What is Cybersquatting? An Explanation the Shady Practice

CNN reports that the U.N. is seeing an influx of cybersquatting complaints, and so you might ask, “What is cybersquatting?” The term is derived from squatting, which is the act of moving yourself into a property without actually having any valid claim to or ownership of that property. Similarly, cybersquatting is the practice of registering Internet domain names one does not have a valid claim to, often with the intention of turning a profit.

An Explanation of Cybersquatting

Have you ever typed in the address of a site like Microsoft’s or Google’s, and landed on an unknown page that you never intended to visit? Examine the address you typed again — you probably made a minuscule spelling error. Cybersquatters take advantage of household domain names like google.com and microsoft.com by registering similar names with variations on the spelling, hoping to attract traffic from web users who make innocent spelling mistakes. If you’ve ever landed on one of these pages, you’ve fallen into the hole of a cybersquatter.

Cybersquatters also draw traffic by registering the names of new products, services, and trademarks before the rightful owners have a chance to buy them. If a company makes the mistake of publicizing a new product without first buying domain names related to that product, cybersquatters will often rush to register those names first.

How Cybersquatters Profit

Cybersquatting exists because there is a profit to be made, plain and simple. Pages owned by cybersquatters are filled with advertisements — banner ads, text links, affiliate products, and more. Sometimes these advertisements are carefully crafted so that they directly relate to the real site that you were trying to visit, in an attempt to increase the probability that you’ll click through. Other times, the ads just bombard you with the same junk that arrives in your e-mail every day: pornography, pharmaceuticals, and such. If you click on one of these advertisements, the cybersquatter has profited from your arrival to their site.

Many domain names owned by cybersquatters are for sale. Cybersquatters realize the value a trademark’s domain names holds for the rightful owner, and are often willing to sell the domain name at an inflated price.

Some cybersquatters use their digital properties to spread viruses, trojans, and spyware. You should be suspicious whenever a strange site asks you to download a program. The program’s creator may be trying to spy on your activities, or deliver ads to your desktop.

The Case Against Cybersquatting

Companies and organizations who see themselves as the victims of cybersquatting contend the ’squatters register the names in bad-faith, and are not entitled to be profiting off copyrights and trademarks they hold no claim to. Many countries have laws against cybersquatting, such as the Anticybersquatting Consumer Protection Act in the U.S. The U.N., through the World Intellectual Property Organization, provides a forum where these victims can attempt to claim ownership of cybersquatted domain names without purchasing them from the ’squatters. According to the CNN article, WIPO registered 1,823 cybersquatting complaints in 2006.

Cybersquatting Controversy

Some argue that cybersquatting law leaves room for large companies to exploit “the little guy”. One notable case involved a computer programmer who owned the domain name tatooine.com. Tatooine is the name of Luke Skywalker’s home planet in the Star Wars Trilogy. The programmer purchased the domain name in 1997, and used it to host his personal home page, as well as items related to his freelance programming business. He argues there was never any malicious intent on his part, but nevertheless, Lucasfilm eventually took control of the name. You can read his account of the ordeal on his new site.

Cybersquatting Lessons to be Learned

Whenever you land on a foreign web site and become suspicious, follow your gut instinct. Beware of strange links, and be especially careful not to download and run any programs. If you’re having trouble finding the exact address of a product or company, try doing a google search on the name.

If you’re a company, always purchase your domain names before your send out your press releases!