resolutio' Procedure of t$e (TL% Applica't Guide*oo- /Article 7/a0 a'd 7/*0/iv0 of t$e Procedure0. As dictated *) Article 24 of t$e Procedure3 t$e &erits of t$e dispute *efore t$e Expert are to *e decided *) refere'ce to t$e releva't sta'dards defi'ed *) 2 A!!3 i' particular i' "ectio' #.D.7 of t$e o*+ectio' procedures i' 8odule # of t$e AGB /t$e ,(b0ection Proce*:res.03 as 1ell as to a') rules a'd pri'ciples t$at t$e Expert deter&i'es to *e applica*le3 $avi'( due re(ard to t$e state&e'ts a'd docu&e'ts su*&itted *) t$e Parties. T$e *urde' of proof t$at t$e O*+ectio' s$ould *e sustai'ed rests 1it$ t$e O*+ector i' accorda'ce 1it$ t$e applica*le sta'dards. Follo1i'( a' exc$a'(e of correspo'de'ce 1it$ t$e O*+ector a'd t$e Applica't /collectivel) t$e ,Parties.03 t$e Expert issued t$e Expert 8issio' o' Au(ust 13 241#. Pursua't to Article D/a0 of t$e Procedure3 t$e la'(ua(e of all su*&issio's a'd proceedi'(s 1as E'(lis$. 8oreover3 i' accorda'ce 1it$ Article 6/a0 of t$e Procedure3 all co&&u'icatio's *) t$e Parties3 t$e Expert a'd t$e e'tre 1ere su*&itted electro'icall). 2' co'for&it) 1it$ t$e procedural ti&eta*le fixed i' t$e Expert 8issio'3 t$e O*+ector filed its supple&e'tal pleadi'( o' Au(ust 1#3 241# /,.:pplemental Plea*in#.0 a'd t$e Applica't filed its respo'se o' Au(ust 2>3 241# /,&esponse to the .:pplemental Plea*in#.0. O' "epte&*er 23 241# t$e Expert reHuested t$e Applica't to provide t1o clarificatio's a'd (ra'ted t$e O*+ector t$e opportu'it) to repl). T$e Applica'tIs clarificatio's 1ere su*&itted o' "epte&*er 73 241# a'd t$e O*+ectorIs repl) o' "epte&*er E3 241#3 accordi'( to t$e ti&eta*le a(reed 1it$ t$e Parties. 2' accorda'ce 1it$ Article 1E/a0 of t$e Procedure3 a'd i' t$e a*se'ce of a') reHuest *) t$e Parties3 'o oral $eari'( 1as $eld. Article 21/a0 of t$e Procedure provides t$at t$e e'tre a'd t$e Expert s$all &a-e reaso'a*le efforts to e'sure t$at t$e Expert re'ders $is decisio' 1it$i' 7D da)s of t$e ,co'stitutio' of t$e Pa'el.. T$e e'tre co'siders t$at t$e Pa'el is co'stituted 1$e' t$e Expert is appoi'ted3 t$e Parties $ave paid t$eir respective adva'ces o' costs i' full a'd t$e file is tra's&itted to t$e Expert. 2' t$is case3 t$e Pa'el 1as

>.

A.

E. 14.

11.

12.

1#.

17.

Attac$&e't to 8odule # of t$e AGB.

co'stituted o' D :ul) 241#. T$e e'tre a'd t$e Expert 1ere accordi'(l) to &a-e reaso'a*le efforts to e'sure t$at $is deter&i'atio' 1as re'dered 'o later t$a' 1E Au(ust 241# /as calculated i' accorda'ce 1it$ Articles 6/e0 a'd 6/f0 of t$e Procedure0. 1D. Pursua't to Article 21/*0 of t$e Procedure3 t$e Expert su*&itted a draft of $is %eter&i'atio' to t$e e'tre for scruti') as to for& prior to its si('ature. T3E (B+ECT(&4. .TAN%IN5 2' accorda'ce 1it$ "ectio' #.2.2 of t$e O*+ectio' Procedures a'd Article A/a0/ii0 of t$e Procedure t$e Expert &ust first satisf) $i&self t$at t$e O*+ector $as sta'di'( to o*+ect to t$e ,.-os$er. (TL% stri'(. As provided i' "ectio' #.2.2.7 of t$e O*+ectio' Procedures3 for t$ese purposes $e &ust satisf) $i&self t$at t$e O*+ector /i0 /ii0 1>. /a0 1A. is a' esta*lis$ed i'stitutio'B a'd $as a' o'(oi'( relatio's$ip 1it$ a clearl) deli'eated co&&u'it).

II 16.

Bot$ Parties $ave addressed t$e reHuire&e'ts for sta'di'( i' t1o rou'ds of 1ritte' su*&issio's. The $osition of the Objector T$e O*+ector clai&s to *e ,the ol%est an% lar&est 'osher certification or&ani(ation of the )orl%. 1$ic$ traces its roots to 1E27. As of Fe*ruar) 241# it certified over 2>43444 co'su&er products a'd over 7#43444 i'dustrial products3 a'd its certificatio' &ar- $as ac$ieved (lo*al reco('itio'. 2' support of its co'te'tio' t$at it $as a' o'5(oi'( relatio's$ip 1it$ ,the clearl* establishe% comm+nit* of 'osher certification a&encies. t$e O*+ector avers t$at it is ,a lea%in& member of the )orl%)i%e comm+nit* of 'osher certification or&ani(ations.3 i.e. t$e ,or&ani(ations ,that- pro"i%e s+per"ision an% certification to help cons+mers i%entif* pro%+cts that meet the %ietar* re.+irements of /e)ish 0a).. 2t adds t$at it &ai'tai's offices i' !e1 <or-3 Los A'(eles3 :erusale& a'd Bei+i'( a'd certifies -os$er facilities i' 141 cou'tries a'd t$at its sta'dards ,are accepte% in the )i%est ran&e of Ortho%ox /e)ish comm+nities.. T$e O*+ector is re(ularl) co'sulted *) ot$er or(a'izatio's for assista'ce i' t$e develop&e't of policies &odeled after t$ose of t$e O*+ector a'd co'su&ers freHue'tl) tur' to it for (uida'ce i' co&plia'ce 1it$ :e1is$ dietar) la1s. T$e O*+ector is also a &e&*er of t$e ei($t)5&e&*er Associatio' of ;as$rus Or(a'izatio's /,A1(.0. 2' its "upple&e'tal Pleadi'( t$e O*+ector portra)s itself as ,an or&ani(ation that )or's for the benefit of the 1omm+nit*.3 addi'( t$at ,beca+se 'osher certification is comm+nal rather than a+thoritati"e2 'osher certification or&ani(ations rel* on each other in f+lfilment of their %+ties to the broa%er comm+nit* of 'osher man+fact+rers an% cons+mers.. 2t co'cludes t$at ,the 1omm+nit* %eri"es s+bstantial benefit from its on&oin& relationship )ith ,the Objector-..

1E.

24.

/*0 21. 22.

The position of the Applicant T$e Applica't does 'ot dispute t$e O*+ectorIs clai& to *e t$e oldest a'd lar(est -os$er certificatio' or(a'izatio' /,1C(.0 i' t$e 1orld. 2t states t$at t$e O*+ector fails to discuss a' o'(oi'( relatio's$ip 1it$ a clearl) deli'eated co&&u'it)3 &erel) su*&itti'( t$at it $as suc$ a relatio's$ip 1it$ ,an establishe% comm+nit*.3 a'd t$ere*) appare'tl) eHuati'( ,establishe%. 1it$ ,%elineate%.3 'ot1it$sta'di'( t$at t$e ter&s are 'ot eHual a'd do 'ot $ave t$e sa&e &ea'i'( i' t$e AGB. 2t t$e' co'tests t$at t$e o'(oi'( relatio's$ip *et1ee' t$e O*+ector a'd t$e co&&u'it) of ; O is ,for the benefit. of t$e co&&u'it) itself3 si'ce t$e ot$er &e&*ers of t$e co&&u'it) are 'ot t$e O*+ectorIs *e'eficiaries *ut its co&&ercial co&petitors. T$e O*+ectorIs activities *e'efit itself a'd its clie'ts rat$er t$a' ot$er ; Os a'd t$e 1ider -os$er i'dustr). 2t t$e' posits t$at t$e co&&u'it) of ; Os a'd t$e 1ider -os$er co&&u'it) lac- for&al *ou'daries3 si'ce a')o'e ca' clai& to *e a ; O a'd3 eve' u'der :e1is$ la13 differe't certifiers follo1 differe't rules. 2' its Respo'se to t$e "upple&e'tal Pleadi'(3 t$e Applica't adds t$at t$e O*+ector $as 'o &ec$a'is&s for participatio' i' or esta*lis$i'( a'd sustai'i'( a relatio's$ip 1it$ ot$er ; Os. Determination of the Expert T$ere is 'o dispute *et1ee' t$e Parties t$at t$e O*+ector is ,an establishe% instit+tion. a'd t$ere*) satisfies t$e first reHuire&e't for sta'di'(. As to t$e reHuire&e't of a' ,on&oin& relationship )ith a clearl* %elineate% comm+nit*.3 t$e Applica'tIs ar(u&e'ts tur' esse'tiall) o' 1$et$er t$e co&&u'it) to 1$ic$ t$e O*+ector clai&s to *e associated3 i.e. t$e co&&u'it) of ; Os3 is clearl) deli'eated a'd o' 1$et$er t$e relatio's$ip *et1ee' t$e O*+ector a'd t$at co&&u'it) is for t$e *e'efit of t$e latter. O' t$e issue of t$e clear deli'eatio' of t$e co&&u'it)3 t$e Applica'tIs ar(u&e'ts do 'ot differ fu'da&e'tall) fro& t$ose developed to co'test t$e satisfactio' of t$e first su*sta'tive sta'dard for co&&u'it) o*+ectio's3 1$ic$ tur's o' t$e existe'ce of a clearl) deli'eated co&&u'it) /"ectio' #.D.7 of t$e O*+ectio' Procedures0. For t$e reaso's set out i' detail i' "ectio' 222.A/c0 *elo13 t$e Expert is satisfied t$at t$e co&&u'it) of ; OIs o' 1$ose *e$alf t$e O*+ectio' is filed satisfies t$e criteria to *e co'sidered clearl) deli'eated. As to 1$et$er t$e relatio's$ip *et1ee' t$e O*+ector a'd t$e i'vo-ed co&&u'it) of ; Os is for t$e *e'efit of t$e latter3 t$ere is &erit i' t$e O*+ectorIs ar(u&e't t$at3 due to t$e co&&u'al 'ature of -os$er certificatio'3 ; Os rel) o' eac$ ot$er3 a'd t$at t$erefore ot$er ; Os dra1 so&e *e'efit fro& t$e O*+ectorIs activities. T$e fact t$at ot$er ; OIs are co&petitors of t$e O*+ector does 'ot 'ecessaril) detract fro& t$at. 2' a') eve't3 t$e t1o factors t$at relate to t$e ,benefit of the associate% comm+nit*.

