What is Cybersquatting and Its Types

• Mar 10 2023
• by Ilona K.

The domain market is quite extensive. Last time, we talked about how and from whom you can buy a domain name. You can either go to an individual or a company. Unfortunately, there is a risk that you might make a bad purchase. This can happen if you come across cybersquatters who aren’t afraid to demand a huge markup, and sometimes deceive buyers.

What is cybersquatting?

There are some nuances that distinguish cybersquatters from companies or individuals involved in the sale of domains.

The first thing that makes cybersquatters stand out is a violation of intellectual property rights. Cybersquatters register domain names that are as similar as possible to well-known brands or use the names of popular people or businessmen.

The WIPO (World Intellectual Property Organisation) helps to combat cybersquatting. This body, along with ICANN, the Internet Corporation for Assigned Names and Numbers, introduced the UDRP (Uniform Domain Name Dispute Resolution Policy) procedure. This procedure favours the rights of trademark owners, who win most of the time.

Accusations of cybersquatting are sometimes motivated by the desire to seize attractive domain names from their rightful owners. This is called reverse domain hijacking. These attempts have sometimes been successful, but don’t despair, if you find yourself the target of an action like this, you can and should fight back against the complainant.

Types of cybersquatting

Cybersquatting is mostly related to trademark infringement. But can also include typosquatting. Cybersquatters register domains that are as close as possible to the addresses of well-known websites. This is done in the hope that the user will make a mistake when writing the domain name and end up on their site. Cybersquatters make money by showing ads to these random visitors.

With nominal cybersquatting, domains with the names of famous people, such as actors, singers, politicians, public figures, etc are registered. With this type of cybersquatting, it’s very difficult to prove that the domain is being used illegally or for fraudulent purposes, since thousands of people can have the same name. To combat this, many celebrities are trying to register their names as trademarks.

Brand cybersquatting comes down to registering domains that are as close or identical as possible to the names of brands, trademarks, various companies, and even films. Cybersquatters do this, of course, for profit. Companies aren’t always ready to spend time and money filing complaints, pursuing litigation or buying domain names for crazy prices.

Quite often, cybersquatters buy out abandoned domains whose registration hasn’t been renewed for some reason. After buying a domain, sometimes one which is rich in history, cybersquatters contact the former owners and try to sell the domain back to them. There is always a demand for good domain names.

Many trademark holders use a practice of defensive domain registration, registering all domain names that are similar to their own or closely related to it in meaning. This approach is very good as a preventive measure against cybersquatters.

If you own a trademark, you can choose a suitable domain under .it.com which is available through many ICANN Accredited Registrars. A full directory of registrars can be found at our website.

To understand how you can protect yourself from cybersquatting, be sure to read our next article, where we have compiled some efficient ways to do this.

FAQs

1. What is the meaning of cybersquatting?

Cybersquatting involves registering, using, or selling a domain name in bad faith when it is identical or confusingly similar to someone else’s trademark or brand. Common tactics include typosquatting (exploiting misspellings like googeI.com), namejacking (targeting personal names of celebrities or public figures), reverse cybersquatting (falsely accusing legitimate owners of appropriating sites), and identity theft (impersonating brands to deceive users).

2. Is squatting a domain legal?

No, cybersquatting is illegal. It violates laws like the US ACPA (Anticybersquatting Consumer Protection Act) and global policies such as UDRP (Uniform Domain-Name Dispute-Resolution Policy). Legitimate domain investing—purchasing generic names for resale—is permitted, but registering domains specifically to exploit popular brand names or extort owners constitutes illegal cybersquatting.

3. How do you prove you are the victim of cybersquatting?

Proving cybersquatting (under frameworks like UDRP) requires demonstrating three elements: that the domain is identical or misleadingly similar to your trademark; that the squatter has no legitimate rights or interests in the domain and that it was registered and is being used in bad faith. Evidence of this could be ransom demands, disruption of your business, or profiting from user confusion.

4. How to deal with domain squatters?

Key strategies include filing a UDRP complaint (the standard method to transfer domains efficiently); pursuing legal action under national laws like the ACPA (which may award damages); sending a cease-and-desist letter (cautiously, to avoid alerting the squatter); using a practice of defensive domain registration when you register all domain names that are similar to the main domain or closely related to it in meaning and registering a trademark for domain name.

This article is not intended to be legal advice. Please, do your own due diligence and consult an attorney for anything related to trademarks and cybersquatting.

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