Now more than ever, domain name registrants seek to capitalize off of a domain name. Whether it is the domain name itself or the traffic associated with the domain name (possibly because of its similarity to the trademark of another), domain names have tremendous value. Therefore, domain names are constantly at risk of being abused.
Cybersquatting is the most common way domain names are abused. Cybersquatting requires a domain name registrant to register or use a domain name incorporating a trademark of another with a bad faith intent to profit from that mark. Cybersquatting comes in many forms. Whether it’s typosquatting, pornosquatting, domain tasting, domain kiting, domain lapsing, domain frontrunning, or domain warehousing, cybersquatters seek to capitalize off the valuable intellectual property rights of another.Domain names are also the subject of cyber-extortion. 15 U.S.C. § 1129(1)(A) states: “Any person who registers a domain name that consists of the name of another living person, or a name substantially and confusingly similar thereto, without that person’s consent, with the specific intent to profit from such name by selling the domain name for financial gain to that person or any third party, shall be liable in a civil action by such person.” Cyber-extortion is against the law, and yet another form of cyberpiracy for which the Lanham Act provides a cause of action and remedy.
Ultimately, correcting domain name abuses costs trademark owners, businesses, individuals, and other domain name registrants time, effort, and money. Regardless, the common abuses of domain names will likely continue. Being able to identify domain name abuse and knowing when you have been the subject of such abuse is the first step. Understanding what to do when you are a victim of cybersquatting or cyber-extortion will help reduce the time, effort, and money expended to correct the domain name abuse.
Source: Brian Hall writing for DomainNews.com - March 25th, 2008