2#.

/c0 27. 2D.

26.

2>.

2A.

/t$e ,instit+tional p+rpose. a'd t$e ,re&+lar acti"ities.0 are o'l) t1o of t$e o'es to *e ta-e' i'to co'sideratio' for a fi'di'( of sta'di'( &e'tio'ed i' "ectio' #.2.2.7 of t$e O*+ectio' Procedures. As discussed *elo1 /J 7#03 t$e Expert is satisfied as to t$e satisfactio' of t$e fourt$ factor3 t$e o'e relati'( to t$e existe'ce of for&al *ou'daries arou'd t$e i'vo-ed co&&u'it). 2E. 8oreover3 fro& "ectio' #.2.2.7 of t$e O*+ectio' Procedures it is clear t$at t$e +ud(&e't as to t$e existe'ce of a' o'(oi'( relatio's$ip ca' *e t$e result of a' overall *ala'ci'( of a variet) of factors. 2' t$e ExpertIs opi'io'3 t$e fact t$at t$e O*+ector is a leadi'( &e&*er of t$e 1orld1ide co&&u'it) of ; Os3 t$at it &ai'tai's offices i' a lar(e 'u&*er of cou'tries a'd t$at it is re(ularl) co'sulted *) ot$er ; Os for assista'ce i' t$e develop&e't of policies a'd *) co'su&ers for (uida'ce o' :e1is$ dietar) la1s is a si('ifica't factor i' deter&i'i'( t$e O*+ectorIs relatio's$ip 1it$ t$e co&&u'it). T$ese ele&e'ts3 1$ic$ are alle(ed *) t$e O*+ector3 are 'ot co'tested *) t$e Applica't. 2' li($t of t$ese co'sideratio's t$e Expert is satisfied t$at t$e O*+ector &eets t$e sta'di'( reHuire&e'ts i' co'for&it) 1it$ "ectio' #.2.2.7 of t$e O*+ectio' Procedures a'd is t$erefore eli(i*le to file t$e O*+ectio'. T3E 'E&IT. (7 T3E (B+ECTI(N 2' accorda'ce 1it$ "ectio' #.D.7. of t$e O*+ectio' Procedures3 t$e O*+ectio' ca' *e sustai'ed if t$e Expert ascertai's t$e existe'ce of su*sta'tial oppositio' fro& a si('ifica't portio' of t$e co&&u'it) to 1$ic$ t$e stri'( &a) *e tar(eted. For a s$o1i'( of suc$ oppositio' t$e O*+ector &ust prove t$at@ /i0 /ii0 /iii0 /iv0 t$e co&&u'it) i'vo-ed *) t$e O*+ector is clearl) deli'eatedB t$ere is su*sta'tial co&&u'it) oppositio' to t$e Applicatio'B t$ere is a stro'( associatio' *et1ee' t$e co&&u'it) i'vo-ed *) t$e O*+ector a'd t$e ,.-os$er. (TL% stri'(B t$e Applicatio' creates a li-eli$ood of &aterial detri&e't to t$e ri($ts or le(iti&ate i'terests of a si('ifica't portio' of t$e co&&u'it) to 1$ic$ t$e ,.-os$er. stri'( &a) *e explicitl) or i&plicitl) tar(eted.

#4.

III #1.

#2.

T$e Parties $ave a&pl) de*ated eac$ of t$ese criteria i' t$eir 1ritte' su*&issio's. III A (a) 9hether the comm:nit; in<o!e* b; the (b0ector is clearl; *elineate* The position of the Objector

##.

T$e O*+ector posits t$at for over a ce'tur) ; Os $ave pla)ed a' esse'tial role i' :e1is$ life *) providi'( a *asis upo' 1$ic$ co'su&ers ca' easil) deter&i'e 1$et$er food a'd related products ad$ere to -as$rut reHuire&e'ts. =$e' a respecta*le ; O3 suc$ as t$e O*+ector3 places its seal o' a product3 it si('als to t$e -os$er co'su&er t$at t$e product ad$eres to t$e $i($est sta'dard of :e1is$ la1. T$e

>

co&&u'it) of ; Os *e(a' i' ear'est 1$e' t$e O*+ector e'tered t$e field of -as$rut i' 1E27. %ue to t$e i'creased co&plexit) of &a'ufacturi'( processes a'd t$e (ro1i'( de&a'd for -os$er certificatio' t$e 'u&*er of ; Os $as i'creased ver) si('ifica'tl)3 reac$i'( &ore t$a' 13144 toda)3 spread out i' &a') differe't cou'tries. A&o'(st t$ese a -e) role is pla)ed *) a ,Bi( Five. (roup of (e'erall) reco('ized ; Os3 1$ic$ certif) approxi&atel) >DK of -os$er i'(redie'ts 1orld1ide. T$e A;O serves as a' u&*rella or(a'izatio' for ; Os 1orld1ide. #7. T$e O*+ector co'siders t$at its positio' o' t$e existe'ce of a co&&u'it) of ; Os is co'fir&ed *) t$e Applicatio'3 1$ic$ descri*es t$e &issio' a'd purpose of t$e ,.-os$er. (TL% stri'( as3 inter alia3 ,to promote foo% certification in &eneral.3 stati'( t$at ,the .'osher T0D an% all the %omains +n%er it )ill be +se% to pro"i%e reliable information abo+t 3osher certification2 as an in%+str* an% as concerns 3osher certifie% pro%+cts. a'd ,.'osher T0D aspires to become the premiere reliable so+rce of information on the internet abo+t e"er*thin& to %o abo+t 3osher certification.. T$e O*+ector dra1s furt$er support fro& a' amic+s c+riae *rief filed3 inter alia3 *) t$e Applica't i' a' actio' *efore 9" courts3 1$erei' it 1as asserted t$at t$e courts 1ere ill5eHuipped to deter&i'e 1$et$er a product is 144K -os$er a'd t$at suc$ deter&i'atio's ca' *e &ade o'l) *) :e1is$ reli(ious aut$orities.# Accordi'( to t$e O*+ector3 furt$er ad&issio's re(ardi'( t$e existe'ce of a clearl) deli'eated ; O co&&u'it) co&es fro& t$e state&e't i' t$e Applica'tIs 1e*site t$at3 1$e' a' or(a'izatio' or a' i'dividual puts a -os$er certificatio' o' a product3 t$e) attest t$at t$e co'te'ts a'd &a'ufacturi'( &eet t$eir -as$rut sta'dards. Fi'all) t$e O*+ector 'otes t$at t$e -os$er certificatio' co&&u'it) is t$e focus of several pu*licatio's a'd 'e1sletters3 o'e of 1$ic$ $as a distri*utio' of &ore t$a' A43444 copies a'd so&e of 1$ic$ serve as i'dustr) &o'itors. 2' its "upple&e'tal Pleadi'( t$e O*+ector u'derli'es t$e o*servatio' of 2 A!!Is 2'depe'de't O*+ector t$at ,the notion of 4comm+nit*5 is )i%e an% broa%2 an% is not perfectl* %efine%.7 a'd stresses a(ai' t$at t$e existe'ce of a clearl) deli'eated ; O co&&u'it) $as *ee' reco('ized *) t$e Applica't. 2t adds t$at t$e Applica'tIs defi'itio' of co&&u'it) is excessivel) li&ited3 si'ce t$e level of ,formal bo+n%aries. is o'l) o'e of t$e releva't factors. 2t refers to t$e 2'depe'de't O*+ectorIs positio' t$at a co&&u'it) ca' i'clude a ,comm+nit* of interests2 as )ell as a partic+lar ethnical2 reli&io+s2 lin&+istic or similar comm+nit*. a'd t$at ,a comm+nit* can be %efine% as a &ro+p of in%i"i%+als )ho ha"e somethin& in common ,...- or share common "al+es2 interests or &oals.. T$e -os$er co&&u'it) is u'iHue i' t$at it is defi'ed *) t$e co&&u'it) itself. Fi'all) t$e O*+ector co'tests t$e releva'ce of t$e 2'depe'de't O*+ectorIs lac- of o*+ectio' to t$e applicatio' for t$e ,. at$olic. stri'( i' particular *ecause3 u'li-e t$e at$olic $urc$3 ,'osher is %ecentrali(e% an%
#ee Brief of Amic+s 1+riae i' support of %efe'da't3 6allace ". 1onA&ra 7oo%s2 8nc.2 !o. 125 cv541#D7 /%. 8i''.0 /O*+ectorIs A''ex % to t$e O*+ectio'0. #ee Prof. Alai' Pellet3 2'depe'de't O*+ector3 T$e 2ssue of , losed Ge'eric. (TL%s3 $ttp@LL111.i'depe'de't5o*+ector5'e1(tlds.or(Le'(lis$5versio'Lt$e5issue5of5closed5 (e'eric5(tldsL /O*+ectorIs A''ex B to t$e "upple&e'tal Pleadi'(0.

#D.

