The Unlawful Practice of Cybersquatting

Understanding Cybersquatting

To illustrate, imagine someone buying the domain name "mcdonalds.ws" with the intention of selling it back to McDonald's. Alternatively, they might set up a website criticizing McDonald's food or service. Both scenarios would be considered cybersquatting.

In 1999, the Anti-Cybersquatting Consumer Protection Act was enacted in the United States, making cybersquatting illegal. This law was necessitated by the increasing number of large corporations, including Panasonic, Fry's Electronics, Hertz, and Avon, being compelled to pay hefty sums to reclaim their domain names from third parties.

Identifying Cybersquatting

To determine if a company is a victim of cybersquatting, type in a trademarked name preceded by "www" and followed by ".com", ".net" or ".org". If the website appears to be related to the domain name, it's likely not a case of cybersquatting (though it could be a simple trademark violation). However, if you encounter any of the following, it could indicate cybersquatting:

• Server not found
• Site under construction
• Page with no relation to the domain name

These signs don't always indicate cybersquatting, and there could be a reasonable explanation. It's advisable to contact the domain name owner before initiating any legal action.

Proving Cybersquatting

To prove cybersquatting, you need to establish the following:

• The domain name registrant intended to profit from your domain name in bad faith
• Your trademark was in effect and widely recognized when the domain name was registered
• The domain name is identical to your trademark
• You have officially registered the trademark

Determining Bad Faith Intent

There's likely no bad faith intent if:

• The domain name matches the person's name or nickname
• The owner is selling or plans to sell something on their website
• The website owner has a legitimate use for the domain name. For instance, a company named "McDonalds Plumbing" would have a valid reason for owning the "McDonalds" domain name.

Signs of Cybersquatting

Indications of cybersquatting include:

• The domain name owner has set up a website that harms your company in some way
• The domain name owner has never legitimately used the domain name and simply offered to sell it to you
• The person has bought many names and sold them repeatedly, indicating a pattern of cybersquatting
• The domain name is identical to a very famous trademark

Consequences of Cybersquatting

If found guilty of cybersquatting, the offender can be ordered to surrender the domain name. Furthermore, if the domain was purchased after 1999, they can be ordered to pay monetary damages. For more information on cybersquatting and its legal implications, visit the United States Patent and Trademark Office or World Intellectual Property Organization.