Cybersquatting

From Free net encyclopedia

Cybersquatting is a term used to describe the practice of registering and claiming rights over Internet domain names that are, arguably, not for the taking. The cybersquatter then offers the domain to the person or company who owns a trademark contained within the name at an inflated price, an act which some deem to be extortion.

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.

Many cybersquatters also register many variants of a popular trademarked name, a practice known as typosquatting.

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Legal resolution

Domain name disputes are typically resolved using the Uniform Domain Name Resolution Policy (UDRP) process developed by the Internet Corporation for Assigned Names and Numbers (ICANN). Critics claim that the UDRP process favors large corporations and that their decisions often go beyond the rules and intent of the dispute resolution policy.

Court systems can also be used to sort out claims of cybersquatting, but jurisdiction is often a problem, as different courts have ruled that the proper location for a trial is that of the complainant, the defendant, or the location of the server through which the name is registered. People often choose the UDRP process because it is usually quicker and cheaper than going to court, but courts can and often do overrule UDRP decisions.

Some countries have specific laws against cybersquatting beyond the normal rules of trademark law. The United States, for example, has the U.S. Anticybersquatting Consumer Protection Act (ACPA) of 1999.

Under UDRP policy, successful complainants can have the names deleted (which often just means someone else will register it) or transferred to their ownership (which means paying regular renewal fees on all the names or risk them being registered by someone else). Under the ACPA the cybersquatter can be held liable for actual damages or statutory damages in the amount of a maximum of $100,000 for each name found to be in violation.

There have been several instances of companies, individuals or governments trying to get generic domain names away from their owners by making false claims of trademark violation. Sometimes they are successful. This practice is called "reverse domain hijacking" and is also punishable by a penalty of up to $100,000 for each violation.

The term cybersquatting is sometimes wrongly used to refer to the sale or purchase of generic domain names. Due to the shortage of descriptive and generic available domain names, covetous entities often try to exploit the term Cybersquatting to suit their desired ends.

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