&o"erne% b* a comm+nit*..D T$e existe'ce of ot$er pote'tial co&&u'ities associated 1it$ -os$er does 'ot detract fro& t$e separate3 deli'eated co&&u'it) of ; Os. (b) #6. The position of the Applicant

T$e Applica't co'tests t$e c$aracterizatio' of t$e ; O co&&u'it) as clearl) deli'eated o' several (rou'ds. 7irst t$ere is 'o i'ter'al a1are'ess or reco('itio' as a co&&u'it)3 si'ce t$ere is u'certai't) 1it$i' ; Os a'd t$e ,&reater 'osher comm+nit*. a*out 1$at perso's or e'tities are i'cluded i' eit$er co&&u'it). T$ere is 'o ex$austive or aut$oritative list of ; Os3 a'd a')o'e ca' clai& to *e a certifier3 due to t$e a*se'ce of a') accreditatio' or co&&o' sta'dards. #econ%3 t$ere is also 'o pu*lic reco('itio' as a co&&u'it) o' t$e part of co'su&ers. Thir%3 t$e co&&u'it) lac-s a for&al *ou'dar)3 1$ic$ t$e Applica't eHuates 1it$ ,an officiall* reco&ni(e% limitation on membership that %efines )ith certaint* )hat persons or entities are part of the comm+nit*.. 2' t$e case at $a'd t$e criteria as to 1$o ca' *e co'sidered a ; O are u'certai'. 7o+rth3 t$e alle(ed co&&u'it)Is a(e a'd distri*utio' are u'Hua'tifia*le. 7ifth3 t$e alle(ed co&&u'it) is 'ot clearl) deli'eated due to a diversit) of (oals3 values a'd i'terests. T$e Applica't refers to t$e 2'depe'de't O*+ectorIs positio' t$at (e'eric stri'(s 1ould 'ot &eet t$e clearl) deli'eated criteria due to t$e *road defi'itio' of co&&u'it) i' t$e AGB3 *ecause t$e) are used *) people 1$o do 'ot 'ecessaril) s$are t$e sa&e (oals3 values a'd i'terests3 a'd to its fi'di'( t$at t$e ,. at$olic. (TL% does 'ot refer to a clearl) deli'eated co&&u'it).6 2f clear deli'eatio' is i&possi*le for t$e at$olic $urc$3 1$ic$ is ce'tralized3 a fortiori it is i&possi*le for ; Os 1$ic$ relate to a dece'tralized reli(io' 1it$ 1idel) var)i'( defi'itio's3 &e&*ers$ip a'd procedures. T$e Applica't disputes t$at t$e Applicatio' is evide'ce of t$e i'vo-ed co&&u'it)3 si'ce it i'cludes food &a'ufacturers3 1$o& t$e O*+ector does 'ot co'sider part of t$e ; O co&&u'it). T$e -os$er co&&u'it) i'cludes service providers3 suc$ as restaura'ts3 caterers3 $otels a'd truc-i'( co&pa'ies. 2' t$e Respo'se to t$e "upple&e'tal Pleadi'(3 t$e Applica't i'sists t$at a') purported -os$er co&&u'it) is &uc$ *roader t$a' ; Os. T$e lac- of co&&o' certificatio' sta'dards a'd procedures e'tails disa(ree&e't a*out t$e le(iti&ac) of &e&*ers$ip of t$e co&&u'it)3 1$ic$ i' tur' is fatal to clear deli'eatio' of t$e co&&u'it). (c) Determination of the Expert

#>.

#A.

T$e Expert recalls t$at3 i' accorda'ce 1it$ "ectio' #.D.7 of t$e O*+ectio' Procedures3 t$e factors t$at ca' *e *ala'ced to deter&i'e 1$et$er t$e i'vo-ed
#ee Prof. Alai' Pellet3 2'depe'de't O*+ector3 ,. ATCOL2 . Ge'eral o&&e't3 $ttp@LL111.i'depe'de't5o*+ector5'e1(tlds.or(Le'(lis$5versio'Lt$e5i'depe'de't5 o*+ector5s5co&&e'ts5o'5co'troversial5applicatio'sLcat$olic5(e'eral5co&&e'tL /O*+ectorIs A''ex to t$e "upple&e'tal Pleadi'(0. #ee s+pra3 foot'ote D.

co&&u'it) is clearl) deli'eated i'clude3 *ut are 'ot li&ited to3 /i0 t$e level of t$e co&&u'it)Is pu*lic reco('itio'3 /ii0 t$e level of for&al *ou'daries arou'd it a'd 1$at perso's or e'tities are co'sidered to for& it3 /iii0 t$e le'(t$ of ti&e it $as *ee' i' existe'ce3 /i"0 its (lo*al distri*utio' a'd /"0 t$e 'u&*er of people or e'tities t$at &a-e it up. #E. 2' t$e case at $a'd t$e co&&u'it) i'vo-ed *) t$e O*+ector3 i.e. t$e o'e t$at t$e O*+ector ,has i%entifie% itself as representin&. /i' t$e 1ords of O*+ectio' Procedures03 is t$e co&&u'it) of ; Os. T$e Expert does 'ot accept t$e O*+ectorIs ar(u&e't t$at t$e Applicatio' itself a'd t$e amic+s c+riae *rief filed *) ,se"eral major 'ashr+t s+per"ision a&encies.3 i'cludi'( t$e Applica't3 i' proceedi'(s *efore t$e 9" courts> co'stitute a' ac-'o1led(e&e't of t$e existe'ce of a ; O co&&u'it). T$ose docu&e'ts &erel) co'fir& t$e i&porta'ce of certificatio' a'd t$e pre5e&i'e'ce of ; Os over courts i' deter&i'i'( 1$e' a product ca' *e defi'ed as -os$er. Ot$er ele&e'ts cited *) t$e O*+ector are3 i'stead3 releva't. Particularl) i&porta't is t$e u'disputed fact t$at ; Os $ave existed si'ce at least al&ost a ce'tur) a'd t$at t$e) pla) a ver) si('ifica't role i' 1$at t$e Applica't refers to as t$e ,&reater 'osher comm+nit*.3 *ecause t$e) perfor& t$e fu'da&e'tal fu'ctio' of certif)i'( 1$at products co&pl) 1it$ t$e strict reHuire&e'ts of :e1is$ la1. T$eir role a'd aut$orit) are reco('ized *) all t$ose 1$o see- to follo1 t$e dictates of -os$er. 2t is eHuall) 'ot disputed t$at toda) t$ere are over o'e t$ousa'd ; Os t$at operate i' a 1ide ra'(e of cou'tries. 2t is true t$at t$ere is 'o official roster of ; Os or ,officiall* reco&ni(e% limitation on membership. of t$e co&&u'it) at sta-e3 si'ce a')*od) ca' e'(a(e i' -os$er certificatio'3 a'd t$e exact 'u&*er a'd ide'tit) of all t$e ; Os i' existe'ce a'd operati'( at a') o'e &o&e't is i&possi*le to certif). T$ese factors are 'ot of t$e&selves sufficie't to de') t$e existe'ce of a co&&u'it) or its clear deli'eatio'. T$e co&&u'it) of ; Os is &ade up o'l) of ; Os3 a'd t$ese e'tities ca' *e ide'tified as suc$. T$is is sufficie't to co'clude t$at t$ere are sufficie't for&al *ou'daries arou'd t$e co&&u'it). T$e fact t$at a')*od) ca' e'(a(e i' -os$er certificatio' is 'ot a *ar to t$e ide'tificatio' of t$e &e&*ers of t$e co&&u'it)3 i' particular co'sideri'( t$at it is 'ot 'ecessar) t$at t$e ide'tit) of ever) si'(le &e&*er of a (ive' co&&u'it) *e -'o1'. T$ere is 'o reHuire&e't t$at t$e existe'ce of t$e co&&u'it) or t$e ide'tit) of t$e i'dividual &e&*ers *e certified t$rou($ a') t)pe of for&alit). Also t$e fact t$at differe't ; Os follo1 differe't certificatio' sta'dards is 'ot co'clusive. 2t does 'ot e'tail t$at3 co'sidered overall3 ; Os do 'ot s$are co&&o' values3 i'terests a'd (oals3 1$ic$ are t$ose of providi'( certificatio' accordi'( to t$e sta'dards of -os$er i' t$e i'terests of t$e *roader co&&u'it) of t$ose 1$o seeto a*ide *) -os$er rules.

74.

71.

72.

7#.

77.

>

#ee s+pra3 foot'ote #.

14

7D.

T$e Expert is also 'ot persuaded of t$e releva'ce of t$e co'sideratio' t$at t$ere &a) *e ot$er co&&u'ities 1it$ a' i'terest i' t$e ter& ,-os$er. a'd t$at t$e -os$er co&&u'it) i'cludes ot$er cate(ories of i'dividuals a'd e'tities *esides ; Os. T$e existe'ce of a co&&u'it)3 a'd its clear deli'eatio'3 is 'ot precluded *) t$e existe'ce of ot$er co&&u'ities to 1$ic$ a (ive' stri'( &a) *e tar(eted. Fro& t$e O*+ectio' Procedures /i' particular at #522 a'd #52#0 it is clear t$at t$ere 'eed 'ot *e a coi'cide'ce *et1ee' t$e co&&u'it) to 1$ic$ t$e stri'( is tar(eted *) t$e applica't a'd t$e o'e o' *e$alf of 1$ic$ a' o*+ector ca' purport to express oppositio'. 2' a') eve't3 eve' if t$e ; O co&&u'it) 1ere c$aracterized as a su*5co&&u'it) of a *roader co&&u'it) of all t$ose 1it$ sta-e i' -os$er3 it 1ould u'Huestio'a*l) re&ai' a' i&porta't part of t$e overall co&&u'it). T$e refusal of t$e 2'depe'de't O*+ector to o*+ect to t$e ,. at$olic. stri'( is 'ot perti'e't.A 2' t$at case3 t$e 2'depe'de't O*+ector fou'd t$at t$e pu*lic co&&e'ts o' t$e 2 A!! 1e*site did 'ot te'd to prove t$e existe'ce of a deli'eated co&&u'it) a'd did 'ot 'ecessaril) prete'd to express a' opi'io' i' t$e 'a&e of suc$ a co&&u'it). 2' t$e prese't case t$e Expert co'siders t$at t$e ar(u&e'ts adva'ced *) t$e O*+ector do i'dicate t$e existe'ce of a clearl) deli'eated co&&u'it) a'd t$ere is 'o dou*t t$at t$e O*+ector clai&s to express t$e opi'io' of t$e co&&u'it). All t$ese ele&e'ts support t$e co'clusio' t$at t$e co&&u'it) of ; Os i'vo-ed *) t$e O*+ector e'+o)s a certai' level of pu*lic reco('itio' a'd e'co&passes a si('ifica't 'u&*er of e'tities a'd ca' *e disti'(uis$ed fro& ot$er co&&u'ities *) its c$aracteristics a'd specificities. 8ore specificall)3 *ased o' t$e evide'ce3 t$e Expert co'siders t$at t$e co&&u'it) of ; Os e'+o)s a si('ifica't level of pu*lic reco('itio'3 is c$aracterized *) for&al *ou'daries i' t$e se'se t$at it is possi*le to ide'tif) t$e e'tities t$at for& part of it3 $as *ee' i' existe'ce si'ce a co'sidera*le a&ou't of ti&e3 is distri*uted i' &a') parts of t$e 1orld a'd is co&posed of over o'e t$ousa'd e'tities. T$e Expert is t$erefore satisfied t$at t$e co&&u'it) of ; Os3 i' t$e 'a&e of 1$ic$ t$e O*+ectio' 1as filed3 is clearl) deli'eated. III B (a) 9hether there is s:bstantial comm:nit; opposition to the Application The position of the Objector

