Cyber-Squatters: Not Your Mainstream Informal Settlers

As the Government continues to fail to alleviate the problem of the rampant influx of informal settlers in Metro Manila, contrary to its patently false claims, a new breed of “informal settlers” have disembarked Phiilippine domain. Indeed, its presence is illusory. No physical infrastructures to demolish. No sanitary problems to be alarmed about. No sight/site to be considered as an eyesore. Yet, its presence threatens and vexes our forever-volatile economy. Welcome the cyber squatters.

Cyber-squatters register domain names that very much resemble the domain names, products, service marks or trademarks of successful businesses, with which they have no connection. Since registration of domain names is moderately inexpensive, carried out on a “first come-first served” basis, and accomplished without the prerequisite of attesting ownership of the terms registered, infringement on the intellectual property rights and brands of a business is a trouble-free and lucrative occupation for a cyber-squatter.

As the owners of these registrations, cyber-squatters usually enlist these domain names at domain auction houses for public sale or tender them for sale directly to the business entity or person concerned, at outrageous mark-up prices, extremely beyond the cost of registration. Thus, those business entities with reputable brand identities and trademarks lethargic to register their trademarks as domains witnessed their trademarks held hostage by these opportunistic cyber-squatters.

Alternatively, these cyber-squatters may choose to hold on to the registration and exploit the reputation of the entity related with such domain name to lure business for their own sites. Since cyber-squatters receive website traffic that was intended for a business entity’s website, but is otherwise directed to the former’s domain, cyber-squatters therefore sell ad spaces on their sites and are remunerated for every “hit” on the internet advertisement positioned on their site.

Indeed, from the business standpoint: internet is no longer the “future”; it is a necessity of the present. Businesses, regardless of size, need to have excellent online presence. Such presence commences by holding a domain name that would lead its customers to its authentic “home”. Protecting a vital brand name or trademark online can be costly. However, it is far more costly to market a lesser-quality domain name than to simply purchase a more desirable domain name.

In the end, it can be said that the domain name field is just like the stock market. Both are a way of maintaining the value of one’s money.