Cybersquatting

Cybersquatting, according to the United States federal law known as the Anticybersquatting Consumer Protection Act, is registering, trafficking in, or using a domain name with bad faith intent to profit from the goodwill of a trademark belonging to someone else. The cybersquatter then offers to sell the domain to the person or company who owns a trademark contained within the name at an inflated price. The term is derived from "squatting," which is the act of occupying an abandoned or unoccupied space or building that the squatter does not own, rent or otherwise have permission to use. Cybersquatting however, is a bit different in that the domain names that are being "squatted" are (sometimes but not always) being paid for through the registration process by the Cybersquatters. Cybersquatters usually ask for prices far greater than that at which they purchased it. Some cybersquatters put up derogatory remarks about the person or company the domain is meant to represent in an effort to encourage the subject to buy the domain from them. Others post paid links via Google, Yahoo, Ask.com and other paid advertising networks to the actual site that the user likely wanted, thus monetizing their squatting. As with many controversial issues, some argue that the dividing line of cybersquatting is difficult to draw, or that the practice is consistent with a capitalistic and free market ethos. Cybersquatting is one of the most loosely used terms related to domain name intellectual property law and is often incorrectly used to refer to the sale or purchase of generic domain names such as example.com. Read the full background at Cybersquatting Wikipedia

Cybersquatting / Recently Commented

Expansion of Top-Level Domain Names: Why Current Brand Protection Procedures Will Be Impractical

As ICANN introduces new generic top level domains (gTLDs) and separates itself from US oversight, it has the opportunity to distance itself from the taint of cybersquatting, brand abuse, and criminal activity involving domains... To underscore the scope of the issue, consider this research on just 30 top Interbrand-ranked global brands. The most recent MarkMonitor Brandjacking Index found cybersquatting incidents increased over 40% in the last year for the brands that were studied; these leading brands suffered as many as 15,000 incidents per brand... more»

Continued Controversy Over Google Ads on Typosquatted Domains

Regular readers of this site would be familiar with the ongoing legal battles involving the practice of typosquatting; the registration of misspelled domain names of well know brands with the intention of making a profit. Taking advantage of the fact that millions of online users mistype addresses of websites they intend to visit, typosquatters register common misspelled versions of popular sites and make money by displaying ads. Google's AdSense for Domains (AFD) program, often used for displaying such ads, has been particularly targeted by trademark owners which according to McAfee's SiteAdvisor, serves ads on more than 80% of typosquatting sites recently uncovered. more»

How Can ICANN Improve Institutional Confidence?

This week ICANN held a public consultation in Washington, D.C., where ICANN's President's Strategy Committee (PSC) solicited remarks from a packed audience of intellectual property (IP) lawyers, domain name registrars and other Internet stakeholders on how the organization can improve institutional confidence. No surprise, ICANN's decision to add new generic top-level domains (gTLDs) to the Internet was on many participants' minds. more»

Recent Bank Merger Names Already Cybersquatted

Domain names related to recent bank mergers are already being hoarded and sold online reports BBC News. "Domain names for the merged Bank of America/Merrill Lynch as well as for Lloyds TSB/HBOS have been snapped up. As reports of Lehman Brothers' intent to sell itself first surfaced last Friday, cybersquatters had already spotted Barclay's, HSBC and Bank of America as potential buyers... Accordingly, barclayslehman.com, hsbclehman.com, hsbclehmanbrothers.com and bofalehman.com had been acquired." more»

Personal Names, Politics and Cybersquatting

Thinking about the www.kerryedwards.com auction reminds one of the uneasy relationship between personal names, politics and cybersquatting. When reporters learned that the domain name was taken by Kerry Edwards, the Indiana bail bondsman, at least some headlines were quick to brand Mr. Edwards' conduct as cybersquatting. The Chicago Sun-Times, for example, ran the headline "Kerry Edwards is the Name, Cybersquatting is the Game." Mr. Edwards, of course, had registered his own name as a domain name long before Kerry picked Edwards as a running mate. more»

Click Fraud, Botnets and Parked Domains - All Inclusive

It gets very ugly when someone owns both, the botnet, and the portfolio of parked domains actively participating in pay per click (PPC) advertising programs, where the junk content, or the typosquatted domain names are aiming to attract high value and expensive keywords in order for the scammer to earn higher on per click percentage. This is among the very latest tactics applied by those engaged in click fraud activites. more»

