Quick Answer
Cybersquatting is the practice of registering, using, or selling domain names that incorporate someone else's trademark with the bad-faith intent to profit from it. Common examples include registering "nike-shoes.com" without Nike's permission to sell it to Nike or redirect traffic. You can fight cybersquatting through UDRP arbitration ($1,500) or the Anticybersquatting Consumer Protection Act lawsuit (potentially expensive but offers damages up to $100,000).
Table of Contents
- What is Cybersquatting?
- Types of Cybersquatting
- How Cybersquatters Profit
- Real-World Cybersquatting Examples
- The Anticybersquatting Consumer Protection Act (ACPA)
- UDRP: International Arbitration System
- ACPA vs UDRP: Which to Choose
- How to Prove Cybersquatting
- Defenses Against Cybersquatting Claims
- How to Protect Your Brand
- What to Do If You're Cybersquatted
- Cybersquatting vs Legitimate Domain Investing
- Frequently Asked Questions
- Key Takeaways
- Next Steps
What is Cybersquatting?
Cybersquatting is registering, trafficking in, or using a domain name with bad-faith intent to profit from someone else's trademark. It became a serious problem in the early internet era when opportunists registered thousands of brand names as domains before companies understood the importance of online presence.
The Legal Definition
Under U.S. law (Anticybersquatting Consumer Protection Act of 1999), cybersquatting occurs when someone:
-
Registers a domain name that is:
- Identical or confusingly similar to a trademark
- Identical or confusingly similar to a dilutive trademark
- Identical to a protected personal name
-
With bad-faith intent to:
- Profit from the trademark
- Sell the domain to the trademark owner
- Prevent the trademark owner from using it
- Disrupt the trademark owner's business
- Attract users through confusion
Key Elements
Not all trademark+domain combinations are cybersquatting. For it to be illegal cybersquatting, there must be:
✓ A valid trademark - Protected by federal or common law ✓ Confusing similarity - Domain looks like or incorporates the trademark ✓ Bad-faith intent - Registered specifically to exploit the trademark ✓ Commercial use - Intent to profit or cause commercial harm
When It's NOT Cybersquatting
These scenarios are generally not considered cybersquatting:
- Legitimate criticism: "microsoftsucks.com" for genuine criticism (protected speech)
- Fair use: Using trademark descriptively without confusion
- Prior rights: You owned the domain before the trademark existed
- Generic terms: Common words that happen to be trademarks in some contexts
- Parody: Clear parody without commercial intent
- News/commentary: Journalistic or educational use
Types of Cybersquatting
1. Direct Trademark Cybersquatting
What it is: Registering exact or near-exact trademark as domain
Examples:
- nike.com (if registered by non-Nike entity)
- coca-cola.com
- apple-computers.com
Intent: Usually to sell to trademark owner for profit
Likelihood of success: Very low—these are almost always recovered through UDRP
2. Typosquatting
What it is: Registering common misspellings of trademarks
Examples:
- gooogle.com (instead of google.com)
- amazom.com (instead of amazon.com)
- facebok.com (instead of facebook.com)
Intent: Capture traffic from typing errors, serve ads, or phishing
Likelihood of success: Very low—also protected under cybersquatting laws
3. Name Jacking
What it is: Registering personal names of celebrities or public figures
Examples:
- tomhanks.com
- elonmusk.net
- taylorswift.org
Intent: Profit from fame, sell to celebrity, or impersonation
Likelihood of success: Low—ACPA protects personal names; celebrities often win UDRP
4. Domain Front Running
What it is: Registering domains immediately after someone searches for them
Examples:
- You search "mytechstartup.com" at a domain registrar
- Registrar or affiliated party registers it before you can
- They offer to sell it to you at premium price
Intent: Profit from insider knowledge of demand
Likelihood of success: Questionable legality; varies by jurisdiction; considered unethical
5. Competitor Cybersquatting
What it is: Competitor registers your brand domain to redirect to their site
Examples:
- Burger King registers mcdonalds.net → redirects to burgerking.com
- Competitor registers your-brand-name.com → shows competitor ads
Intent: Steal customers through confusion
Likelihood of success: Almost always illegal; clear UDRP/ACPA violation
How Cybersquatters Profit
Understanding the profit motives helps you recognize and combat cybersquatting:
1. Ransom/Extortion
How it works:
- Register trademark domain
- Contact trademark owner
- Demand large payment to transfer domain
Typical demands: $5,000 to $500,000+ depending on brand value
Example: "I have yourcompanyname.com. I'll sell it to you for $50,000."
