Contents
What is Cybersquatting? Lets discuss its Impact on businesses and what are the law holds for the injured party.
The advent of internet has revolutionized businesses bringing about an astounding transformation in the ways they operate and conduct operations. With increased online presence, businesses are breaking geographical frontiers to reach customers on a global scale. Such a wide access would have been unachievable otherwise.
Brands, now possess unique online personalities in terms of their logos, trademarks, design, business names etc. This has
become their primary identifier specifically their domain name or website name.
Imagine someone taking over this identity by creating a domain name which is similar or identical or alike to the existing one. The intention is to divert genuine business to this fake domain with the intent to profit out of it. For example – ABAB a genuine business website (www.abab.com) is registered fraudulently as www.abaab.com or www.ababb.com.Feels like a theft or a shakedown, isn’t it?
Welcome to the world of CYBERSQUATTING!
For entrepreneurs who are unaware of this practice, note that it is a thorn in the flesh. Domain names resembling established and reputed brands are registered online with a bad intent to create confusion and deceive consumers to gain profits. Hence, the term “CYBERSQUATTING.”
A real life example will help one gain a better insight.
India’s homegrown diary brand, ‘Amul,’ faced consequences of cybersquatting. Fake websites using the word “Amul” in their suffix and prefix were created and money was being duped by offering fake dealerships, distributorships and jobs. This impersonation of Amul led to brand dilution and confusion. Impostors profited out of the brand name and reputation.
Amul has been successful in receiving legal relief wherein the Delhi High Court has issued orders to protect the trademark and curbing the access to these fake websites. The court has also directed that domain registrars shall not sell or offer any domain names with the name Amul in any combination.
Using simple typos, adding suffixes and prefixes, using third party identity, using names of famous personalities or a combination of these and many more is/can be termed as cybersquatting.
Cybersquatting involves registering, selling, or using a domain name with the intent of profiting from the goodwill of someone else’s trademark.
Here are the four main types of cybersquatting
- Typo Squatting (Typosquatting)
This involves registering domain names that are slight misspellings or variations of popular brands or websites. For example, registering “goolge.com” instead of “google.com”. The goal is to capture traffic from users who mistype the address.
- Name Jacking
This involves registering domain names that include the names of individuals, especially celebrities, politicians, or well-known public figures, with the intent to sell the domain back to the person or use it for deceptive purposes.
- Combo Squatting/ Identity mischief
This involves registering a domain that combines a popular trademark with another word or phrase. For example, registering “nike-shoes.com” or “appledeals.com”. The aim is to deceive users into thinking the site is affiliated with the brand.
- Reverse Cybersquatting (Reverse Domain Name Hijacking)
This occurs when a trademark owner attempts to secure a domain name by making false cybersquatting claims against the domain’s rightful owner. The intent is to bully or force the domain owner into giving up the domain. Each of these types of cybersquatting can cause significant issues for trademark holders, including loss of traffic, damage to reputation, and potential legal battles
Who are likely to be Targeted
Business owners are common targets of cybersquatting. While they spend years building their reputation and goodwill, it is the cyber squatters who are reaping the benefits of the same. In addition to businesses, their customers i.e. other businesses or individuals also fall prey to cybersquatting in terms of data theft, fraud, loss of money, malware attacks and much more causing disruption in the end user systems and servers. The following graph explains the increase in the incidences of domain name cases and domain names filed with WIPO in last 24 years.
Source : https://www.statista.com/statistics/416159/domain-name-cases-filings-wipo/
These are incidences that have come into light, the intensity of the situation is likely to be much worse. Cybersquatting is a significant challenge affecting many business sectors such as manufacturing, service industries, retail, e-commerce and so on. Manufacturing units face the problem of intellectual property theft, brand dilution and financial loss. This can be understood with case of Tata Sons. Tata Sons had filed a case with WIPO against Randy Ulring, resident of USA, who had registered a domain name <tatatruck.com>. It was established that the word TATA carries reputation, goodwill, distinctiveness and is an essential feature of its corporate name. Also, Tata Motors is among the top truck manufacturers in the world. Such a domain name can cause confusion and is infringement of its trademark. The name is registered with the intention to deceive and gain advantage. The disputed domain name had created web pages pertaining to TATA vehicles and offered online bookings. WIPO accepted that this was misleading, deceitful, caused brand dilution and losses to TATA Motors. The disputed name was transferred to TATA Motors.
Service industries include a wide spectrum and their main concerns are sensitive data theft, client trust issues and financial losses. Such an incident occurred with Infosys Limited wherein it filed a complaint with WIPO against Domain admin of <Infosys.ai>. The domain name was intended to be sold with a view to make profits. It was held that the domain is identical, confusing and used in bad faith.
On the other hand, retail and ecommerce sector is perpetrators favourite. Recent incidences of perpetrators creating fake websites of D-Mart, Big Basket and Big Bazaar to lure customers with huge discounts, tricking them to make purchases and stealing their financial information for profit making has come to light. Similar instances have also occurred for travel booking websites, job portals and so on.
Even individuals are not barred from this situation. Famous actor Anil Kapoor has sought protection against websites, mobile apps etc. from using his personality attributes without his consent. The National Informatics Centre issues guidelines for registration of domain names wherein the state governments, ministries, departments and organizations shall have gov.in as their domain name. Government websites are a treasure trove in terms of intelligence, personal,economic and social data. Luring citizens and obtaining money and information is a prime motive behind their domain name cybersquatting.
This makes it crystal clear that cybersquatting is a prevalent issue which cannot be ignored. Taking help of the law and legal professionals is where one can stay a step forward.
What the law holds for the injured party
Injured party or businesses impacted by cybersquatting can get protection under Trade Marks Act, 1999. In the absence of any specific law pertaining to cybersquatting, domain names are treated as trademarks established around the use, distinctiveness and reputation of the brand. The Internet Corporation of Assigned Names and Numbers (ICANN), a global group, maintains a repository of domain names and manages the supply of the same. ICANN has adopted a Uniform Domain Name Dispute Resolution Policy (UDRP) for resolution of these issues. WIPO is a provider of these UDRP wherein the injured party can bring proceedings for the same. India is a signatory to WIPO and hence required to follow UDRP. In addition, the .IN Dispute Resolution Policy (INDRP) formulated by the .IN registry also helps in the domain dispute resolution. Thus, injured party has options to try proceedings under UDRP, INDRP and Trade Marks Act, 1999.
However, with societal changes, law also evolves to be effective and relevant. The Information Technology Act, 2000, deals with many cybercrimes but not cybersquatting. This implies a need for a new legislation to deal and regulate the same. There are no specific legal remedies for cybersquatting and are decided on case to case basis. Nevertheless, our courts have taken a concrete approach in bringing justice to the injured.
At Aanand Nirmal & Associates, we assist businesses and entities in navigating complex legal situations. During a recent legal audit, a renowned social work organization based in Mumbai discovered that a similar entity in another region of India had registered their name under the Trademark Act, raising concerns about potential reverse cybersquatting. Within three months, our client received a notice regarding this issue. Thanks to our proactive measures, we had already identified and addressed all potential loopholes, providing our client with a strong advantage in this dispute.
We advise all businesses to consult with their legal advisors to protect their goodwill and name. Taking early action in these matters can help mitigate potential future losses and safeguard your brand’s integrity.