76.

7>.

7A.

7E.

D4.

2' positi'( t$at oppositio' to t$e Applicatio' is su*sta'tial 1it$i' t$e i'vo-ed co&&u'it) t$e O*+ector poi'ts to t$e ,sheer n+mber of expressions of opposition.3 a'd i' particular to t$e declaratio's of oppositio' fro& eleve' leadi'( ; Os attac$ed to its O*+ectio'. All t$ese opposi'( or(a'izatio's express co'cer' t$at t$e (lo*al -os$er co&&u'it) is li-el) to suffer serious detri&e't fro& t$e &o'opolizatio' of t$e ,.-os$er. stri'( *) a si'(le ; O for its o1' *e'efit. T$e e'tities expressi'( oppositio' to t$e Applicatio' i'clude ,some of the lar&est an%

#ee s+pra3 foot'ote D.

11

most infl+ential 'osher certification or&ani(ations in the )orl%.. Fi'all)3 si'ce 'o si'(le e'tit) co'trols t$e ri($t to t$e ter& -os$er3 t$ere are fe1 ot$er c$a''els t$rou($ 1$ic$ t$e O*+ectio' could $ave *ee' co've)ed. D1. T$e "upple&e'tal Pleadi'( ar(ues t$at t$e Applica't uses Hua'tit) over Hualit) a'd t$at t$e ,s+bstantial. 'ature of t$e oppositio'3 1$ic$ is 1$at is reHuired *) t$e AGB3 ca''ot *e de'ied. T$e supporters of t$e Applicatio' do 'ot $ave t$e O*+ectorIs a'd t$e "upporters of t$e O*+ectio'Is ,si(e or clo+t )ithin the comm+nit*. a'd so&e are 'ot eve' i&partial. T$e fact t$at t$e Applica't is a respected ; O does 'ot &ea' t$at t$e issua'ce of ,.-os$er. do&ai's s$ould *e exclusivel) a'd su*+ectivel) deter&i'ed *) a si'(le ; O to t$e detri&e't of t$e co&&u'it). (b) D2. The position of the Applicant

Accordi'( to t$e Applica't3 t$e O*+ectio' is supported *) less t$a' 1K of t$e purported co&&u'it)3 of 1$ic$ t$e e'tities expressi'( oppositio' are u'represe'tative. 2' particular3 t$e O*+ector a'd t$e "upporters of t$e O*+ectio' represe't o'l) certificatio' of -os$er i'(redie'ts a'd food products3 leavi'( out &a') ot$er esse'tial sectors3 i'cludi'( restaura'ts3 caterers3 *a-eries etc. 8oreover3 t$e parties to t$is dispute are of eHual 1ei($t a'd stature. T$e oppositio' co&es fro& lar(e co&&ercial e'tities a'd ,an +nrepresentati"e sample of re&ional certification or&ani(ations.3 1$ilst t$e Applica'tIs support co&es fro& 21 cou'tries. Also3 t$e Applica't $as passed over a si('ifica't opportu'it) to defe'd ; Os. Fi'all)3 u'li-e t$e Applica't t$at $as *or'e si('ifica't costs for t$e Applicatio'3 t$e O*+ector re+ected t$e Applica'tIs offer of +oi't co'trol of t$e ,.-os$er. stri'( ,citin& fiscal reser"ations.. T$e O*+ectorIs true reaso' for t$e oppositio' is t$at ,i%eall* .'osher )o+l% not exist.3 1$ic$ is of itself a reaso' for dis&issal of t$e O*+ectio' si'ce it is *ased o' o*structio'3 i' co'trast to t$e pri'ciple laid do1' i' "ectio' 7.2.# of t$e AGB /at 751E0. T$e Respo'se to t$e "upple&e'tal Pleadi'( 'otes t$at t$e O*+ector relies o' t$e ,sheer n+mber. of i'(redie'ts purportedl) certified *) t$e oppo'e'ts of t$e Applicatio' a'd t$at t$e 'u&*ers are *ased o' ,%+bio+s statistics.. 2' a') eve't3 t$e 'u&*er of certified products is a &easure of 1or- product3 1$ic$ is 'ot a' AGB factor. For t$e Applica't t$ere is 'o evide'ce of 1orld51ide oppositio'3 t$e oppositio' is li&ited to ,a han%f+l of 4hea"*)ei&ht5 class entities. a'd ,,a- %i"i%e% comm+nit* is not s+bstantial opposition.. 2t also alle(es i'ti&idatio' *) t$e O*+ector. (c) Determination of the Expert

D#.

D7.

Accordi'( to t$e O*+ectio' Procedures /"ectio' #.D.70 t$e factors t$at ca' *e *ala'ced to esta*lis$ su*sta'tial oppositio' to t$e applicatio' 1it$i' t$e co&&u'it) purported to *e represe'ted *) a' o*+ector i'clude /i0 t$e 'u&*er of expressio's of oppositio' relative to t$e co&positio' of t$e co&&u'it)3 /ii0 t$e represe'tative 'ature of t$e e'tities expressi'( oppositio'3 /iii0 t$eir stature a'd 1ei($t3 /i"0 t$eir distri*utio' or diversit)3 /"0 t$eir $istorical defe'se of t$e co&&u'it) i' ot$er co'texts a'd /"i0 t$e costs i'curred *) t$e o*+ector to co've)

12

oppositio'. DD. T$e O*+ectio' is su*&itted *) a' e'tit) t$at is (e'erall) reco('ized as t$e ,ol%est an% lar&est. ; O i' t$e 1orld a'd is supported *) a si('ifica't 'u&*er of ot$er 1ell esta*lis$ed ; Os3 i'cludi'( four of t$e ,Bi( Five. ; Os t$at are alle(ed to certif) approxi&atel) 6#K of -os$er i'(redie'ts 1orld1ide3 a'd leadi'( e'tities i' several &a+or cou'tries. T$e fact t$at t$e 'u&*er of ; Os o*+ecti'( to t$e Applicatio' /t1elve0 is fairl) s&all i' a*solute ter&s 1ould 'ot of itself *e a *ar to co'sideri'( t$eir oppositio' su*sta'tial. Alt$ou($ t$e AGB refers to t$e ,n+mber of expressions of opposition.3 i' t$e ExpertIs opi'io' t$is does 'ot preve't $i& fro& also 1ei($i'( t$e expressio's of oppositio' to t$e Applicatio'. Give' t$eir reco('ized stature a'd 1ei($t 1it$i' t$e ; O co&&u'it)3 t$e O*+ector a'd t$e "upporters of t$e O*+ectio' ca' also *e $eld to *e sufficie'tl) represe'tative of a si('ifica't portio' of t$at co&&u'it). T$e fact t$at t$e Applica't $as eHuivale't stature 1it$i' t$e co&&u'it) does 'ot detract fro& t$e fact t$at t$e O*+ectorsI oppositio' ca' *e su*sta'tial. 2' t$e opi'io' of t$e Expert3 ,s+bstantial. does 'ot 'ecessaril) &ea' ,o"er)helmin&. or reHuire t$at t$e oppositio' *e t$e expressio' of t$e &a+orit) of t$e co&&u'it). T$e o*+ecti'( e'titiesI leadi'( roles a'd 1ei($t 1it$i' t$e co&&u'it) i' a variet) of cou'tries could *e sufficie't for a fi'di'( t$at also t$e fourt$ factor listed i' t$e AGB /t$e o'e relati'( t$e distri*utio' or diversit) a&o'(st t$e sources of oppositio'0 is satisfied. As poi'ted out *) t$e Applica't3 t$e O*+ector $as provided 'o evide'ce as to t$e satisfactio' of t$e t1o re&ai'i'( factors3 i.e. t$e $istorical defe'se of t$e co&&u'it) i' ot$er co'texts a'd t$e costs i'curred *) t$e o*+ector i' expressi'( oppositio'. T$is does 'ot 'ecessaril) e'tail a fi'di'( t$at oppositio' is 'ot su*sta'tial3 si'ce t$e factors listed i' "ectio' #.D.7. of t$e O*+ectio' Procedures are o'l) exa&ples of t$ose t$at ca' *e co'sidered *) t$e Expert3 1$o $as discretio' i' decidi'( 1$et$er t$e i'dividual criteria are satisfied. !o'et$eless3 i' t$is case 'ot o'l) $as t$e O*+ector 'ot provided a') evide'ce o' t$e last t1o factors listed i' t$e O*+ectio' Procedures as i'dicati'( su*sta'tial oppositio'. Also for so&e of t$e ot$er factors discussed a*ove it could *e dou*ted t$at t$e reHuired sta'dard of proof $as *ee' satisfied i' full. O'e could t$erefore $esitate to co'clude t$at3 co'sideri'( t$e releva't sta'dards i'dividuall) or collectivel)3 t$ere is stro'( a'd u'eHuivocal evide'ce of su*sta'tial oppositio' to t$e Applicatio' 1it$i' t$e co&&u'it). T$e O*+ector $as 'ot put fort$ ot$er ele&e'ts t$at t$e Expert 1ould *e per&itted to co'sider i' t$is co'text a'd t$at could *uttress t$e O*+ectorIs case. 2' li($t of t$e ExpertIs co'clusio' i' relatio' to t$e fourt$ factor reHuired for a co&&u'it) o*+ectio' to *e successful /"ectio' 222.%/c0 *elo103 it is i' a') eve't 'ot 'ecessar) to reac$ a fi'al co'clusio' o' t$e su*sta'tial oppositio' criterio'.

