The Perils of Cybersquatting
By Nina L. Kaufman, Esq

Amassing domain names may seem expedient when needed for a client or handling a pet project of your own. However, should those names approach the trademarks of others, you might violate the Anti-cybersquatting Consumer Protection Act (ACPA).

The ACPA, enacted in 1999, seeks to prevent the "bad faith" registration of domain names that violate the rights of trademark owners. "Bad faith" can include a registrant's offer to sell or transfer the domain name (especially at a price higher than originally paid), and the registration of a number of domain names that are similar to others' trademarks.

Significantly, the improper registrant need not actually use the domain name. Statutory penalties can range from $1,000.00 to $10,000.00 per domain name.

Through various agencies, the Internet Corporation for Assigned Names and Numbers (ICANN) coordinates domain name assignment and disputes. Most notably, the World Intellectual Property Organization (WIPO) resolves international disputes between private parties; the National Arbitration Forum (NAF) is the largest provider of domain name dispute resolution in North America.

Arbitration through WIPO and NAF has several advantages. First, the process can be significantly less expensive and time-consuming than litigation in court. Also, a complainant can draft and submit a complaint online, as the WIPO website in particular offers a form complaint that can be completed easily. Finally, decisions of the arbitration panel are binding upon the parties and the domain name registrars.

So, before you gobble up a bunch of domain names without looking into the trademark rights of others, keep in mind that the new cyber-justice can be swift!

© 2004-2008 Ask The Business Lawyer LLC. Nina L. Kaufman, Esq., is a business attorney and the President of Ask The Business Lawyer LLC, which offers easy-to-understand business law resources that protect small businesses and save them money. To learn more, and receive our FREE "Words to the Wise" ezine, visit www.WiseCounselPress.com or contact Wise@AskTheBusinessLawyer.com. This article is for your general information only and is not intended to substitute for the specific advice of legal counsel.

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