NETNAMES


VIRTUAL THREAT REQUIRES REAL RESPONSE


Cybersquatting is a common and complicated issue


facing brands with an


online presence. Andy Churley and Chloë


Garrett of NetNames talk to WIPR about the problem and what can be done to solve it.


WIPR: The threat cybersquatting poses to trademark owners has been well documented, but to what extent should it really be feared?


Chloë Garrett: At the end of 2009, the number of domain name disputes involving cybersquatting was at its lowest for several years. Tis decline has been noted. But one and a half thousand disputes have already been filed this year, and more are expected. Tis could be due to either an increased awareness of the dispute processes available, or contrary to common opinion, cybersquatting may be on the rise.


WIPR: Why is the number of disputes rising?


Andy Churley: In 2009, ccTLDs made up 8 percent of the domain name disputes filed. Tis has risen to 11 percent in 2010 so far. Te liberalisation of ccTLDs such as .co and .ee may cause this percentage to continue to increase. Kraſt Foods and Hugo Boss are brands that have suffered from cybersquatting, with the Kraſt.co and HugoBoss.co domain names, respectively. Both of these domains lead to pages of pay per click advertising that generate revenue for the cybersquatter.


WIPR: What damage can a cybersquatter cause to a brand?


C.G.: Tis can vary depending on the content being displayed on the squatted site. Te presence


70 World Intellectual Property Review September/October 2010


of pay-per-click adverts can cause confusion about the professionalism of the brand. A customer expecting to find a genuine site can land on a site displaying adult content or gambling, causing considerable damage to the brand’s reputation. A large proportion of squatted domains are purchased solely with the intention of selling them on at an inflated price to the rightful owner. Tere is also revenue lost through the traffic deviation of customers.


A.C.: Trademark owners need to be aware that cybersquatters can pose even greater risks. Cybersquatted domains are oſten used for phishing attacks or for the sale of counterfeit products. Trademark owners have responsibilities in these situations. If a customer becomes the victim of fraud through a phishing site, they may blame the trademark owner. Te squatted site may be used for the sale of counterfeit items. Tis will harm the reputation of the trademark owner because the customer may buy a counterfeit item believing it to be a genuine product of the trademark owner. Te customer may not be satisfied with the quality of the product, which they will then attribute to the trademark owner’s brand.


C.G.: In the US, the government and intellectual property owners have a collective responsibility to take action against violations of federal intellectual property laws. If a trademark owner is


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