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Security & Privacy

Cybersquatting: What It Is and How to Fight It (2025 Guide)

Learn what cybersquatting is, how trademark squatters profit from brands, and your legal options under UDRP and ACPA. Complete guide to protecting your brand from domain squatters.

12 min
Published 2025-03-25
Updated 2025-11-15
By DomainDetails Team

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?

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.

Under U.S. law (Anticybersquatting Consumer Protection Act of 1999), cybersquatting occurs when someone:

  1. 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
  2. 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:

  1. Is identical or confusingly similar to a distinctive mark
  2. Is identical or confusingly similar to a famous mark (dilutive)
  3. 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

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:

  1. Transfer domain to complainant (most common)
  2. 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:

  1. Start with UDRP - Faster and cheaper
  2. If UDRP fails - Escalate to ACPA lawsuit
  3. 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):

  1. Search for cybersquatted domains containing your trademark
  2. Check WHOIS for any suspicious domains you find
  3. Screenshot and document any clear cybersquatting
  4. Register your primary domain if you haven't yet

This Week:

  1. Register key brand variations (.com, .net, .org, common typos)
  2. File trademark application if not already registered
  3. Set up domain monitoring for your trademark
  4. Send cease and desist to any clear cybersquatters

This Month:

  1. Evaluate UDRP filing for any active cybersquatting
  2. Consider Trademark Clearinghouse registration
  3. Create brand protection policy for your organization
  4. Budget for defensive registrations of key variations

Research Sources

This article was researched using current information from authoritative sources:

Business owners, trademark holders, brand managers