Cybersquatting is an increasingly serious issue, according to figures released recently by the World Intellectual Property Organisation (WIPO).
WIPO’s Arbitration and Mediation Centre handles domain name disputes under a specially created procedure called the Uniform Dispute Resolution Policy (UDRP). The UDRP has proven popular from the start as it is faster, cheaper and simpler than litigation through the courts.
The UDRP cases are largely about preventing cybersquatting – ie the registration in bad faith of a domain name in which the registrant has no legitimate interest, and which is confusingly similar to another person’s trademark. Indeed, 83.9 per cent of the cases have been won by the party complaining of cybersquatting.
Complainants range from small companies to international organisations such as Hitachi, Porsche and Calvin Klein, and personalities like Madonna and Morgan Freeman.
The UDRP was created in 1999 and since then almost 8,500 cases have been heard. However, 2005 saw a sharp rise in the number of cases – there was almost a 20 per cent increase from 2004.
It is difficult to determine why 2005 saw the highest case load in four years. However, the statistics show that trademark owners need to be very conscious about protecting their intellectual property. A well-designed intellectual property management system should include the registration and renewal of domain names—including keeping on top of new domain name releases such as .travel and .jobs—a vigilant and regular watch for improper uses of the trademark, and a strategy for rigorous enforcement against cybersquatters.
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