Cybersquatting

Basic Concepts of Domain Name Disputes and CyberSquatting

Introduction

Cybersquatting: The internet has brought an enormous revolution in the 19th century which can be associated with the industrial revolution. The internet was launched for the persistence of communication statements between the commonalities but within a small number of years only, it became one of the most significant tools for communication for business transactions, governmental policies, and social interaction. It has provided as well as delivered the opportunities and prospects for the lots of people and carried liabilities in the area of Intellectual Property (IP), data privacy, etc.

The encounters and the challenges that the law has confronted in current years are, how to foster the development of intellectual property on the Internet while preventing as well as avoiding its unauthorized use. We have addresses for our homes and offices. In the same way, domain names are nothing but unpretentious and simple forms of addresses on the internet. These addresses enable the users to locate websites on the net in an easy and stress-free manner. The domain name corresponds to numerous IP (Internet Protocol) numbers that connect several computers and enable a direct network routing system to direct data requests to the correct, truthful, and precise addressee.

What is a Domain Name?

A domain name is a proof of identity i.e. identification string that defines a realm of administrative autonomy, authority, or control within the Internet. Domain names are used in various networking contexts and for application-specific naming and addressing purposes. In general, a domain name identifies a network domain, or it represents or characterizes an Internet Protocol (IP) resource, such as a personal computer used to access the Internet, a server computer hosting a website, or the website itself or any further service communicated via the Internet.

Domain names aids or services to identify Internet resources, like computers, networks, and services, with a text-based label that is easier to memorize than the numerical addresses utilized in the Internet protocols. A domain name may represent entire, whole, or complete collections of such resources or individual instances. Individual Internet host computers use domain names as host identifiers, also termed hostnames. The term host name is also used for the leaf labels in the domain name system, usually deprived of or without further subordinate domain namespace.

A significant function of domain names is to provide easily recognizable and memorizable names to numerically addressed Internet resources. This abstraction allows any resource to be moved to a different physical location in the address topology of the network, worldwide, or locally in an intranet. Such a move typically needs changing the IP address of a resource and the corresponding translation of this IP address to and from its domain name. Domain names are used to establish a unique identity. Organizations can choose, pick or select a domain name that corresponds to their name, helping Internet users to reach them effortlessly.

What is Cybersquatting?

Cybersquatting is a kind of domain name dispute which is prevalent worldwide. It is a practice where individuals, entities, or personalities buy domain names reflecting the names of existing companies, with an exclusive or sole intention and purpose to sell the names back to that company to attain profit when they want to set up their own website.

There are numerous types of cybersquatting. Most frequently used is typosquatting where a cyber-squatter registers domain names containing variants of popular trademarks. Typo squatters believe that the internet user will mark the typographical errors while entering the domain names into their web browsers.

In Indian Legislation Cybersquatting has been defined as “an act of obtaining deceitful registration with an intent to trade the domain name to the legal owner of the name at a premium” according to the hon’ble court in the case of Manish Vij v. Indra Chugh [AIR 2002 Del 243].

Domain Name and CyberSquatting Disputes

Cybersquatting and Domain Name Disputes, both are concealed under Trademark Law. There are numerous instances of abusive domain name registration and infringement of trademarks on the internet that the law of trademark has extended, stretched, and prolonged its purview to domain names as well. Maximum of the domain name disputes and cybersquatting cases are dispersed/ distributed or delt under the passing off when there are no specific provisions on the issue.

The dispute of domain name is a conflict that arises when more than one separate individual or group believes that they have the right to register a specific domain name. Most commonly, a domain name dispute would arise when a domain name comparable to a registered trademark is registered by an individual or association who is not the trademark holder. All domain name registrars must follow the ICANN’s Uniform Domain-Name Dispute-Resolution Policy (UDRP)

Relation Between Domain Name and Trademark

In today’s realm of Domain name serves as well as assists as an online trademark. It also designates quality and a repository of the goodwill of an organization. Alphabetical domain names were developed to make the addresses easier and stress-free for individuals to remember and use when communicating on the Internet. Such domain names are catchy words or well-known names of individuals or companies, for instance, “nokia.com” or “samsung.com”.

A Domain name serves a similar determination or purpose online, which a trademark serves in offline business transactions. It assists, supports, and helps the customers identify the source of goods/services provided by the owner of such goods and services. Consequently, Domain names are of utmost prominence in online businesses. They are significant because of the following reasons:

  • Promotion of business and building up of customer base online and offline by way of advertising on the web.
  • Establishment of the credibility of the website and the business on the internet.
  • Easy access to customers and prospective customers.

The existence of domain names without or deprived of the requirement or obligation of the registration brought the concept or the notion of “first come, first served”. This has produced or created disputes among the owners of the trademark because several speculators have started to register domain names to resell them for a higher price to the trademark owners. The difficulty or problem arose with the trademark owners because their entitlement to IP rights makes them feel ripped off by this new practice named “cybersquatting”. Hence, anybody who desires or wishes to register a domain for the first time which is trademarked can do so; whatsoever problems may arise will have to be confronted and tackled later.

Conclusion

The reason or the motive of the growth in the incidence is the growing importance of domain names in the e-commerce trend. Domain name holds a good prominence, significance, and importance as there can be only one user of a domain name, unlike the trademark law where there can be two or more users of the same or similar trademark for numerous classes of goods and services under the honest or truthful concurrent use if such use does not amount to infringement or causing as well as instigating confusion or dilution. But this type of provision is not applicable in the case of domain names. Since, the domain registration system follows the “first come, first served” policy. So, once an individual registers a domain name comparable or similar to a trademark, any other individual using a similar mark is deprived of or denied registration of another domain name similar to that trademark. That means only one user is allowed to use a particular domain name and any other application for the same domain name will be refused or rejected. This is the central or primary purpose as to why trademark owners prefer to get their trademarks registered as their domain names for commercial and professional business.

The cases of trademarks and domain name conflict primarily encompass issues related to the use of goodwill of a trademark by an infringer in the domain name to divert the potential customers of the owner of the trademark to a website not connected or associated with that trademark, or use of meta-tags resulting or consequential in dilution or weakening of trademark or unauthorized registration of the trademark as a domain name with the intent to squeeze i.e. extort cash or to prevent or stop the owner from utilizing the trademark.

 

The Negotiable Instruments Act 1881

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