Archive for the ‘Cybersquatting’ Category

Cybersquatter Smack Down

Tuesday, December 30th, 2008

Verizon Communications recently announced a major victory against cybersquatters, with a $33.15 million award (the largest ever) from a federal court against domain registrar OnlineNIC. Cybersquatting comes in many forms, with each trying to confuse or mislead a consumer who is looking for a trademarked site. Cybersquatters have one goal - to profit (directly or indirectly) on the strength of someone else’s trademark and other intellectual property.

“This case should send a clear message and serve to deter cybersquatters who continue to run businesses for the primary purpose of misleading consumers,” says Sarah Deutsch, Verizon vice president and associate general counsel. “Verizon intends to continue to take all steps necessary to protect our brand and consumers from Internet frauds and abuses.”

Some typical methods used for cybersquatting include:

  • Typosquatting - misspelled variations of trademarked URL’s. Used to “catch” all of the misspelled direct traffic, by creating landing pages filled with ads and affiliate links.
  • Pay Per Click search ads that use misspelled variations of brand trademarks and confuse the person searching.
  • Attempting to profit by selling domains to the company that owns the trademark intellectual property.
  • Using domains/sites to divert traffic from a competitor, or communicate negative messaging to the public (XYZincSucks dot com).

Cybersquatters often register web addresses close to those of leading retailers and other companies, hoping to lure unwitting consumers and make money by serving them pay-per-click ads. For instance, a consumer who, instead of typing the web address llbean.com, enters llbeen.com is taken to a site that offers links to travel, credit and clothing sites unrelated to apparel retailer L.L. Bean.

Increasing popularity of internet search, regardless of purchasing channel or industry, makes brand control more important (and challenging). The more popular the brand is, the more cybersquatters will try to capitalize on the companies goodwill. CitizenHawk is one company that is leading the fight against cybersquatters, by providing digital brand management solutions that enable companies to protect their brand online. They have a very cool tool on their homepage that will instantly show you how many domains are squatting on your brand.

I’m sure it will take some time, and many more lawsuits, before cybersquatters start following the rules. So take action, and don’t let these bottom feeders mess with your most valuable asset - your brand.

View original article from Internet Retailer