Legal status: This is textbook cybersquatting and almost always loses in court/UDRP
2. Parking Revenue
How it works:
- Register trademark domain
- Park domain with advertising links
- Earn money when confused visitors click ads
Typical revenue: $0.50 to $50 per day depending on traffic
Example: nike-shoes.com shows ads for competitor shoes
Legal status: Clearly bad faith under UDRP; using trademark to generate revenue
3. Affiliate Marketing
How it works:
- Register domain similar to brand
- Redirect to affiliate offers
- Earn commission on sales
Typical revenue: 5-20% commission on sales
Example: applelaptops.com redirects to Amazon with affiliate link
Legal status: Gray area; depends on whether confusion is intentional
4. Phishing and Fraud
How it works:
- Register domain very similar to bank/company
- Create fake login page
- Steal user credentials or payment info
Typical "profit": Variable; often identity theft
Example: paypa1.com (with number 1 instead of letter L)
Legal status: Highly illegal; criminal fraud, not just cybersquatting
5. Competitive Disadvantage
How it works:
- Register competitor's brand domain
- Prevent them from using it
- Force them to use less desirable domain
Typical "profit": No direct profit; competitive advantage
Example: Startup can't get idealname.com, settles for idealname.co
Legal status: Still bad faith even without direct monetary profit
Real-World Cybersquatting Examples
Famous Cases That Made History
1. Panavision International, L.P. v. Toeppen (1998)
Background: Dennis Toeppen registered panavision.com and demanded $13,000 to sell it to Panavision.
Outcome: Court ruled for Panavision; Toeppen lost domain and paid damages
Significance: One of first major cybersquatting cases; helped inspire ACPA
2. Microsoft Corporation v. Shah (2000)
Background: Ravin Shah registered numerous Microsoft-related domains including microsoftwindowsxp.com
Outcome: Microsoft won; domains transferred
Significance: Established that variations of trademarks are also cybersquatting
3. Madonna Ciccone v. Dan Parisi (2000)
Background: Dan Parisi registered madonna.com before Madonna sought it
Outcome: UDRP panel ruled for Madonna; domain transferred
Significance: Showed celebrities' names are protected under UDRP
4. Verizon California Inc. v. Navigation Catalyst Systems (2001)
Background: NSI registered thousands of typosquatting domains for major brands
Outcome: $33.15 million judgment against cybersquatter (largest at the time)
Significance: Demonstrated courts will award substantial damages
Recent Examples (2020s)
Domain investors registering COVID-19 vaccine trademarks: Multiple cases of people registering "pfizervaccine.com" and similar domains during pandemic. Most were successfully recovered through UDRP.
Cryptocurrency cybersquatting: Surge in registrations of crypto brand variations like "binance-trade.com" for phishing. Companies increasingly vigilant with enforcement.
Personal name protection: Continued cases of celebrity name cybersquatting, with most celebrities winning UDRP disputes.
The Anticybersquatting Consumer Protection Act (ACPA)
The Anticybersquatting Consumer Protection Act (ACPA) is a U.S. federal law enacted in 1999 to combat cybersquatting.