June Court Decision Detrimental to Domaining Practices

In a June court ruling, domainer Navigation Catalyst and registrar Basic Fusion lost a cybersquatting lawsuit to Verizon... This is an extremely interesting and potentially precedent-setting case regarding domaining and domain name tasting. The court condemns both practices, leading to a preliminary injunction against the domainer and its registrar based on the Anti-Cybersquatting Consumer Protection Act (ACPA). As far as I can recall, this is the first time that a domainer has lost an ACPA lawsuit in court, and it provides an important data point confirming that domaining can be cybersquatting (a previously unresolved issue)... more»

New CIRA Whois Policy Strikes Balance Between Privacy and Access

My weekly technology law column focuses this week on the new CIRA whois policy that is scheduled to take effect on June 10, 2008. The whois issue has attracted little public attention, yet it has been the subject of heated debate within the domain name community for many years. It revolves around the whois database, a publicly accessible, searchable list of domain name registrant information (as in "who is" the registrant of a particular domain name). more»

Network Solutions Responds to Front Running Accusations

Following a post on the DomainState forum today, a number news and blogs have criticized Network Solutions for front running domain names that customers try to register. (See for instance today's report on DomainNameNews). Jonathon Nevett, Vice President of Policy at Network Solutions, has offered the following in response to the news break... more»

WIPO Reports Record Number of Domain Disputes in 2007

World Intellectual Property Organization (WIPO) has received 2,156 complaints alleging "abusive registration of trademarks on the Internet" in 2007, up 18 percent from 2006 and 48 percent more than the filings lodged in 2005. Most complaints came from the pharmaceutical, banking, telecommunications, retail and entertainment sectors. more»

ICA Posts Position Paper and Analysis of Snowe "Anti-Phishing" Legislation

The Internet Commerce Association (ICA) has posted a position paper and analysis of S. 2661, introduced on 2/25/08 in the US Senate. While we are firmly opposed to phishing and other criminal activities that may utilize domain names we are very concerned about the provisions of the proposal that appear to provide trademark owners with a means to avoid both UDRP and ACPA actions and alternatively bring private claims against domain names with a lower burden of proof and the potential for far higher monetary damages, without even requiring an allegation that the DN was in any way being utilized in a phishing scheme... more»

UDRP: The Liabilities for the Corporations and/or their Lawyers

This post is based on the scenario that a trademark.tld domain name is registered with a UK ICANN accredited registrar, (they have an exclusive UK jurisdiction clause in their contracts), the trademark.tld criticism website located at that domain name is strictly non-commercial, the servers are located in the UK, and the registrant is a British citizen. In the above circumstances, the corporations and/or their lawyers are taking a big risk when they use the Domain Name Dispute Resolution Policies (UDRP) in order to silence criticism at trademark.tld. more»

If the Number '5' License Plate is Worth $6.8 Million, What is Your Domain Name Worth?

The number "5" license plate sold for $6.8 million dollars in Saudi Arabia and another 300 vanity plates sold for another $56 million at last week's auction. It is estimated that the number "1" will be auctioned next month for up to $20 million dollars. Domain names and license plates share some common characteristics. Both allow only one person to own a particular word or number. Of course, the exact same license plate 'word' or 'number' can be registered in every country and, in the USA, every state... more»

Domain Front Running by Registrars Continues to Draw Attention

In response to accusations lodged yesterday in a post on the DomainState forum, NSI has issued a statement which essentially admits that it engages in a form of domain front running. No one has challenged domain Front Running by registrars in the courts, likely because the practice is new and since the loss of a single domain would not typically generate a level of damages to support litigation. But litigation over this arguably fraudulent domain practice by registrars is both viable and likely inevitable... more»

12 Common Mistakes Made By Bad Faith Cybersquatters

Some cybersquatters register domains in bad faith as part of a business plan to monetize domains by leveraging famous trademarks and high-traffic web sites. Some cybersquatters just don't understand the law. In this this tongue-in-cheek post, we provide a real world case study of the most common mistakes made by cybersquatters when registering trademark protected domains in bad faith. more»

Industry Updates

All-Star Lineup Headlines DOMAINfest Global Agenda

DomainSponsor™, the domain monetization business of Oversee.net and organizing party of DOMAINfest Global, a premier conference for the domain industry, today announced the final DOMAINfest agenda, which features global experts who will cover all aspects of the domain industry. ›››

Domain Roundtable Conference 2007

The Domain Roundtable Conference 2007 (DRT) will held August 12-15 with an estimated 42 different topic sessions scheduled - the DRT 2007 is promising to be the most informative domain industry event ever held. ›››

DOMAINfest Amsterdam Features Renowned Internet Experts

DomainSponsor today announced its speaker line-up for DOMAINfest Amsterdam, a two-day regional seminar and networking event created specifically to respond to the needs of domainers operating in the European business environment. ›››