D6.

D>.

DA.

DE.

1#

III C

9hether there is a stron# association bet,een the 1C( comm:nit; an* the !osher" #T$% strin#

(a) 64.

The position of the Objector

For t$e O*+ector t$e associatio' *et1ee' ,.-os$er. a'd t$e ; O co&&u'it) is evide'ced *) t$e stri'(Is declared &issio' to ,promote 3osher foo% certification in &eneral an% O3 3osher certification an% its clients in partic+lar.. T$is de&o'strates t$e existe'ce of a -os$er certificatio' co&&u'it) a'd t$e i'tert1i'i'( of t$e co'cepts of -os$er a'd certified products. Furt$er u'eHuivocal ac-'o1led(e&e't of t$e stro'( associatio' *et1ee' t$e stri'( a'd t$e ; O co&&u'it) co&es fro& t$e state&e't i' t$e Applicatio' t$at ,.'osher T0D aspires to become the premiere reliable so+rce of information on the internet abo+t e"er*thin& to %o )ith 3osher certification.. O' t$e ot$er $a'd3 t$e Applicatio'3 s$o1s 'o particular associatio' *et1ee' t$e Applica't a'd t$e stri'( t$at 1ould +ustif) its exclusive do&i'io' over t$e stri'(. T$e stro'( associatio' *et1ee' -os$er a'd t$e ; O co&&u'it) exte'ds *e)o'd ort$odox :e1s. T$e 'eed for certificatio' for foods to *e co'sidered -os$er appears clearl) fro& i'ter'et searc$es. T$e "upple&e'tal Pleadi'( criticizes t$e Applica'tIs relia'ce o' t$e possi*le associatio' of ot$er co&&u'ities 1it$ t$e ter& -os$er o' t$e (rou'd t$at t$e AGB does 'ot reHuire t$at t$e o*+ecti'( co&&u'it)Is associatio' 1it$ t$e applied5for stri'( *e exclusive. (b) The position of the Applicant

61.

62.

T$e Applica't ar(ues t$at ; Os are a su*set of t$e i'dividuals a'd e'tities tar(eted *) t$e Applicatio' a'd u'derstood to *e associated 1it$ -os$er3 1$ic$ are i'te'ded to i'clude &a'ufacturers3 distri*utors3 service providers3 sellers a'd co'su&ers of -os$er food. T$e Applica't co'te'ds t$at t$e associatio' *et1ee' -os$er a'd ; Os is 'o stro'(er t$at t$at *et1ee' art appraisers a'd t$e 1ord art. ;os$er is defi'ed3 eve' *) t$e O*+ector3 as &eeti'( :e1is$ sta'dards3 re(ardless of certificatio'. ; Os are o'l) part of a *roader i'dustr) of e'tities a'd i'dividuals t$at use t$e 1ord -os$er. A') associatio' *et1ee' -os$er a'd t$e alle(ed co&&u'it) is a'cillar) to t$e &uc$ stro'(er o'e 1it$ t$e (reater co&&u'it). T$e fact t$at t$e Applicatio'Is purpose is to provide i'for&atio' o' ever)t$i'( to do 1it$ -os$er certificatio' is 'ot evide'ce of a stro'( associatio'3 1$ilst t$e lac- of a special co''ectio' *et1ee' t$e Applica't a'd -os$er is irreleva't3 si'ce 'o suc$ co''ectio' is reHuired *) t$e AGB. o'su&ers do 'ot associate -os$er 1it$ a')t$i'( ot$er t$a' food products a'd certai'l) 'ot exclusivel) 1it$ ; Os. 2' t$e Respo'se to t$e "upple&e'tal Pleadi'(3 t$e Applica't la*els as ,mislea%in&. t$e su((estio' t$at t$ere ca' *e 'o practice of -os$er la1 1it$out certif)i'( or(a'izatio's a'd reiterates t$e 1ea-'ess of t$e associatio' *et1ee' ; Os a'd -os$er3 ,)hereas a stron& association act+all* exists bet)een the strin& an% the pro%+cers an% cons+mers of 'osher foo%..

6#.

17

(c) 67.

Determination of the Expert

9'der "ectio' #.D.7 of t$e O*+ectio' Procedures3 t$e factors t$at ca' *e ta-e' i'to co'sideratio' to deter&i'e 1$et$er t$ere is a stro'( associatio' *et1ee' ,.-os$er. a'd t$e ; O co&&u'it) represe'ted *) t$e O*+ector i'clude /i0 t$e state&e'ts co'tai'ed i' t$e Applicatio'3 /ii0 ot$er pu*lic state&e'ts *) t$e Applica't a'd /iii0 associatio's *) t$e pu*lic. As 'oted *) t$e O*+ector3 t$e associatio' *et1ee' t$e ,.-os$er. stri'( a'd -os$er certificatio' is u'eHuivocall) poi'ted to *) t$e Applica't itself. T$e Applicatio' /para. 1A/a00 descri*es ,,t-he mission. of t$e stri'( as ,to promote 'osher foo% certification.. 2' para. 1A/*0/i0 it adds t$at t$e do&ai's 1ill *e used to provide i'for&atio' a*out ,3osher certification.3 i' para. 1A/*0/ii0 t$at t$e stri'( ,)ill speciali(e in 3osher 1ertification.3 i' para. 1A/*0/iii0 t$at it ,aspires to become the premiere reliable so+rce of information on the 8nternet abo+t e"er*thin& to %o )ith 3osher certification. a'd i' para. 1A/*0/iv0 t$at t$at t$e do&ai' 1ill *e &ade availa*le o'l) to co&pa'ies t$at i'te'd to use it ,to promote 3osher certification.. T$is i' itself is a po1erful i'dicatio' of t$e li'- *et1ee' t$e stri'( a'd t$e ; O co&&u'it). T$e li'- *et1ee' t$e stri'( a'd -os$er certificatio' is i' a') case al&ost i'$ere't. 2t is true t$at -os$er food does 'ot reHuire a specialized or(a'izatio'3 as re&ar-ed *) t$e Applica't. 2t is eHuall) true3 $o1ever3 t$at ; Os pla) a predo&i'a't role i' deter&i'i'( 1$at is -os$er3 a'd t$at t$is role is reco('ized a'd relied upo' *) t$e (reat &a+orit) of t$ose 1$o use -os$er products. T$e fact3 to 1$ic$ t$e Applica't poi'ts3 t$at t$e ter& -os$er ca' *e associated to a *roader (roup t$at ; Os3 or eve' t$at t$e Applica't i'te'ds to ,tar(et. suc$ a *roader (roup3 does 'ot de&o'strate a lac- of a relatio's$ip 1it$ t$e co&&u'it) i' Huestio'. T$e Expert a(rees 1it$ t$e O*+ector t$at 'ot$i'( i' t$e O*+ectio' Procedures reHuires t$at t$e co&&u'it) represe'ted *) t$e O*+ector *e t$e o'l) o'e $avi'( a ,stro'( associatio'. 1it$ t$e applied for stri'(. T$e Expert is t$erefore of t$e opi'io' t$at t$e criterio' of stro'( associatio' is satisfied3 i' t$at t$ere is a stro'( associatio' *et1ee' t$e ,.-os$er. stri'( a'd t$e co&&u'it) of ; Os. III % 9hether the Application creates a li!elihoo* of material *etriment to a si#nificant portion of the 1C( comm:nit; (a) The position of the Objector

6D.

66.

6>.

6A.

6E.

T$e O*+ector su*&its t$at3 1ere t$e Applicatio' (ra'ted3 t$ere 1ould *e a su*sta'tial co'fusio' as to t$e certificatio' of food products. o'su&ers u'dersta'd t$at t$ere is 'o ce'tral or(a'izatio' respo'si*le for certif)i'( ite&s as -os$er. T$e Applicatio' 1ould da&a(e t$e co&&u'it)5orie'ted 'ature of -os$er certificatio'3 a'd t$ere*) t$e i'dividual e'tities t$at co&pose t$e ; O co&&u'it). T$e Applicatio' &a-es it appare't t$at t$e ,.-os$er. do&ai' is i'te'ded to *e operated