What ACPA Covers
The law makes it illegal to register, traffic in, or use a domain name that:
- Is identical or confusingly similar to a distinctive mark
- Is identical or confusingly similar to a famous mark (dilutive)
- Is a protected personal name
Requirements to Win Under ACPA
To successfully sue under ACPA, you must prove:
1. You have a valid trademark
- Federally registered trademark, OR
- Common law trademark rights through use in commerce
2. The domain is identical or confusingly similar
- Exact match or close variation
- Typical internet users would be confused
- Includes typos, additions, TLD variations
3. The defendant had bad-faith intent
- Registered specifically to profit from your trademark
- No legitimate use of the domain
- Pattern of registering others' trademarks
4. Your trademark was distinctive when registered
- The trademark was established before domain registration
- The mark identifies your goods/services
Bad Faith Factors
Courts consider these factors to determine bad faith:
Factors indicating BAD FAITH (cybersquatting):
- Trademark rights in the domain name or personal name used
- Domain is the registrant's legal name or nickname
- Prior use of domain for legitimate site
- Legitimate noncommercial or fair use
- Intent to divert for commercial gain
- Intent to tarnish trademark
- Offer to sell domain for valuable consideration
- Pattern of registering famous names
- Multiple domain registrations
- Registered trademark of another
- No actual use of domain (parked)
- Registration of false WHOIS information
- Domain acquired from another cybersquatter
Factors indicating GOOD FAITH (not cybersquatting):
- You have trademark rights in the domain
- Domain is your legal name
- Domain used for legitimate business
- Fair use (criticism, commentary, news)
- No knowledge of trademark when registered
- Prior to trademark existence
Remedies Under ACPA
If you win an ACPA lawsuit, you can obtain:
1. Injunction
- Court order to stop cybersquatter from using domain
- Transfer of domain to rightful trademark owner
2. Actual Damages
- Proven financial losses caused by cybersquatting
- Lost profits, lost customers, etc.
3. Statutory Damages
- $1,000 to $100,000 per domain (at court's discretion)
- Typically $5,000-$25,000 per domain
- Higher amounts for willful violations
4. Attorney's Fees
- In exceptional cases where defendant's conduct is egregious
ACPA Lawsuit Process
Step 1: Evaluate your case
- Do you have strong trademark rights?
- Is bad faith clear?
- Is it worth the cost?
Step 2: Attempt contact
- Send cease and desist letter
- Request domain transfer
- Document refusal
Step 3: File federal lawsuit
- File in federal district court
- Must have personal jurisdiction over defendant
- Serve defendant with complaint
Step 4: Discovery and litigation
- Exchange evidence
- Depositions
- Legal motions
Step 5: Resolution
- Settlement (common)
- Summary judgment
- Trial verdict
Timeline: 6 months to 2+ years Cost: $10,000 to $100,000+ in legal fees
UDRP: International Arbitration System
The Uniform Domain Name Dispute Resolution Policy (UDRP) is ICANN's international arbitration system for domain disputes.
What is UDRP?
UDRP is a faster, cheaper alternative to lawsuits. It's mandatory for all registrants of .com, .net, .org, and most other gTLDs. When you register a domain, you agree to submit to UDRP arbitration.
Requirements to Win Under UDRP
You must prove ALL three elements:
1. Domain is identical or confusingly similar to your trademark
- Exact match or obvious variation
- Adding common words doesn't eliminate similarity
- TLD (.com vs .net) doesn't matter
2. Respondent has no rights or legitimate interests
- Not using domain for legitimate business
- Not commonly known by the domain name
- No fair use (commentary, criticism, parody)
3. Domain registered and used in bad faith
- Registered primarily to sell to trademark owner
- Registered to prevent trademark owner from using it
- Registered to disrupt competitor's business
- Registered to attract users through confusion
Bad Faith Indicators (UDRP)
UDRP panels look for:
Evidence of bad faith:
- Attempt to sell domain to trademark owner
- Pattern of cybersquatting (multiple domains)
- No plausible legitimate use
- Knowledge of trademark when registered
- False WHOIS information
- Passive holding (not using domain at all)
- Using for parking with trademark-related ads
- Typosquatting on famous mark
Evidence of legitimate interest:
- Using for actual business before notice
- Demonstrable preparations to use
- Domain is your name or nickname
- Fair use (criticism, commentary)
- Prior to complainant's trademark rights
UDRP Remedies
UDRP offers only TWO remedies:
- Transfer domain to complainant (most common)
- Cancel domain (rare; usually only if transfer isn't wanted)
What UDRP cannot do:
- Award monetary damages
- Award attorney fees
- Impose punitive measures
- Provide injunctions
- Address multiple domain extensions separately
UDRP Process
Step 1: Prepare complaint
- Gather evidence of trademark rights
- Document bad faith
- Prove no legitimate interest
- Prepare exhibits
Step 2: File complaint
- Submit to UDRP provider (WIPO, Forum, etc.)
- Pay filing fee ($1,500 for one domain)
- Serve registrant through registrar
Step 3: Respondent answers
- Respondent has 20 days to reply
- Can provide defense evidence
- Many don't respond (complainant often wins by default)
Step 4: Panelist review
- Single panelist or three-panelist panel reviews
- No hearing; paper-only review
- Panelist considers evidence from both sides
Step 5: Decision
- Decision typically within 60-75 days of filing
- Published publicly
- If complainant wins: domain transferred within 10 days
Timeline: 2-3 months typically Cost: $1,500-$5,000 (depending on provider and panel size)
ACPA vs UDRP: Which to Choose
Both ACPA and UDRP can combat cybersquatting. Here's how to decide:
Choose UDRP When:
✓ Cost is a concern - Much cheaper ($1,500 vs $10,000-$100,000) ✓ You just want the domain - Don't care about monetary damages ✓ Speed matters - 2-3 months vs 6+ months ✓ International respondent - No need to establish personal jurisdiction ✓ Clear-cut case - Obvious bad faith, strong trademark ✓ Domain hasn't caused major damages - No significant financial harm to recover
Choose ACPA When:
✓ You want monetary compensation - Damages up to $100,000 per domain ✓ Multiple related domains - Sue for entire portfolio at once ✓ Need injunctive relief - Prevent future cybersquatting ✓ UDRP failed - Lost UDRP or want to appeal ✓ Severe damages - Significant provable financial losses ✓ U.S. jurisdiction - Defendant is in U.S. and subject to jurisdiction ✓ Additional claims - Trademark infringement, dilution, etc.
Comparison Table
| Feature | UDRP | ACPA |
|---|---|---|
| Cost | $1,500-$5,000 | $10,000-$100,000+ |
| Timeline | 2-3 months | 6-24+ months |
| Remedies | Transfer or cancel only | Transfer + damages + fees |
| Damages | None | Up to $100,000 per domain |
| Venue | Online arbitration | Federal court |
| Discovery | Limited | Full discovery process |
| Appeal | Limited (ACPA lawsuit possible) | Yes (appellate courts) |
| Jurisdiction | Any registrant | Must establish jurisdiction |
| Success rate | ~85% for complainants | Varies widely |
Hybrid Approach
Many trademark owners:
- Start with UDRP - Faster and cheaper
- If UDRP fails - Escalate to ACPA lawsuit
- For valuable domains - File both simultaneously
How to Prove Cybersquatting
Whether using UDRP or ACPA, strong evidence is critical:
Evidence of Trademark Rights
Collect:
- Federal trademark registration certificate
- Evidence of continuous use in commerce
- Dated marketing materials showing trademark use
- Sales records demonstrating commercial use
- Customer recognition surveys (for famous marks)
Tip: Federal registration makes proof much easier.
Evidence of Confusing Similarity
Demonstrate:
- Side-by-side comparison of mark and domain
- Screenshots showing similarity
- Analysis of added/removed letters
- Survey data showing consumer confusion (optional but powerful)
Evidence of Bad Faith
Gather:
- Communications offering to sell domain
- Screenshots of parked page or competitor ads
- WHOIS history showing pattern of registrations
- Timeline showing domain registered after your trademark
- Evidence registrant knew of your trademark
- Proof domain has no legitimate use
Strong evidence:
- Email saying "I have yourname.com, will sell for $X"
- Parking page showing ads for your competitors
- WHOIS showing false registration information
- Pattern of 50+ registered trademark domains
Evidence of No Legitimate Interest
Show:
- Registrant not using domain for business
- Not known by the domain name
- No demonstrable preparations to use
- Domain pointing to parked ads or blank page
- Registrant has no connection to the trademark
Documentation:
- Screenshots of current domain use (or non-use)
- Business registration searches showing no matching entity
- Archive.org (Wayback Machine) showing no historical use
Defenses Against Cybersquatting Claims
If you're accused of cybersquatting, these defenses may apply:
1. Legitimate Interest
Defense: You have rights or legitimate interest in the domain
Examples:
- Domain matches your business name
- Domain is your personal name
- Using domain for genuine website before dispute
- Made demonstrable preparations to use
Evidence needed:
- Business registration documents
- Identity documents showing name match
- Website content predating complaint
- Business plans, contracts, marketing materials
2. Fair Use
Defense: You're using trademark for criticism, commentary, or parody
Examples:
- "starbuckssucks.com" for genuine criticism
- "mcdonaldsreviews.com" for restaurant reviews
- Parody or satire of brand
Requirements:
- Must be noncommercial or truly commentary
- Cannot create confusion about endorsement
- Cannot use primarily to profit
Legislative history note: ACPA explicitly protects "comment, criticism, parody, news reporting, and similar activities."
