Cybersquatting of New Domain Names

Here’s some interesting news: The likelihood of cybersquatting remains high for .com's but is much less ICANN’s new domains. According to a recent study by a top-level domain (TLD) consulting firm called Minds+Machines, internet domains other than .com (such as .net, .biz and .info) aren’t currently pursued by cybersquatters. Furthermore, the study suggests that the new assortment of generic top-level domains (gTLD’s), recently created by ICANN will not attract cybersquatters either. These domains include .mobi, .cat, .name, .asia, .pro, .tel and .travel.

The study was conducted thusly: Minds+Machines examined domain name registration of more than 1,000 Fortune 100 brands. They reason that if a trademark name is available at a domain, neither the company nor cybersquatters are concerned with the open real estate. The danger of trademark infringement is assumed to be low, given the apparent lack of interest in the site. According to the study, 100 percent of the companies were registered in .com sites. The already-established gTLD’s outside of .com (.org, .net, .biz and .info) had between 65 and 87 percent name registration. The new categories mentioned above had less than 30 percent registration.

These numbers do show that cybersquatting is an issue in the .com category. However, they fail to prove anything about the future of internet domain value. Will these new domains continue to be ignored in the long term? It’s hard to say. Current internet patterns may not be indicative of the future. Fifteen years ago, could anyone have predicted the current power of social media?

Obtaining Your Domain Name Back From Cybersquatters Through UDRP

A common scenario for established or new companies occurs when its primary domain name has been seized by a cybersquattor. For example, imagine your company name and trademark is “Sizaroma.” You were able to register www.sizaroma.com but later www.sizaroma.net, www.sizaromas.com, and www.sizaaromas.com were registered by someone else, probably a guy in China who in bad faith, has no intention of ever using domains. Or worse, he later puts up a competing website in bad faith with similar goods and services feeding off the goodwill that you have worked so hard to create. That my friends is a cybersquatter. So what are your options? One of the best is a Uniform Domain Name Resolution Policy proceeding (“UDRP”). A UDRP is like a streamlined litigation done with an arbitration panel, usually with the National Arbitration Forum or WIPO. A complaint is filed, and the cybersquatter is allowed a chance to respond. You do not have to serve the defendant like in a typical lawsuit. Nor is there a trial or any discovery. Further, there is no jurisdictional issues, so if the defendant is in China, a claim can still be made against him.

The net result is a transfer of the domain name. No money damages or injunction from using the trademark can be issued in UDRP, rather it's strictly about getting your domain name back. So the beauty of UDRP is that it is straight to the point, and can be completed within a few months rather than a long dragged out litigation that could last for a year or longer.

There are however other means for domain name disputes, such as filing a federal lawsuit under the Anticybersquatting Consumer Protection Act ("ACPA"), or perhaps a traditional trademark infringement lawsuit. An IP attorney would have to evaluate each scenario to determine the most appropriate method.