There’s enough to worry about when you own a business. The last thing you need is to have someone “steal” your domain name or use a similar name to divert business from you. Your domain name is a business asset and the cyber door where your customers enter to view your products or services.

“Cybersquatting” is the purchase and use of a domain name in bad faith, usually done with the intention of reselling it back to the legal copyright holder to make a financial profit. Cybersquatting is a violation of trademark laws. It became illegal with the passage of a federal law in 1999 known as the Anti-Cybersquatting Consumer Protection Act (ACPA). The law became necessary because numerous large companies were forced to pay large sums to buy their domain names from third parties. These companies included such notables as Panasonic, Fry’s Electronics, Hertz, Hershey, and Avon.

The cybersquatter, or “Cyber Pirates” have no legal or legitimate interest in the business name but attempt to register a similar internet address name or likeness before the rightful owner can do so. It can also be a way for them to divert business or sell their own products to unsuspecting consumers. It is a form of public deception used for financial gain.

Cybersquatting cases can be filed through two methods. A business can file a complaint in federal court using the ACPA if another person registers or uses the company domain name or confusingly similar domain name in bad faith. The second method is to file a complaint using the Uniform Domain Name Dispute Resolution Policy (UDRP), a contract created by ICANN.

If a person deceives potential customers with something as simple as the business name and website, how can you trust them with any other claims?

The following excerpt was taken directly from the business website of the cybersquatter who used a confusingly similar domain name to my own company domain name for several years. His hope was to divert consumers to his company.  I never filed charges against him and eventually he stopped using the domain name.  Do you think cybersquatting is Business Identity Theft?

“Don’t you get tired of company misrepresentations?  It seems that no matter the industry, you’ll be told anything just so someone can sell a service or product… We can’t stress enough to verify what you’re told.   Seeing is believing.  If you discover a false claim, point it out.   If you believe you were hurt or could be hurt by these false claims, you should take legal action.” 

Ironic, isn’t it!