3. Prior Rights
Defense: You had rights to the domain before complainant's trademark
Examples:
- Registered domain in 1995; complainant trademark from 2000
- Common surname that you've used in business for decades
- Generic term you've always used descriptively
Evidence needed:
- Domain registration dates
- Trademark registration dates
- Historical business use documentation
4. Generic or Descriptive Term
Defense: The domain uses generic/descriptive words, not trademark specifically
Examples:
- "books.com" (generic term, despite Amazon selling books)
- "computers.com" (descriptive term)
- "fastfood.com" (generic industry term)
Note: Harder defense if trademark is arbitrary or fanciful (like "Apple" for computers)
5. Concurrent Rights
Defense: You have separate, legitimate trademark rights
Examples:
- Two unrelated businesses with same name in different industries
- Geographically separated businesses with same name
- Legitimate licensing agreement
Evidence needed:
- Your own trademark registration
- Proof of separate business operations
- Documentation of limited geographic scope
6. Laches
Defense: Complainant waited too long to object
Examples:
- Domain registered in 2000, complaint in 2025
- Complainant knew of domain for years but didn't object
- Unreasonable delay in bringing claim
Note: More applicable in ACPA than UDRP; UDRP is not time-limited
How to Protect Your Brand
Prevention is easier than fighting cybersquatters:
1. Register Key Domains Immediately
When launching:
- Register primary .com domain
- Register primary brand variations (.net, .org)
- Register common misspellings
- Register relevant country TLDs
Timing: Register before public announcement of brand
Example: If your company is "TechFlow," register:
- techflow.com
- techflow.net
- techflow.org
- tech-flow.com
- techflo.com (common typo)
2. Trademark Your Brand
Federal registration:
- File with USPTO (United States)
- File with equivalent offices internationally
- Maintain and renew registrations
Benefits:
- Stronger legal position in UDRP and ACPA
- Constructive notice of your rights
- Damages and remedies enhancement
Timeline: Register trademark BEFORE launching if possible
3. Monitor Domain Registrations
Tools and services:
- DomainTools - Monitor new registrations
- MarkMonitor - Enterprise brand protection
- Corsearch - Trademark watching
- Brandle - Social media and domain monitoring
What to watch:
- New registrations containing your trademark
- Typosquatting variations
- Trademark + keyword combinations
- Similar names in same industry
Action: Send immediate cease and desist when cybersquatting detected
4. Use Trademark Clearinghouse (TMCH)
What it is: ICANN database of verified trademarks
Benefits:
- Notification when someone registers your mark in new gTLDs
- Sunrise period access (register before general availability)
- Priority during new TLD launches
Cost: ~$150/year per trademark
Worth it for: Valuable brands that need protection across all TLDs
5. Register Defensive Domains
Proactive registration:
- Common negative variations (brandsucks.com)
- Product name variations
- Executive names
- Common marketplace combinations
Balance: Cost vs risk - you can't register everything
6. Enforce Consistently
Important: Don't let violations slide
Why:
- Prevents establishment of "implied consent"
- Maintains trademark strength
- Deters future cybersquatters
Approach:
- Send cease and desist immediately upon discovery
- File UDRP for clear violations
- Document all enforcement actions
7. Educate Your Team
Ensure everyone knows:
- Importance of domain security
- Process for requesting new domains
- Who to notify if they discover cybersquatting
- Brand protection policies
What to Do If You're Cybersquatted
Discovered someone cybersquatting your trademark? Here's your action plan:
Step 1: Investigate and Document (Week 1)
Gather evidence:
- Screenshot the domain (current use)
- Check WHOIS registration info
- Review Wayback Machine history
- Search for pattern of similar domains
- Check if they're offering to sell
Document:
- Your trademark registration and dates
- Evidence of your commercial use
- Timeline of your trademark vs domain registration
- Any communications from registrant
Step 2: Evaluate Your Options (Week 1)
Ask:
- Is the domain identical or confusingly similar?
- Is bad faith obvious?
- What's your goal (just get domain, or damages too)?
- What's your budget for this fight?
- Is it worth it economically?
