Domain Name Violation: Cyber Squatters & Typo Squatters

Domain names have recently been at the forefront of the legal problems that sweep the Internet. Before a change in legislation was enforced, Internet rogues (often referred to as "cyber squatters") would tactically register domain names that would be trademarks to existing or forthcoming businesses.

Furthermore, they would have no intention to add content to the domain - it was simply for the ownership. The cyber squatter would then literally hold the domain name for ransom to those companies that wanted the domains - large amounts of money have been offered in some cases.

Thankfully, legislation has changed with respect to trademark laws that prohibit the use of domain names being "wrongfully" purchased. Consequently, companies that have appealed against the use/ownership of a domain name (held by another party) have won their case.

However, some domain name registrations have been from genuine parties that can justify their use and have therefore won the case on an "I was here first" basis.

Typo squatters also plague the Internet by purchasing possible misspellings of company domain names.


Buying and Using a Domain Name

When purchasing a domain name, it is important to check that the name does not violate any trademarks (use a search engine to see what comes up) and that you can justify your reason for using the name.

If you want to purchase a domain name that has already been registered but no content is displayed at the domain, you should find out the details and intentions of the owner. It may be that they are genuine and have yet to publish any content (work in progress). However, it may be a case of cyber squatting and you should therefore seek legal advice.

In some cases, the owner may have purchased the domain name but their plans for building a web site have 'fallen through' - consequently the owner may be willing to sell you the domain for the original price. However, if this scenario turns into a ransom case - seek legal advice.

Before buying a domain name from a third party, you should confirm that the seller has rights to the name which has not violated any trademarks - seek advice from your intellectual property council.

If your business has trademarks and the domain name(s) has already been registered and in use, you can use legal action given that the current owner does not have any right to the domain name. It should be noted that smaller businesses where trademarks may be less established (compared to large companies) may find it difficult to win a case.

Given that you find an available domain name, you should register using the intended owner's details. Only the owner has authority to change details in the future such as billing information, hosting changes, etc.

If you fail to renew your domain name registration after the agreed time i.e. 6 months, 1 year, 2 years, etc, your registration will be cancelled and the domain name will be put up for re-sale.

A tip to avoid cyber and typo squatting is to purchase all three of the top level domains - .com, .co.uk and .net. This will also avoid confusion to customers. Furthermore you should purchase all likely misspellings of your domain name before typo squatters take advantage.

Selling Your Domain Name

If you wish to sell your domain name, it is important that you contact the registrar to inform them of the transfer. A domain name cannot be completely transferred without the registrar overseeing the final stages.

Relevant Articles

Choosing a Name for the Virtual World (Internet Business):
Choosing a Name for Your Business (non-limited company):
Choosing a Name for Your Company (limited business):
An Overview of Trademarks: