Recently I had the experience with a “cyber squatter.”
Cyber Squatters are people who list hundreds of unused domain names and wait for the call. And then they will offer to sell your name to you.
A Moodswing Media client has owned the trademark on his business name since 2006. The squatter listed the name and its various on line versions in 2007. (.com, .ca, etc)
There were 4 domain names that my client needed to continue to grow his business. The offer from the squatter was $4000.00 US dollars.
There must be laws in place to protect you and your property, your NAME. That’s what I thought. So after a little research:
"Cases of Cybersquatting often cause the most concern to trademark holders and have been the subject of the majority of litigated disputes. Generally, however, if someone who lacks a legitimate claim registers a domain name with the intent to sell the name, prevent the trademark holder from gaining access to the name, or divert traffic, this activity will be considered Cybersquatting. The case law in the area of cybersquatting is settled. No cybersquatter has won a court case against an intellectual property holder anywhere in the world. When confronted with such bad faith behavior courts have stretched existing law in order to prevent the cybersquatter from maintaining control over the domain name".
Sounds simple enough, but the problem is that you have to sue the cyber squatter to get your own name back in your possession. That can be an expensive, drawn out process and the squatters know it. They bank on the fact that you will weigh the legal cost, the many months it will take for lawyers to go back and forth, the possibility to end up in court, not to mention the lost opportunity cost and you will settle and pay them.
In our case we made a decision to buy his names and after negotiations we were able to get the names for $2,750.00 US.
Yes, it sucks and it’s wrong, but yet there it is.
Cyber Squatters are pros. Most have been doing it for many years. They have heard it all, the yelling, the threats and will still make a very nice living while waiting for your call.
Until the laws are modified and caught up to the speed of the internet, these parasites of the web will continue to thrive.
Large companies such as McDonalds, Nike or some other version of multi-national companies that may have an army of lawyers to go after the basement dwellers can quickly scare them off. But if you are not one of these large companies, you need to take preemptive steps. Most victims of cyber squatting are small to medium size businesses or entrepreneurs. Even companies with “tech guys” get burned.
Here are a few suggestions that may help you;
- Go to one of the many domain registries and buy as many variations of your business name as possible with as many available extensions as possible. It only costs around 10.00 a year.
- If you are even thinking about launching a new business or name change, first go online and see if the name is available.
- If it is, buy it and then trademark the business name.
- Buy YOUR name as a domain name. Think about the future and primary points of contact. Currently 75 to 85 percent of potential customers have visited your website prior to first contact. How long do you think it will be before everyone branches beyond Face Book?
- If you find that there is someone sitting on your name, there are great sites that will help you with a secure purchase and execute the transaction. Escrow.com, Domainsatcost.ca. In Canada you need to be registered with CIRA (Canadian Internet Registry Authority).
Take a few minutes and avoid the “dough-main” name scam.
Since you were probably thinking that this edition of the MSM would focus on the famous Seinfeld episode… here’s your payoff.
If you are too young to remember with this particular episode, ask your mom and watch her face.
Stay in a good mood
Brad
Cyber Squatters are people who list hundreds of unused domain names and wait for the call. And then they will offer to sell your name to you.
A Moodswing Media client has owned the trademark on his business name since 2006. The squatter listed the name and its various on line versions in 2007. (.com, .ca, etc)There were 4 domain names that my client needed to continue to grow his business. The offer from the squatter was $4000.00 US dollars.
There must be laws in place to protect you and your property, your NAME. That’s what I thought. So after a little research:
"Cases of Cybersquatting often cause the most concern to trademark holders and have been the subject of the majority of litigated disputes. Generally, however, if someone who lacks a legitimate claim registers a domain name with the intent to sell the name, prevent the trademark holder from gaining access to the name, or divert traffic, this activity will be considered Cybersquatting. The case law in the area of cybersquatting is settled. No cybersquatter has won a court case against an intellectual property holder anywhere in the world. When confronted with such bad faith behavior courts have stretched existing law in order to prevent the cybersquatter from maintaining control over the domain name".
Sounds simple enough, but the problem is that you have to sue the cyber squatter to get your own name back in your possession. That can be an expensive, drawn out process and the squatters know it. They bank on the fact that you will weigh the legal cost, the many months it will take for lawyers to go back and forth, the possibility to end up in court, not to mention the lost opportunity cost and you will settle and pay them.
In our case we made a decision to buy his names and after negotiations we were able to get the names for $2,750.00 US.
Yes, it sucks and it’s wrong, but yet there it is.Cyber Squatters are pros. Most have been doing it for many years. They have heard it all, the yelling, the threats and will still make a very nice living while waiting for your call.
Until the laws are modified and caught up to the speed of the internet, these parasites of the web will continue to thrive.
Large companies such as McDonalds, Nike or some other version of multi-national companies that may have an army of lawyers to go after the basement dwellers can quickly scare them off. But if you are not one of these large companies, you need to take preemptive steps. Most victims of cyber squatting are small to medium size businesses or entrepreneurs. Even companies with “tech guys” get burned.
Here are a few suggestions that may help you;
- Go to one of the many domain registries and buy as many variations of your business name as possible with as many available extensions as possible. It only costs around 10.00 a year.
- If you are even thinking about launching a new business or name change, first go online and see if the name is available.
- If it is, buy it and then trademark the business name.
- Buy YOUR name as a domain name. Think about the future and primary points of contact. Currently 75 to 85 percent of potential customers have visited your website prior to first contact. How long do you think it will be before everyone branches beyond Face Book?
- If you find that there is someone sitting on your name, there are great sites that will help you with a secure purchase and execute the transaction. Escrow.com, Domainsatcost.ca. In Canada you need to be registered with CIRA (Canadian Internet Registry Authority).
Take a few minutes and avoid the “dough-main” name scam.
Since you were probably thinking that this edition of the MSM would focus on the famous Seinfeld episode… here’s your payoff.
If you are too young to remember with this particular episode, ask your mom and watch her face.
Stay in a good mood
Brad
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