Habitual cybersquatters, or those who are repeatedly named as respondents and ruled against for registering domain names that incorporate the trademarks of others, are becoming more and more familiar with the UDRP.  In fact, these habitual cybersquatters are learning what it takes to win a UDRP arbitration, trying to use the available defenses (whether flawed or not) in the UDRP Rules to their advantage, responding to Complaints they receive instead of simply letting the domain name transfer, and becoming more sophisticated.  Shouldn't you as a trademark owner or a domainer understand as much, if not more, than they do? 

The UDRP is a vehicle through which you can acquire domain names incorporating trademarks to which you have rights.  However, simply filing a Complaint is not the slam dunk it used to be.  In fact, habitual cybersquatters know that for a Complainant to win a UDRP, she must establish the following, pursuant to Paragraph 4(a) of the Rules:

1. The domain names are identical or confusingly similar to a trademark or service mark in which the Complainant has rights; and

2. The Respondent has no rights or legitimate interests in respect of the domain names; and

3. The domain names were registered and are being used in bad faith.

These cybersquatters are not afraid of the statistics showing an ever-increasing number of Complaints being filed each year.  They are hiring attorneys to handle a response, negotiate a settlement, or avoid further proceedings under the ACPA or otherwise. 

Ultimately, domain names are undoubtedly one of the fastest growing areas of intellectual property.  Domain names, because of their value, attract both good owners and bad.  As such, the UDRP remains a very attractive option for going after cybersquatters.  However, you must know that it is an available option, how the Rules are applied, and what it takes to win.  Cybersquatting is not going away anytime soon, so it will be those equipped with quality domain name portfolios, domain name protection plans, and knowledge of domain name transactions that will realize return on their investment.  More importantly, it will be those with knowledge of the UDRP who can save time, money, and effort all while defeating the habitual cybersquatters.