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Well you go directly to element 3 and then decide element 2 based on element 3.
If you are Berryhill then you satisfy element 2. If a panelist says otherwise then he is not all that fair.
That is why for a UDRP complaint to be satisfied, it needs all 3 elements satisfied. If elements 1 and are satisfied and element 2 is not, then that is a clear court case. Not a UDRP. If panelists believe that they are above any law and have a different opinion on what UDRP should be, then again they are not as fair as they think.
If you are Berryhill then you satisfy element 2. If a panelist says otherwise then he is not all that fair.
That is why for a UDRP complaint to be satisfied, it needs all 3 elements satisfied. If elements 1 and are satisfied and element 2 is not, then that is a clear court case. Not a UDRP. If panelists believe that they are above any law and have a different opinion on what UDRP should be, then again they are not as fair as they think.
I'm talking about a fair panelist too. The overarching issue is "legitimate rights". Being "commonly known by" is one defense.
But let's say that I register Berryhill.tld, and use the domain name for nothing relating to me, but to advertise my friend's taco restaurant - Jim's Awful Infringing Tacos. Jim competes directly with http://www.berryhillbajagrill.com/
I could see a "fair minded" panelist taking the position that I am not commonly known as "Berryhill", but I am commonly known as "John Berryhill", "John", and a number of other things not fit for publication; and then further deciding that the infringing use is not "legitimate".
This may come as a shock, but even fairminded people can disagree on the consequences of the same facts. Here the "unfair" panelist is reaching for a result which he believes is "fair" in a broader sense, and is narrowly interpreting the rule.