Decision point: UDRP vs ACPA vs negotiation
Step 3: Initial Outreach (Week 2)
Send cease and desist letter:
Dear [Domain Registrant],
We represent [Your Company], owner of the federally registered
trademark [TRADEMARK] (Reg. No. XXXXX).
We have discovered that you registered and are using the domain
[domain.com], which incorporates our trademark. This constitutes
cybersquatting under the Anticybersquatting Consumer Protection Act
(15 U.S.C. § 1125(d)) and violates ICANN's UDRP.
We demand that you immediately:
1. Cease use of the domain
2. Transfer the domain to us
If we do not receive confirmation within 10 days, we will pursue
all available remedies including UDRP and federal litigation.
Sincerely,
[Your Attorney]
Sometimes this works! Many cybersquatters transfer when threatened.
Step 4: UDRP Filing (Weeks 3-4)
If cease and desist fails:
- Choose UDRP provider (WIPO most popular)
- Prepare comprehensive complaint
- Gather all evidence
- File with $1,500 fee
- Serve respondent through registrar
Tip: Consider hiring attorney experienced in UDRP ($2,000-$5,000 for filing)
Step 5: Follow Through (Months 2-3)
Monitor progress:
- Respondent has 20 days to answer
- Panel reviews and decides
- Decision typically within 60-75 days
If you win:
- Domain transferred within 10 days
- Update DNS settings
- Redirect to your site
- Enable domain lock
If you lose:
- Evaluate ACPA lawsuit
- Consider appeal (limited options)
- Reassess evidence and strategy
Step 6: Alternative - Negotiated Purchase
Sometimes it's cheaper to buy:
Negotiation tips:
- Don't reveal desperate need
- Start with low offer
- Use escrow for transaction
- Get signed agreement including trademark release
- Don't pay before transfer completes
When this makes sense:
- Domain legitimately valuable beyond just your trademark
- UDRP case is uncertain
- Speed matters more than principle
- Purchase price < cost of UDRP/lawsuit
Cybersquatting vs Legitimate Domain Investing
Not all domain registration involving trademarks is cybersquatting:
Legitimate Domain Investing
Legal activities:
- Registering generic dictionary words (books.com, shoes.com)
- Registering descriptive terms before trademarks exist
- Holding domains for genuine development
- Selling domains at fair market value without targeting specific trademark owners
- Owning common surname domains matching your name
Example: Registering "pizza.com" in 1994 before any major pizza chain trademarked it = legitimate investment
Cybersquatting
Illegal activities:
- Registering trademarked brand names specifically
- Targeting trademark owners for sales
- Pattern of registering famous brands
- Using parked pages with competitor ads
- Creating confusion to profit
Example: Registering "dominospizza.com" in 2020 specifically to sell to Domino's = cybersquatting
Gray Area
Potentially problematic:
- Registering brand + keyword ("nikestore.com") without Nike's permission
- Registering after trademark exists but claiming legitimate use
- Geo-targeting domains ("starbucks-chicago.com")
Determining factor: Intent and use
Safe approach for investors:
- Avoid any trademarked brand names
- Focus on generic terms
- Don't target specific companies for sales
- Use domains for legitimate sites
- Be able to demonstrate good faith
Frequently Asked Questions
Is it illegal to own a domain with someone's trademark in it?
Not automatically. It depends on:
- Bad faith intent - Did you register specifically to profit from the trademark?
- Confusing similarity - Is it identical or very similar?
- Legitimate use - Are you using it for fair commentary, your own business, etc.?
Example of legal use: "microsoftreviews.com" for genuine product reviews Example of illegal use: "microsoft-software.com" parked with competitor ads
Can I register a domain with a trademark if I use my own name?
Yes, if it's genuinely your name and you have legitimate interest. For example, if your name is "John Apple" and you run a fruit stand, "johnapple.com" is likely legitimate despite Apple Inc.'s trademark.
However, if your name is John Apple and you're selling computers with clear intent to profit from Apple's trademark, that could still be cybersquatting.
How much does it cost to fight cybersquatting?
UDRP: $1,500-$5,000 total (filing fee + attorney if used) ACPA lawsuit: $10,000-$100,000+ (can be very expensive) Negotiated purchase: $500-$50,000+ (varies widely)
For most clear-cut cases, UDRP is the most cost-effective approach.
