Knowing that a competitor is using a domain name that is identical or “confusingly similar” to yours is a problem frequently encountered in the internet-driven business world of the 21st century.

Cybersquatting is the purchase of a domain name in bad faith.

Usually bad faith? it is the intention to sell the domain name to the legal owner. Several large companies (including Panasonic, Hertz, and Avon) have paid large sums of money to purchase their domain names from parties that had no legitimate rights to the domain name.

What if your last name sounds like a famous name?

If your last name sounds like a trademark name, like McDonald’s Plumbing, its use is legitimate because it is not confusingly similar to McDonalds. In some situations, the trademark owner can still challenge the use of a surname. For example, see Microsoft’s dispute discussion with teenager Mike Rowe over his website mikerowesoft.com (Click here: CNN.com – Teen Struggles to Maintain MikeRoweSoft.com – January 20, 2004).

What should you do if someone is using a name? Confusingly similar? to you?

The first step is to write a letter. Before firing a nasty “cease and desist” letter, read [http://www.webtechniques.com/archives/2001/05/legal/] to understand how it can backfire. I recommend that you think carefully about the result you want. Then write a letter based on facts, summarizing the situation and making it clear what you want them to do (for example, transfer or cancel the domain name on a specific date). Conclude with a statement that you hope the situation can be resolved without escalation and you need to hear from them before a specific date.

The next step, if the letter does not produce a satisfactory response, is to file a complaint with the Internet Corporation for Assigned Names and Numbers (ICANN) under the Uniform Domain Name Dispute Resolution Policy (UDRP). Everyone who registers a domain name automatically agrees to be bound by this policy. This is a paper-based arbitration process that is relatively quick and inexpensive compared to court proceedings and can result in the transfer of the domain name. For more information see: http://www.icann.org/udrp/udrp-policy-24oct99.htm

If you want money damages, you must file in accordance with the federal Consumer Protection Against Cybersquatting Act (ACPA). In addition to authorizing the transfer of the domain name, the Act gives the court the discretion to award statutory damages of not less than $ 1,000 and not more than $ 100,000 per domain name. For more information, see: [http://www.patents.com/acpa.htm]

In conclusion, there are ways to resolve domain name disputes. As always, an ounce of prevention is better than cure. Taking steps to register your domain name and trade / service marks are good business practices.
If you have taken steps to protect your name by reserving the domain name and registering a trade / service mark, you are in a strong position to defend your rights. If you haven’t registered your name, there is no better time than the present.

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