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Brand name owners have from September 7 to October 28, 2011 to block their brand names from unauthorized .xxx domain name registration. During this period, brand owners can apply to reserve their brand names and keep them out of the .xxx registry for up to 10 years. Reservation costs $225 per brand name.

Brand owners not involved in the adult entertainment industry have obvious reasons to reserve these names. Doing so will keep the name out of the registry. It will also keep a cybersquatter from registering the brand. Failure to reserve the name will not cause a brand owner to lose other rights and remedies for unauthorized registration, but doing so will eliminate the need to resort to them.

Original Article

Across the globe, millions of people use computers every day. Much of the internet activity is business-related. Name recognition is key for both sides of the deal. And no one knows that better than a cybersquatter.

Cybersquatting? What's That?

Cybersquatting is when someone uses or registers a domain name containing someone else's trademark or brand name - like Microsoft - or something very similar to it with a small variation, such as Micrsoft. They may also register domain names under more than one top level domain name, .com, .org, and .net. for example.

Once that's done, cybersquatters typically:

  • Set up web sites using the domain names where unsuspecting shoppers buy what the cybersquatters are selling or visit advertisers on their sites, possibly as a scam or take your identity
  • Wait for an offer from the trademark or brand name owner to sell the domain name, often for hundreds or even thousands of dollars more than what the cybersquatter has invested in it

Cybersquatting took off when the internet was relatively young and unexplored by buying up "locations" called URLs (Uniform Resource Locator). Businesses din't know what cybersquatters new: The internet was going to change how we did everything. Before they knew what was happening, companies found web sites and domain names using their trademarks and brand names.

Cybersquatting Still Happens

In 2005, Utah businessman Austin Linford bought the domain name Pac12.com for a project he was working on. In 2011, the Pac-10 Conference of the NCAA demanded that he stop using the name. Apparently, it was a registered trademark or copyright for future use in its athletic programs. It claimed Linford's use would confuse and deceive consumers about his connection to the Pac-10.

Linford denies he's cybersquatting. He notes no one could have guessed in 2005 that the Pac-10 would expand to Pac-12, and that he didn't buy or register similar names, like Pac-13, Pac-15, etc., as most cybersquatters typically do.

Will Cybersquatting Get Worse?

A spike in cybersquatting is likely, probably in the summer of 2011. That's when new generic top level domain names are expected to hit the internet. Instead of today's domain names with .com, .net, .org and others, the new domain names can use practically any word at all.

For example, you could use a brand name (hamburgerworld.mcdonalds), a city name (ABCcompany.newyorkcity), or any arbitrary word - closet.shoe or garage.car. The possibilities are endless. Unfortunately, it may mean a large-scale scramble to register key, descriptive words and name - much like what happened before.

Take Action to Claim Yours

It's important to realize that cybersquatting is illegal. The Anticybersquatting Consumer Protection Act (ACPA) was enacted in 1996 during cybersquatting's hey-day. Basically, it gives those who hold trademarks and service marks a right to sue someone who uses or registers a domain name containing the trademark or service mark, or something confusingly similar to it, to make a profit.

Under the ACPA, a court can cancel the domain name, order it transferred to the trademark holder and award the trademark holder money damages in some cases.

Other than filing a lawsuit, your options are:

  • Sending the cybersquatter a cease and desist letter, like the Pac-10 did with Linford , basically giving the cybersquatter the chance to stop using the domain name
  • Go to arbitration and have the matter resolved out-of-court with the help of the Internet Corporation of Assigned Names and Numbers (ICANN), an option the Pac-10 may explore
  • Buy the domain name - it may be cheaper and faster than a lawsuit or arbitration

If you're accused of cybersquatting, it's important to show that you didn't register the domain to make money from it by selling to the trademark holder or using its mark to divert its customers to you. You can do this by showing the name is connected to your work or project.

It's probably not a good idea to register domain names you have no intention of using, or with the plan of selling them to businesses with similar names. It's not worth the gamble that the business will opt to pay rather than sue.

Questions for Your Attorney

  • If I notice a domain name or web site using a name close to my trademark but the site is harmless and doesn't impact my business, is there any danger if I don't do anything at all?
  • What can I do if a cybersquatter runs a web site in a foreign country using my trademark?
  • Can someone use my personal name in a domain name without my permission?