What it is Cybersquatting? How to prevent cybersquatting? 

What it is Cybersquatting? How to prevent cybersquatting? 

Recently, a Delhi-based software developer found himself at the center stage in India. The reason? He bought a domain named JioHotstar.com in September 2023. At that time, Jio and Hotstar faced challenges retaining their daily active viewers.  

A merger between the two companies was highly likely, given Reliance’s previous trend of mergers and acquisitions. The developer gambled on a rumor that the firms would merge and need a domain in the future. His goal was to sell off the domain JioHotstar.com to Reliance to fund his education. This led him to face a legal battle with Reliance with the giant, accusing him of cybersquatting.  

But what is cybersquatting? Let us explore! 

What is cybersquatting? 

Cybersquatting is registering a domain (hence, it is also known as domain squatting) that resembles or identical to any known/trademarked name for the purpose of profit. It could resemble or be identical to anything from the name of a famous person, a company, or a trademark.  

Some facts to consider pertaining to cybersquatting  

• There has been a 7% increase in cybersquatting cases since 2023 
• With over 6200 cases registered in 2023 for cybersquatting and over 12000 domain names being filled on WIPO, cybersquatting has seen a 68% increase since 2020  
• 80% of the disputed domains were “.com” 

Is cybersquatting illegal? 

Cybersquatting is illegal as per several laws. In the United States, if you are the owner of a trademark, you can sue a cybersquatter in a federal court, under the Anti Cybersquatting Consumer Protection Act (ACPA).  

Similarly in India, the cases of cybersquatting are resolved under the Trade Marks Act 1999. There is also an international arbitration system that is run by the Internet Corporation of Assigned Names and Numbers (ICANN) that helps a business file a complaint with an authorized service provider to resolve the dispute. 

Some other real-world examples of cybersquatting  

Walmart 

Walmart’s name is widely used by cybercriminals, with websites like walmart44.com used for phishing, adware, spyware, and malicious extensions.  

Amul  

Cybercriminals have engaged in cybersquatting by buying domains resembling India’s famous dairy brand Amul for phishing. Domains like Amuldistributor.com, Amulboard.com, Amufran.org.in, Amuldistributorindia.com were used to redirect users and engage in phishing and fraudulent activities.

Canva 

Canva filed and won a case in WIPO in 2024 against domain owners of over 174 domains that were used for cybersquatting.

What measures can companies take to combat cybersquatting? 

The following are some of the measures that you can take to prevent and respond to cybersquatting: 

• Look for the signs of cybersquatting. For example: see if are receiving customer complaints of being redirected to another website while trying to visit your website. 
• Secure your domain by looking up possible domain names that resemble your company’s name.  
• Know what you can do legally. Report the discovered cases of cybersquatting to WIPO and other authorities like ACPA or ICANN. Enforce the rights you have under trademark regulations (like sending cease and desist letters, litigation and arbitration, etc.) 
• Raise awareness on cybersquatting. Train employees to identify signs of cybersquatting and report cases of cybersquatting immediately.