1D

i' a &a''er t$at is 'ot i' t$e i'terests of t$at co&&u'it)3 si'ce t$e Applica't i'te'ds to ,promote ,9- O3 3osher 1ertification an% its clients in partic+lar.. T$e closed 'ature of t$e re(istr) i'dicates t$at t$e Applicatio' 1ould 'ot pro&ote -os$er food certificatio' i' (e'eral a'd t$at o'l) ;8A a'd O; ;os$er 1ould *e a*le to declare a food &a'ufacturer -os$er. T$is 1ould preclude t$e use of t$e ,.-os$er. do&ai' *) co&pa'ies t$at &eet t$e ri(orous sta'dards of :e1is$ la1 si&pl) *ecause t$e) are 'ot ,personall* "isite% an% inspecte%. *) t$e Applica't. T$e restrictive use of ,.-os$er. 1ould i'terfere 1it$ t$e core activit) of t$e co&&u'it) of ; Os3 1$ic$ is providi'( (uida'ce to -os$er co'su&ers. B) proposi'( to operate t$e ,.-os$er. (TL% as a closed re(istr)3 t$e Applicatio' 1ould ru' cou'ter to t$e expectatio' of co'su&ers t$at t$e do&ai' 1ould *e a ce'tral repositor) for i'for&atio' a*out -os$er 'eeds. T$e (ra'ti'( of t$e Applicatio' 1ould ,+s+rp the comm+nal )or% 4'osher52 s+ch that it )ill become excl+si"el* associate% )ith 3:A an% O3 3osher in the min%s of foo% man+fact+rers an% cons+mers.. 8oreover3 ,the concept of a sin&le entit* %eterminin& )hat is 'osher is antithetical to the comm+nit* nat+re of 'osher certification.. >4. T$e "upple&e'tal Pleadi'( ar(ues t$at up$oldi'( t$e Applicatio' 1ould e'tail t$at ,cons+mers )ill come to rel* on .'osher as a tr+ste% in%icator of 'ashr+t an% )ill associate a ;bran% name<.'osher %omain as in%icati"e of a pro%+ct5s stat+s .. T$is 1ould cause co'fusio' as to t$e *asis for deter&i'i'( 1$at *ra'ds receive ,.-os$er. do&ai' 'a&es a'd 1$et$er a *ra'd 1it$out suc$ a do&ai' 'a&e is actuall) -os$er3 as 1ell as co&petitive $ar& *ecause a si'(le privatel)5o1'ed or(a'izatio' 1ould $ave aut$orit) to deter&i'e 1$o receives a ,.-os$er. do&ai' 'a&e. T$e Applica'tIs ar(u&e't t$at it 1ould 'ot *e t$e sole ce'tralized source for -os$er certificatio' is co'tradicted *) t$e Applicatio'Is state&e'ts t$at t$e (TL% ,aspires to become the premiere reliable so+rce of information on the internet abo+t e"er*thin& to %o )ith 3osher certification. a'd t$at t$e (TL% at issue ,)ill onl* be a"ailable to companies that ha"e been personall* "isite%2 inspecte% an% are 'no)n to be +sin& the %omain to promote 3osher 1ertification.. Re(ardless of t$e Applica'tIs stated i'te'tio's as to $o1 it 1ill act i' attri*uti'( ,.-os$er. do&ai' 'a&es3 t$e Applica'tIs ,monopol* stat+s. over suc$ do&ai' 'a&es 1ould allo1 it to e'(a(e i' ,excl+sionar* practices. to t$e detri&e't of t$e co&&u'it). T$e O*+ector poi'ts to t$e co'cer's raised *) 2 A!!Is Gover'&e'tal Advisor) o&&ittee /,5AC.0 re(ardi'( t$e applicatio' for ,.$alal.3 1$ic$ are eHuall) applica*le to ,.-os$er..E Fi'all)3 it ar(ues t$at t$e rece'tl) a&e'ded "pecificatio' 11 /,.pecification 11.0 of t$e draft Re(istr) A(ree&e't *et1ee' re(istr) operators a'd 2 A!! /t$e ,&A.0 1ould 'ot li&it t$e Applica'tIs a*ilit) to appl) its o1' su*+ective sta'dards to exclude t$e O*+ector a'd its clie'ts or to co'tradict t$e O*+ectorIs certificatio' sta'dards3 so lo'( as it did so ope'l) a'd eHuall). 2' t$e "upple&e'tal Pleadi'( t$e O*+ector pleads t$at t$e Applica't ca''ot ,escape the act+al lan&+a&e of its Application. a'd failed to respo'd to t$e ExpertIs i'Huir) i'to 1$o 1ill ,personall*. visit t$e re(istra'ts of t$e do&ai's. Allo1i'( t$e la'(ua(e

>1.

#ee 2 A!! Gover'&e'tal Advisor) o&&ittee3 =eijin& >A1 1omm+ni.+? issued o' April 113 241# /O*+ectorIs A''ex 8 to t$e "upple&e'tal Pleadi'(0.

16

of t$e Applicatio' to *e suppla'ted *) ar(u&e'ts i' a' adversarial proceedi'( 1ould re'der &oot t$e 2 A!! o*+ectio' process. T$e Applicatio'Is ills are 'ot cured *) "pecificatio' 113 Article 2 of 1$ic$ does 'ot per&it t$e i'corporatio' i'to t$e RA of cou'selIs state&e'ts i' t$ese proceedi'(s3 i' particular t$e o'e a*out 1$o 1ill visit prospective re(istra'ts. Furt$er&ore3 t$e Applica't does 'ot address $o1 t$e ,inspection. a'd ,'no)n to be +sin&. criteria &a) *e satisfied *) t$ird parties. 2t 1ill ,maintain a+thorit* to %etermine all stan%ar%s for 4"isitation2 inspection an% certification5. a'd 1ill ,maintain complete %iscretion. as to t$e sta'dards it 1ill appl). T$e Applica'tIs clarificatio' co'tradicts its expressed &issio' to use ,.-os$er. to pro&ote its certificatio' a'd clie'ts. 2' a') eve't3 "pecificatio' 11 could 'ot curtail t$e Applica'tIs a*ilit) to operate ,.-os$er. i' a &a''er t$at 1ill cause detri&e't. !ota*l)3 Article #/c0 a'd /d0 of "pecificatio' 11 i&pose 'o &ea'i'(ful restrictio's o' $o1 t$e Applica't ca' operate ,.-os$er.3 a'd i' particular 1ould 'ot preve't it fro& su*+ectivel) deter&i'i'( re(istra't eli(i*ilit) criteria a'd3 ulti&atel)3 u'ilaterall) co'trolli'( access to t$e ,.-os$er. re(istr). (b) >2. The position of the Applicant

T$e Applica't co'tests t$at t$e Applicatio' ca' e'tail a') co'su&er co'fusio' *ecause t$ere is 'o evide'ce t$at it 1ill c$a'(e co'su&er u'dersta'di'( of t$e dece'tralized 'ature of certificatio' or preve't i'dividual ; Os fro& carr)i'( out t$eir &issio'. T$e ,.-os$er. (T%L 1ill actuall) supple&e't t$e existi'( sources of -os$er i'for&atio'3 a'd serve as a relia*le source 1it$ additio'al aut$orit) for t$e *e'efit of co'su&ers3 &a'ufacturers a'd diverse ot$er parties. 2t is 'ot &ea't to provide certificatio' services. Eve' if it 1ere used i' t$at 1a)3 it 1ould 'ot preve't ot$er certifiers fro& existi'( a'd flouris$i'(. T$ere is also 'o i'dicatio' t$at t$e Applica't 1ill 'ot act i' accorda'ce 1it$ t$e i'terests of ; Os3 co'su&ers a'd ot$er users. Furt$er&ore3 t$e (TL% 1ill 'ot *e closed a'd 1ill 'ot i'terfere 1it$ t$e core activities of ; Os. T$e eli(i*ilit) reHuire&e't is 'ot li&ited to verificatio' *) t$e Applica't3 1$ic$ $as a lo'( $istor) of i'clusive o'li'e practices a'd 1ill co'ti'ue to pro&ote -os$er certificatio' a'd e'coura(e de&a'd *) i'cludi'( t$ose 1$o certif)3 &a'ufacture a'd sell -os$er food3 to t$e *e'efit of all i'dustr) pla)ers. "uc$ restrictio's as t$e Applica't proposes to appl) i' t$e re(istratio' of ,.-os$er. do&ai' 'a&es are 'ecessar) to provide user co'fide'ce t$at t$e i'for&atio' provided o' t$e do&ai's is a*out le(iti&ate a'd verified products a'd esta*lis$&e'ts. T$ere is also 'o *asis for t$e assertio' t$at t$e O*+ector 1ould *e precluded fro& a ,.-os$er. do&ai' re(istratio'3 si'ce it 1ould ,ob"io+sl*. *e allo1ed to re(ister suc$ a do&ai'. 2' a') eve't3 t$e O*+ector does 'ot explai' $o1 suc$ preclusio' 1ould i'terfere 1it$ t$e O*+ectorIs activit). T$e alle(atio' is furt$er&ore irreleva't3 (ive' t$at ,alle&ations of %etriment. *ased solel) o' t$e applica't *ei'( dele(ated t$e stri'( i'stead of t$e o*+ector are *arred *) t$e AGB /"ectio' #.D.7 at #5270. Fi'all)3 t$e clai& t$at t$e Applicatio' 1ould lead to usurpatio' of t$e ,.-os$er. (TL% is u'supported3 particularl) i' t$e li($t of t$e state&e't of &e&*ers of 2 A!!Is !o'co&&ercial "ta-e$oldersI Group positio' t$at a TL% ca''ot i&part o1'ers$ip to a re(istr) operator over t$e (e'eric 1ord represe'ted *) t$e stri'(. T$e O*+ector $as ,+lterior moti"es.3 i' t$at3 as explicitl) declared *) it3 its i'terest is t$at t$ere s$ould *e 'o ,.-os$er. (TL% at all3 as

