Protecting Against Cybersquatting

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Cybersquatting is the registration, sale or use of a domain name by someone other than the business or trademark owner, with the intent of profiting from the goodwill built up by the business or trademark owner. It’s been a problem for at least 10 years and recently gained the attention of no less than the Department of Homeland Security which recently confiscated over 70 cybersquatting sites. Chances are, however, small or medium sized companies with cybersquatting problems, you won’t have much luck in getting the attention or protection from the Department of Homeland Security.

So how do you protect against this before things get to this point? Well, if you haven’t already done so, trademark your domain name for starters. This gives you two avenues for potential protection–through the Anti-Cybersquatting Consumer Protection Act (“ACPA”) and the Internet Uniform Domain Name Dispute Resolution Policy (“UDRP”). Both avenues for redress are available only to registered trademark owners. Federal trademark registration confers the benefit of presumptive ownership of the trademarked domain name, which then allows you to pursue the above avenues for redress of domain name hijacking and infringement cases. While suing through the ACPA in federal court is time consuming, it does allow for recovery of $100,000 per domain name, plus costs and fees. By comparison, ICANN’s Uniform Domain Name Dispute Resolution Policy provides a more efficient binding arbitration process which aims to resolve such disputes without trial or hearing. The down side to ICANN’s arbitration process is that it does not allow cybersquatting victims to recover damages, costs or fees. So if you’re looking for some monetary damages, the ACPA is the way to go. But again remember, to even get to the point of being able to sue under the ACPA you have to be deemed the trademark owner.

While you might think it’s a pain in the neck and a hassle to do a trademark registration, if you are ambititious about your company’s future prospects and want to protect against potential cybersquatters pilfering the goodwill of your company, trademarking is the first step. Remember cybersquatting also involves these squatters buying domain names confusingly similar to your domain name which for many is also their brand name. Obviously, for those businesses who rely or hope to rely substantially on internet marketing and sales, there is more motivation for domain protection.

So what shall it be? Will you wait until you have a cybersquatting problem? Or will you trademark your domain name now to at least gain the right to sue against cybersquatters should the need arise?

Judy Marsie-Hazen (Florida Bar) is a founding member of Marsie-Hazen & Associates, P.A. Judy has lived in at least four (4) of the five continents of the world and has gathered an international network of friends and colleagues. As a result, she is very comfortable interacting and dealing with clients from all over the world. Along with her Law firm, she offers business and corporate filings, as well as caters to many other business needs through her site. http://alphacorpfilings.com

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