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Cybersquatting - What Is It And Why Does It Matter?

What is "Cybersquatting"?

Cybersquatting (also known as domain squatting), according to the United States federal law known as the Anticybersquatting Consumer Protection Act, is registering, trafficking in, or using an Internet domain name with bad faith intent to profit from the goodwill of a trademark belonging to someone else. The cybersquatter then offers to sell the domain to the person or company who owns a trademark contained within the name at an inflated price.

The term is derived from "squatting", which is the act of occupying an abandoned or unoccupied space or building that the squatter does not own, rent, or otherwise have permission to use.

Some countries have specific laws against cybersquatting beyond the normal rules of trademark law. The United States, for example, has the U.S. Anticybersquatting Consumer Protection Act (ACPA) of 1999. This expansion of the Lanham (Trademark) Act (15 U.S.C.) is intended to provide protection against cybersquatting for individuals as well as owners of distinctive trademarked names. However, some notable personalities, including rock star Bruce Springsteen and actor Kevin Spacey, failed to obtain control of their names on the internet.

One notable case was Microsoft v. MikeRoweSoft. This case was a legal dispute between Microsoft and a Canadian Belmont High School student named Mike Rowe over the domain name "". Microsoft argued that its trademark had been infringed because of the phonetic resemblance between "Microsoft" and "MikeRoweSoft".

The case received international press attention following Microsoft's perceived heavy-handed approach to a 12th-grade student's part-time web design business and the subsequent support that Rowe received from the online community. A settlement was eventually reached, with Rowe granting ownership of the domain to Microsoft in exchange for an Xbox and additional compensation.

Jurisdiction is an issue, as shown in the case involving Kevin Spacey, in which Judge Gary A. Feess, of the United States District Court of the Central District of California, ruled that the actor would have to file a complaint in a Canadian court, where the current owner of resided. Spacey later won the domain through the Forum (alternative dispute resolution) f.k.a National Arbitration Forum.

Since 1999, the World Intellectual Property Organization (WIPO) has provided an arbitration system wherein a trademark holder can attempt to claim a squatted site. In 2006, there were 1823 complaints filed with WIPO, which was a 25% increase over the 2005 rate. In 2007 it was stated that 84% of the claims made since 1999 were decided in the complaining party's favor.

With the rising of social media websites such as Facebook and Twitter, a new form of cybersquatting involves registering trademark-protected brands or names of public figures on popular social media websites.

On June 5, 2009, Tony La Russa, the manager of the St. Louis Cardinals, filed a complaint against Twitter, accusing Twitter of cybersquatting. The dispute centered on a Twitter profile that used La Russa's name, had a picture of La Russa, and had a headline that said "Hey there! Tony La Russa is now using Twitter." The profile encouraged users to "join today to start receiving Tony La Russa's updates." According to La Russa, the status updates were vulgar and derogatory. La Russa argued that the author of the profile intended, in bad faith, to divert Internet traffic away from La Russa's website and make a profit from the injury to La Russa's mark. On June 26, 2009, La Russa filed a notice of voluntary dismissal after the parties settled the case.

It's because of these circumstances that cybersquatting has become a very complex and difficult subject for courts to litigate.

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