1>

de&o'strated *) its refusal to accept t$e Applica'tIs (ood fait$ proposals to address its co'cer's. >#. T$e Respo'se to t$e "upple&e'tal Pleadi'( co'tests t$e clai& t$at co'su&ers 1ill rel) exclusivel) o' t$e ,.-os$er. stri'( for -os$er status3 t$ere*) i'curri'( i' co'fusio'. 2t reiterates t$at t$e Applica'tIs ori(i'al i'te'tio' 1as to su*lice'se do&ai' 'a&es to certified seco'd level re(istra'ts a'd to develop close affiliatio's 1it$ ot$er ; Os a'd t$at it 'ever i'te'ded exclusive co'trol of t$e TL%. To alleviate a') co'cer'3 t$e Applica't also declared its readi'ess to execute a pu*lic i'terest co&&it&e't at 'o cost3 t$ere*) furt$er *i'di'( it i' a &a''er e'forcea*le *) 2 A!! a'd t$ird parties. Additio'all)3 t$e Applica't offered t$e O*+ector a' eHual part'ers$ip i' operati'( t$e TL%3 su*+ect to a s$ari'( of costs. 2t 'otes t$at its RA is co'tractuall) *i'di'(3 suc$ t$at a') u'fairl) exclusive operatio' *) t$e Applica't 1ould e'tail a *reac$ t$ereof. A') clai&s *) alle(edl) $ar&ed parties 1ould *e su*+ect to t$e Pu*lic 2'terest o&&it&e't %ispute Resolutio' Polic) /,PIC%&P.0 provided for at Article 2 of "pecificatio' 11. T$e Applica'tIs failure to file a co&&u'it)5*ased applicatio' u'der "ectio' 1.2.#. of t$e AGB is 'ot evide'ce t$at it 1ill operate t$e ,.-os$er. do&ai' to t$e detri&e't of t$e co&&u'it). T$e Applicatio' is i' 'o 1a) closed a'd does 'ot allo1 for exclusive co'trol of t$e do&ai'3 particularl) *ecause t$e Applica't 1ill *e su*+ect to "pecificatio' 11 reHuiri'( re(istr) operators to a*ide *) fair a'd tra'spare't re(istratio' a'd 'o'5 discri&i'ator) policies. T$e Applica't co'cludes t$at it 1ould $ave 'o c$oice as to 1$et$er to accept "pecificatio' 11. 2' repl) to t$e ExpertIs reHuest for clarificatio's t$e Applica't co'fir&ed t$at t$e verificatio' of t$e eli(i*ilit) reHuire&e'ts for re(istratio' of t$e do&ai's 1ill 'ot *e li&ited to t$e Applica't3 a'd t$at ,,a- prospecti"e re&istrant5s o)n 'osher certification or&ani(ation )ill be responsible for personall* "isitin& companies see'in& to re&ister a %omain name.. 2t also clarified t$e state&e't i' t$e Applicatio' a*out t$e i'te'ded li&its to t$e re(istratio' of do&ai's. 2t explai'ed t$at t$e refere'ce to ,affiliates. 1as 'ot i'te'ded i' t$e strict le(al se'se of ,entities +n%er common control. a'd t$at i' a') eve't its i'itial i'te'tio's 1ere superseded *) t$e rece't (uida'ce fro& t$e 2 A!! Board reHuiri'( co&plia'ce 1it$ "pecificatio' 113 ,)hich entirel* ob"iates Objector5s concerns.. 2t added t$at ,there is no .+estion that ,the Applicant- )o+l% be s+bject to the obli&ations ,9- +n%er #pecification 11.. (c) >D. Determination of the Expert

>7.

"ectio' #.D.7 of t$e AGB lists t$e follo1i'( factors t$at ca' *e ta-e' i'to accou't to assess 1$et$er a' applicatio' is li-el) to create &aterial detri&e't to t$e ri($ts a'd le(iti&ate i'terests of a si('ifica't proportio' of t$e co&&u'it)@ /i0 t$e 'ature a'd exte't of t$e da&a(e to t$e co&&u'it)Is reputatio'B /ii0 evide'ce t$at t$e applica't does 'ot act3 or i'te'd to act3 i' accorda'ce 1it$ t$e i'terests of t$e co&&u'it)B /iii0 i'terfere'ce 1it$ core activities of t$e co&&u'it)B /i"0 depe'de'ce of t$e co&&u'it) represe'ted *) t$e o*+ector o' t$e %!" for its core activitiesB /"0 'ature a'd exte't of t$e co'crete or eco'o&ic da&a(e to t$e co&&u'it) a'd /"i0 level of certai't) of alle(ed detri&e'tal outco&es.

1A

>6.

T$e AGB specifies i' "ectio' #.D.7 t$at ,,a-n alle&ation of %etriment that consists onl* of the applicant bein& %ele&ate% the strin& instea% of the objector )ill not be s+fficient for a filin& of material %etriment.. T$e O*+ector $as 'ot explai'ed $o1 t$e operatio' of t$e ,.-os$er. do&ai' *) t$e Applica't 1ould da&a(e t$e co&&u'it)5orie'ted 'ature of -os$er certificatio'. T$ere is 'o evide'ce t$at o'l) t$e Applica't 1ould *e a*le to declare a food &a'ufacturer -os$er3 t$ere*) excludi'( ot$er ; Os fro& t$is activit). Li-e1ise3 t$ere is 'o persuasive evide'ce t$at t$e operatio' of t$e TL% *) t$e Applica't 1ould lead to si('ifica't co'fusio' i' co'su&ers or ot$ers 1it$ a sta-e i' -os$er. EHuall) u'supported is t$e ar(u&e't t$at t$e 1ord -os$er 1ill *eco&e ,excl+si"el* associate%. 1it$ t$e Applica't3 as is t$e o'e t$at t$ere 1ould *e a ,sin&le entit*. 1it$ ,+nilateral a+thorit*. to deter&i'e 1$at is -os$er. T$ere is also 'o i'dicatio' t$at ,.-os$er. 1ill *e used to provide certificatio' services. =$ile t$e state&e't i' t$e Applicatio' t$at t$e Applica't ,inten%s to promote O3 3osher certification an% its clients in partic+lar. &i($t (ive t$e i&pressio' t$at t$e Applica't i'te'ds to operate t$e do&ai' i' a self5servi'( &a''er a'd as a closed (TL%3 t$e li-eli$ood of t$at $appe'i'( is 'ot esta*lis$ed. A' i'te'tio' to use t$e TL% i' a' i&proper &a''er is 'ot eve' prove' *) t$e state&e'ts i' t$e Applicatio' t$at ,.-os$er. 1ill o'l) *e availa*le to co&pa'ies t$at $ave *ee' ,personall* "isite%2 inspecte% an% are 'no)n to be +sin& the %omain to promote 'osher certification. a'd t$at t$e TL% ,aspires to become the premiere reliable so+rce on the internet abo+t e"er*thin& to %o )ith 3osher certification.. "pecificall)3 t$e Applicatio' does 'ot i'dicate t$at o'l) t$e Applica't 1ill verif) t$e eli(i*ilit) to use t$e ,.-os$er. do&ai'. T$e Expert disa(rees t$at t$e Applica't $as failed to respo'd to $is reHuest for clarificatio' as to 1$o 1ill perso'all) visit prospective re(istra'ts to certif) t$eir co&plia'ce 1it$ t$e appropriate sta'dards. 2'deed3 i' respo'se to t$e ExpertIs reHuest3 t$e Applica't explicitl) stated t$at respo'si*ilit) for t$e verificatio' 1ill lie 1it$ t$e ,prospecti"e re&istrant5s o)n 'osher certification or&ani(ation.. T$is see&s evide'ce e'ou($ of t$e lac- of (rou'd of t$e O*+ectorIs clai& t$at o'l) t$e Applica't 1ill verif) eli(i*ilit) a'd 1ill *e a*le to deter&i'e ar*itraril) 1$at re(istra'ts 1ill $ave access to ,.-os$er. do&ai's. O' t$e ot$er $a'd3 t$e fact t$at re(istratio' 1ill *e su*+ect to so&e for& of t$ird part) verificatio' of t$e co'for&it) to o*+ective sta'dards provides precisel) reassura'ce t$at t$e ,.-os$er. (TL% 1ill o'l) *e availa*le to re(istra'ts 1$o use t$e do&ai' for le(iti&ate uses3 i' li'e 1it$ co'cer's voiced *) t$e O*+ector. T$e O*+ectorIs refere'ce to a purported oppositio' of t$e GA to t$e re(istratio' of t$e ,.$alal. (TL% is i'correct3 as t$e oppositio' 1as *) so&e &e&*ers of t$e GA o'l). O' t$e ot$er $a'd3 t$e Applica'tIs i'te'tio' to ta-e t$e *roader i'terests of t$e co&&u'it) i'to co'sideratio' is *or'e out *) its offers to cooperate 1it$ t$e O*+ector i' t$e operatio' of t$e do&ai' a'd to (ive t$e& a' eHual part'ers$ip. =$at is &ore si('ifica't3 a'd ulti&atel) dispositive3 $o1ever3 is t$at t$e 2 A!! &ec$a'is& for operati'( (TL%s provides si('ifica't safe(uards a(ai'st a') t)pe of

>>.

>A.

>E.

A4.

A1.

A2.

