Cybersquatters buy or register domain names that are identical or confusingly similar to trademarks, business names, or personal names. They usually act in bad faith, resell the domain at a high price, divert web traffic for financial gain, or use the name for criminal purposes like phishing or spreading malware.
What are the types of cybersquatting?
Domain squatting
CrowdStrike defines domain squatting as “the abusive practice of registering and using an internet domain name that is identical or similar to trademarks, service marks, personal names or company names with the bad faith intent of hijacking traffic for financial profit, delivering malware payloads or stealing intellectual property.”
Furthermore, these “scams are on the rise with 5,516 new cases filed in 2022”, noting “a 10% increase from 2021.”
Typosquatting
Typosquatters buy misspelled copies of popular domains, such as "rnarriott.com" rather than "marriott.com," deceiving users into accessing the wrong domain and frequently exposing them to phishing or malware.
Malicious actors also “combine typosquatting domain within a phishing email to get higher response ratios.”
Gripe sites
Gripe websites criticize or condemn individuals or businesses. While some offer legitimate criticism, others simply exist to harm reputations, with a “’.gripe domain extension for website domains that are dedicated to complaining and posting negative comments.”
Learn more: Typosquatting: What it is and how to avoid becoming a target
Notable cybersquatting cases
In 2000, singer Madonna settled a battle over the domain "madonna.com." The domain was registered and used to redirect visitors to an adult entertainment website. The court determined that this use constituted trademark infringement, resulting in a favorable verdict for Madonna and transferring the domain to her.
Tom Cruise won a cybersquatting case in 2006, banning his name from being used for profit. The WIPO Arbitration and Mediation Center found that the respondent “registered a substantial number of celebrity name-based domain names, and over the past several years, it has lost a number of those as a consequence of proceedings under the Policy.” Moreover, there was “no evidence that respondent has altered its behavior as a result of complainant’s delay, or that respondent has suffered because of it.”
In 2007, tech company Dell sued multiple domain registrars for registering names identical to their trademarks. The WIPO Arbitration and Mediation Center concluded that “the disputed domain name was in all likelihood registered and used in bad faith.”
Legal action against cybersquatting
There are several legal alternatives available to anyone affected by cybersquatting. The Anti-Cybersquatting Consumer Protection Act (ACPA), enacted in 1999, allows trademark proprietors to prosecute persons who register domain names in bad faith.
The Lanham Act, also known as the Trademark Act of 1946, is a federal legislation that protects trademarks from cybersquatting and permits businesses to sue anyone who misuses their trademarks.
The Internet Corporation for Assigned Names and Numbers (ICANN) also assists in resolving domain name disputes and can order the domain's transfer or deletion if the case is established.
Preventing cybersquatting
Cybersquatting can harm a brand's reputation and result in financial losses. Taking preemptive actions protects their internet presence and prevents bad actors from ruining their brand's credibility.
Businesses can prevent cybersquatting by registering their domain name as a trademark, giving them legal standing to take action against misuse. Securing frequent misspellings or variations of their domain also keeps typosquatters from taking advantage of user errors.
Learn more: Identifying and avoiding domain name spoofing
FAQs
How do I know if my domain name is being cybersquatted?
A domain search tool can help business owners find domain names similar to their business or brand. They should also look for misspelled domain names or questionable websites that use their trademark. If a domain is being held for ransom or used maliciously, it can be an instance of cybersquatting.
What should I do if someone registers a domain name similar to mine?
Businesses can pursue legal action under the Anti-Cybersquatting Consumer Protection Act (ACPA) or the Lanham Act. They can also file a complaint with ICANN to help resolve the domain dispute.
How do businesses prevent cybersquatting on their domain?
Businesses should register their domain name as a trademark to protect common misspellings and variants. Regularly check for new domain registrations that could infringe on the trademark, and consider using cybersecurity tools to keep vigilant.
