What is Cybersquatting and What Should You Do? featured image

What is Cybersquatting and What Should You Do?

by John DiGiacomo

Partner

Internet Law

Cybersquatting is one of those digital threats that businesses and individuals often do not think about until they find themselves victims. You click on a link of a familiar brand name, and you’re suddenly led to the wrong website. Customers get confused, trust may be lost, and for a business, you may face outright money demands to take back your website. Understanding what cybersquatting is and the steps to take if you are targeted can help you protect your business before further damage is done to your brand.

What Is Cybersquatting?

Cybersquatting happens when someone registers a domain name in bad faith. In most cases, the domain name closely resembles an existing business or trademark. While sometimes this can happen because businesses share names, cybersquatting is rarely innocent. Most cybersquatters do this with the intention to sell the domain back to the rightful brand owner, divert traffic for profit, or exploit consumer trust.

For example, a cybersquatter may claim a domain like netflx.com or nikeofficialstore.com. They are usually designed to look legitimate at first glance. In the United States, cybersquatting is illegal under the Anticybersquatting Consumer Protection Act (ACPA).

Most Common Types of Cybersquatting

Cybersquatting can take many forms, including:

Typosquatting

This is one of the most common forms of cybersquatting. Here, a cybersquatter registers a misspelled version of a popular domain name, betting that users will mistype a specific URL.

Warehousing

Warehousing happens when a domain registrar reclaims an expired domain and resells it at a premium. While this practice is controversial, you may be surprised to learn that it is actually generally legal. It becomes problematic when it feels exploitative, especially for brand-related domains.

Domain Name Speculation

Domain name speculation is a practice where individuals buy domains they believe will become valuable in the future. While it is not legal by itself, it can land one in legal trouble if the domain is too closely related to a trademarked brand.

Gripe Site Cybersquatting

In some instances, individuals register domains purely to criticize or mock a brand, such as brandnamesucks.com. Such websites and domain owners often get shut down fast because of illegal trademark infringement.

What To Do if You are a Victim of Cybersquatting

If you are a target of cybersquatting, consider taking the following steps:

Contact the Domain Name Registrant

First, find out why the registrant owns your domain name. If they are legitimately using the domain name, you may consider other options like using a different suffix, changing the domain name slightly, or buying the domain name from them. However, if they seem like cybersquatters, you could take legal action against them.

Talk to an Experienced Trademark Attorney

An attorney who understands trademark law can evaluate whether your case qualifies as a bad faith registration and guide you through the most effective response.

Consider UDRP or ACPA Action

You may file a Uniform Domain Name Dispute Resolution Policy (UDRP) complaint through the Internet Corporation for Assigned Names and Numbers (ICANN) for domain transfer or cancellation. This route is generally faster and less expensive. Alternatively, you could pursue an ACPA lawsuit to recover monetary damages.

Contact the Trademark Attorneys at Revision Legal

For more information, contact the experienced Trademark Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.

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