1E

a*use. As correctl) re&ar-ed *) t$e Applica't3 t$e RA t$at it 1ould *e reHuired to execute as a co'ditio' for re(istratio' of t$e ,.-os$er. do&ai' 1ould o*viousl) *e *i'di'( o' it a'd 1ould o*li(e it to co&pl) 1it$ all t$e co&&it&e'ts3 state&e'ts of i'te't a'd *usi'ess pla's stated i' t$e Applicatio'. A#. T$e Applica't 1ould furt$er&ore *e su*+ect to t$e o*li(atio' set out i' Article #/c0 of "pecificatio' 11 to operate ,.-os$er. i' ,a transparent manner consistent )ith &eneral principles of openness an% non@%iscrimination b* establishin&2 p+blishin& an% a%herin& to clear re&istration policies.. T$e Expert ca''ot accept t$e ar(u&e't t$at t$e ope''ess a'd 'o'5discri&i'atio' o*li(atio's laid do1' i' t$at provisio' 1ould 'ot preve't t$e Applica't fro& resorti'( to restrictive criteria3 if it applied t$e& ope'l) a'd eve'5$a'dedl). T$at ar(u&e't presupposes a' i'terpretatio' of Article #/c0 t$at 1ould re'der it co&pletel) &ea'i'(less a'd is t$erefore u'te'a*le. Article #/c0 is a fu'da&e'tal provisio' i' t$e overall s)ste&3 a'd it &ust *e assu&ed t$at it 1ill *e i'terpreted co'structivel) a'd 'ot i' a for&alistic &a''er. T$e e'forcea*ilit) of t$e co&&it&e'ts i' Huestio' i' t$e eve't of alle(ed violatio' *) t$e Applica't 1ould *e assured *) t$e P2 %RP provided for *) Article 2 of "pecificatio' 11. T$is 1ill *e *i'di'( o' t$e Applica't *ecause3 co'trar) to t$e O*+ectorIs co'te'tio'3 t$e Applica't 1ill 'ot $ave t$e optio' of 'ot su*scri*i'( to "pecificatio' 11. T$ere is 'o evide'ce t$at t$e O*+ector3 or a') t$ird part) for t$at &atter3 1ould *e u'a*le to rel) 1it$ co'fide'ce o' t$e P2 %RP3 s$ould it tur' out t$at t$e Applica't 1ill operate ,.-os$er. i&properl). Accordi'(l)3 t$ere is 'o *asis for t$e O*+ectorIs ar(u&e't t$at t$e Applica't 1ould *e i' a positio' to appl) ,s+bjecti"e stan%ar%s to excl+%e the Objector an% its clients or to contra%ict the Objector5s certification stan%ar%s2 so lon& as it %i% so openl* an% e.+all*.. T$e 1$ole purpose of t$e RA a'd of t$e pu*lic i'terest co&&it&e'ts a'd of t$e P2 %RP is precisel) to avoid si&ilar outco&es. T$e Expert is u'a*le to follo1 t$e O*+ectorIs ar(u&e't t$at t$e Applica't ,cannot escape. t$e la'(ua(e of its Applicatio' a'd t$at allo1i'( t$e ar(u&e'ts put for1ard i' t$ese proceedi'(s to suppla't t$e la'(ua(e of t$e Applicatio' 1ould re'der t$e 2 A!! o*+ectio' process &oot. 2' t$e opi'io' of t$e Expert3 1$et$er a' applicatio' for a (TL% &a) (ive rise to so&e for& of detri&e't &ust *e assessed *) refere'ce3 'ot to t$e &o&e't of su*&issio' of t$e applicatio'3 *ut *) refere'ce to t$e ti&e 1$e' t$e (TL% 1ill *e active3 a'd ta-i'( i'to co'sideratio' a') i'terve'i'( circu&sta'ces. 2t is o'l) at t$at ti&e t$at a') detri&e'tal effect of t$e applicatio' 1ill *eco&e co'crete a'd releva't. 2' t$e prese't i'sta'ce3 su*seHue't to t$e fili'( of t$e Applicatio' 2 A!! i'troduced a &ec$a'is& to e'sure t$e respect a'd e'force&e't of pu*lic i'terest co&&it&e'ts /"pecificatio' 110. 2' t$e e)es of t$e Expert t$is &ec$a'is& is capa*le of providi'( adeHuate safe(uards a(ai'st a') i&proper *e$aviors *) t$e Applica't i' t$e use of t$e ,.-os$er. (TL% to t$e detri&e't of ot$er &e&*ers of t$e ; O co&&u'it). 8oreover3 i' t$e course of t$ese proceedi'(s t$e Applica't (ave assura'ces as to t$e accessi*ilit) of t$e re(istr) to ot$er &e&*ers of t$e ; O co&&u'it). T$e Expert

A7.

AD.

A6.

A>.

24

re+ects t$e O*+ectorIs ar(u&e't t$at suc$ assura'ces ca''ot *e relied upo'3 *ecause t$e) alle(edl) co'tradict t$e state&e'ts of t$e Applicatio' a'd 1ould 'ot *e i'corporated i' t$e Applica'tIs pu*lic i'terest co&&it&e'ts. T$e assura'ces (ive' o' *e$alf of t$e Applica't i' t$ese proceedi'(s appear co'vi'ci'( a'd &ade i' (ood fait$. 8ore i&porta'tl)3 t$e) $ave *ee' (ive' i' t$e co'text of adversarial proceedi'(s3 t$e outco&e of 1$ic$ 1ill *e pu*lic314 i' respo'se to specific co'cer's of t$e O*+ector a'd 1it$ a vie1 to ac$ievi'( t$e re+ectio' of t$e O*+ectio'. T$e (e'eral pri'ciples of (ood fait$ a'd of t$e pro$i*itio' of i'co'siste't *e$avior3 1$ic$ are clearl) applica*le to t$e relatio's$ips at issue3 1ould preve't t$e Applica't fro& re'e(i'( o' t$e assura'ces (ive' i' t$ese proceedi'(s. 2' t$e eve't t$at a' access dispute 1ere su*&itted to t$e P2 %RP i' relatio' to t$e use of t$e ,.-os$er. (TL%3 suc$ assura'ces 1ould certai'l) $ave to *e ta-e' i'to co'sideratio' to i'terpret a'd supple&e't t$e co&&it&e'ts. AA. Also co'sideri'( its latest assura'ces3 t$ere is t$erefore 'o evide'ce t$at t$e Applica't i'te'ds to operate ,.-os$er. as a ,closed. re(istr) a'd t$at t$ere 1ould 'ot *e sufficie't safe(uards 1ere it eve'tuall) to atte&pt to do so. Li-e t$e Expert i' ase !o. EMPL7E#L2 A!!L114 /J DA03 also i' t$is case t$e Expert ca''ot fi'd 1it$ certai't) t$at t$e Applica't 1ill i' future u'faili'(l) operate ,.-os$er. i' all respects i' co'for&it) 1it$ its co&&it&e'ts. <et3 li-e i' t$at case3 ,neither has the Objector offere% con"incin& reasons to belie"e that the Applicant )ill not %o so2 tho+&h that is its b+r%en.. Accordi'(l)3 $avi'( re(ard to t$e assura'ces (ive' *) t$e Applica't a'd to t$e curre't safe(uards3 i' t$e opi'io' of t$e Expert t$ere is toda) 'o serious (rou'd for t$e accusatio' t$at t$e Applicatio' is desi('ed to co'fer ,monopol* stat+s. o' t$e Applica't over ,.-os$er. do&ai' 'a&es a'd to per&it t$e Applica't to e'(a(e i' ,excl+sionar* practices.3 or i' a') eve't t$at it could lead to suc$ a result. !or does it see& li-el) t$at up$oldi'( t$e Applicatio' 1ould lead to a ,+s+rpation. of -os$er *) t$e Applica't or3 &ore si&pl)3 t$at t$e O*+ector 1ill 'ot *e per&itted to re(ister a do&ai' u'der ,.-os$er.. Fi'all)3 'o releva'ce ca' *e attri*uted i' t$is co'text to t$e si&ple i'terest of t$e O*+ector ,that there sho+l% not be a .'osher &T0D at all. /Applica'tIs A''ex AE0. Furt$er&ore3 t$e O*+ector $as provided 'o i'dicatio' as to a') ot$er factor capa*le of evide'ci'( a li-el) &aterial detri&e't accordi'( to t$e AGB. 2t $as 'ot s$o1' t$at t$e ; O co&&u'it) is depe'de't o' t$e use of t$e ,.-os$er. (T%L for its core activities. To co'clude3 t$e Expert fi'ds t$at t$e O*+ector $as 'ot co'vi'ci'(l) prove' its clai& t$at t$e Applicatio' 1ill i&pact 'e(ativel) o' itself3 t$e co&&u'it) of ; Os or t$e *roader co&&u'it) of perso's or e'tities 1it$ a sta-e i' -os$er. "pecificall)3 it $as 'ot de&o'strated t$at t$e Applicatio' could da&a(e t$e eco'o&ic or ot$er i'terests of t$e ; O co&&u'it) or its reputatio' or could i'terfere 1it$ t$at

AE.

E4.

E1.

E2.

14

T$e prese't Expert %eter&i'atio' 1ill *e pu*lis$ed i' accorda'ce 1it$ Article 21/(0 of t$e Procedure.

21

co&&u'it)Is core activities3 or t$at t$e Applica't does 'ot i'te'd to act i' accorda'ce 1it$ t$e i'terests of t$e co&&u'it). A*se't suc$ evide'ce3 t$ere ca' *e 'o fi'di'( of &aterial detri&e't to t$e co&&u'it) or to a su*sta'tial portio' of it3 as reHuired *) t$e O*+ectio' Procedures. I= E#. E7. C(NC$).I(N "ectio' #.D.7 of t$e O*+ectio' Procedures provides t$at for a co&&u'it) o*+ectio' to prevail all four tests laid out i' t$at "ectio' &ust *e &et. 2' t$e prese't case t$e Expert $as fou'd t$at t$e first /clear deli'eatio' of t$e co&&u'it)@ "ectio' 222.A a*ove0 a'd t$ird /stro'( associatio' *et1ee' t$e stri'( a'd t$e co&&u'it)@ "ectio' 222. a*ove0 tests are &et. 2' relatio' to t$e seco'd test /su*sta'tial oppositio' 1it$i' t$e co&&u'it)@ "ectio' 222.B a*ove0 t$e Expert $as 'ot dee&ed it 'ecessar) to co&e to a defi'itive fi'di'( i' li($t of its co'clusio' o' t$e fourt$ test. 2' relatio' to t$e fourt$ test /&aterial detri&e't@ "ectio' 222.% a*ove0 t$e Expert $as fou'd t$at t$e O*+ector $as failed to provide co'vi'ci'( evide'ce a'd to satisf) its *urde' of proof. "i'ce at least o'e of t$e four tests co'te&plated *) "ectio' #.D.7 of t$e O*+ectio' Procedures /detri&e't0 is 'ot &et3 t$e Expert &ust co'clude t$at t$e O*+ectio' ca''ot *e sustai'ed. %ECI.I(N For t$e reaso's set out a*ove3 i' accorda'ce 1it$ Art. 21/d0 of t$e Procedure3 t$e ExpertIs fi'al a'd *i'di'( decisio' is as follo1s@ /i0 /ii0 T$e O*+ectio' is re+ected a'd t$e Applica't accordi'(l) prevailsB T$e Applica't s$all *e refu'ded *) t$e e'tre t$e costs adva'ced to t$e 2'ter'atio'al $a&*er of o&&erce.

ED.

= E6.

Place of t$e Expertise@ Paris :a'uar) 173 2417 T$e Expert

NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN Professor Luca G. Radicati di Brozolo

22