Cybersquatting (part 1)

“Cybersquatting” also known as domain squatting, is the act of registering, selling or using a domain name with the intent of profiting from the goodwill of someone else’s trademark. (http://www.nolo.com/article.cfm/objectID/60EC3491-B4B5-4A98-BB6E6632A2FA0CB2/111/228/195/ART/). Cybersquatters hold for ransom the names of existing businesses as domain names, the release of which is given to the highest bidder – usually an owner of a trademark contained in the domain name.

Bad faith characterizes this practice since the name is taken with the intent to profit from a trademark owned by someone else. The profit is earned by selling these names with prices far beyond the amounts the Cybersquatters may have paid when they registered the domain name. The use of defamation or slander, made regarding businesses the name is suppose to represent, is only one of the methods these squatters use in order to compel the owners to purchase the domain name from them.

It is one of the many legal issues that needs to be addressed by legislation, particularly in the field of Intellectual Property Law. One might ask “may this be considered a crime? “Does the fact that bad faith is involved make the act criminal or may the problem be properly addressed by civil remedies?”