What happens if I win a UDRP case?
The domain is transferred to you within 10 days of the decision. However, you don't receive any monetary compensation—just the domain itself. If you want damages, you'd need to file an ACPA lawsuit instead.
Can the cybersquatter appeal a UDRP decision?
UDRP has very limited appeal options. The respondent can:
- File a lawsuit in court within 10 days (stays the transfer)
- File a mutual jurisdiction proceeding
If no lawsuit is filed within 10 days, the decision is final and the domain transfers.
What if the cybersquatter is in another country?
For UDRP: Doesn't matter—UDRP is international and works regardless of location
For ACPA: You need to establish personal jurisdiction, which can be difficult for foreign defendants. This is one reason UDRP is often preferred for international cybersquatting.
Can I get my money back if I bought a domain from a cybersquatter?
Generally no. If you purchased a cybersquatted domain in good faith:
- You become the new registrant
- Original trademark owner can file UDRP against you
- You'd lose the domain and the money you paid
- You could potentially sue the original squatter, but recovery is unlikely
Tip: Always research trademarks before buying premium domains.
Is cybersquatting a criminal offense?
Cybersquatting itself is typically a civil matter (UDRP/ACPA), not criminal. However, related activities can be criminal:
- Phishing using lookalike domains - Federal crime
- Identity theft - Criminal offense
- Wire fraud - Criminal if domain used for fraud schemes
How long do I have to file a cybersquatting complaint?
UDRP: No time limit, though excessive delay might weaken your case
ACPA: Subject to trademark statute of limitations (typically 3-4 years from when you knew or should have known of the violation)
Best practice: Act as soon as you discover cybersquatting—delay can suggest you don't care.
What if my domain name is my company name but someone claims it's their trademark?
This can happen with:
- Common business names
- Generic terms that were later trademarked
- Geographic limitations on trademarks
Your defenses:
- Prior rights (you had the domain/business first)
- Legitimate interest (genuine business use)
- Different geographic or industry markets
- Generic/descriptive term that's weak as trademark
Action: Consult an attorney if accused; don't ignore UDRP complaints.
Key Takeaways
✓ Cybersquatting is registering domains with bad-faith intent to profit from others' trademarks—it's illegal under ACPA and prohibited under UDRP
✓ Two legal remedies exist: UDRP ($1,500) and ACPA lawsuits (expensive but offers damages)—UDRP is faster and cheaper for most cases
✓ UDRP requires proving: confusing similarity, no legitimate interest, and bad faith—all three elements must be present
✓ ACPA can award up to $100,000 per domain in statutory damages—plus actual damages and attorney fees in some cases
✓ Protect your brand by registering key domains early and monitoring new registrations—prevention is far easier than enforcement
✓ Fair use and legitimate criticism are defenses—"brandsucks.com" for genuine criticism is generally protected speech
✓ Not all trademark+domain combinations are cybersquatting—intent and use determine legality
✓ Act quickly when you discover cybersquatting—send cease and desist, then file UDRP if needed
✓ Pattern of registering famous brands is strong evidence of bad faith—courts and panels view this very unfavorably
Next Steps
Protect your brand from cybersquatters:
Immediate Actions (Today):
- Search for cybersquatted domains containing your trademark
- Check WHOIS for any suspicious domains you find
- Screenshot and document any clear cybersquatting
- Register your primary domain if you haven't yet
This Week:
- Register key brand variations (.com, .net, .org, common typos)
- File trademark application if not already registered
- Set up domain monitoring for your trademark
- Send cease and desist to any clear cybersquatters
This Month:
- Evaluate UDRP filing for any active cybersquatting
- Consider Trademark Clearinghouse registration
- Create brand protection policy for your organization
- Budget for defensive registrations of key variations
Research Sources
This article was researched using current information from authoritative sources:
- Anticybersquatting Consumer Protection Act - Wikipedia
- Anti-cybersquatting Consumer Protection Act vs. UDRP - Revision Legal
- THE ANTICYBERSQUATTING CONSUMER PROTECTION ACT - Senate Report 106-140
- Cybersquatting Involving Trademarks and Service Marks & Related Lawsuits - Justia
- Cybersquatting - Digital Media Law Project
- What Is Cybersquatting - PatentPC
Business owners, trademark holders, brand managers