Domain Name Cybersquatting: A Critical Analysis of Legal Remedies and Enforcement Mechanisms

The fast growth of the internet has dramatically changed the way in which business, communications, and information exchange take place worldwide. The key role in this revolution is played by the domain name system (DNS). This system provides people with an easy way of finding resources on the internet. What is important here is that today domain names are not just technical addresses, but also represent brands and trademarks of businesses that use these domain names as a part of their identification.1 Companies spend considerable money on creating their internet presence and thus the issue of domain names is becoming increasingly important as a part of intellectual property law.2 On the other hand, the rising commercial value of domain names has resulted in different types of abuse, namely cybersquatting. Cybersquatting is the registration, trafficking, or utilization of a domain name with an aim of deriving financial gain through the exploitation of the good will of another person’s trademark. In most cases, cybersquatters register domain names which mirror or are confusingly similar to the trademarks of companies and then try to resell such domain names to the rightful owners at exaggerated prices or make profits out of misleading consumers. Such a trend not only hinders the interests of trademark holders, but also causes confusion among internet users.