Following the commercial success of their concept, network leaders generally have a well-known trademark and a website that uses this trademark or another distinctive sign. This success can attract cybersquatters who then wish to reserve domain names similar to that of the network leader, with the intention of unduly profiting from the reputation of this sign.
The concept of cybersquatting and the associated risks
Cybersquatting refers to the abusive registration of a domain name that is identical or similar to a trademark or distinctive sign, with the intention of taking unfair advantage of the reputation of that trademark or sign.
Cybersquatters may reserve domain names for the purpose of:
– resell them at a high price to the legitimate owner,
– divert customers away from the legitimate owner by redirecting them to a third-party site or a fake e-commerce site,
– or damage the image of the network by associating the domain name with harmful content (e.g., offensive or defamatory content, etc.).
Reserving disputed domain names also enables phishing campaigns to be carried out, with the aim of usurping the identity of the company that owns the trademark/distinctive sign.
The consequences for companies are numerous: economic risks such as loss of revenue due to customer diversion, communication costs, as well as serious and irreparable damage to the brand image and the trust of customers, partners, or investors.
How can this be prevented?
It is recommended to mandate specialized IP Lawfirm to regularly monitor new domain name registrations that are similar to distinctive signs.
In addition, when a disputed domain name is identified, it is recommended that a formal notice be sent to the registrant requesting the transfer of the domain name.
If the formal notice proves ineffective, companies have several types of recourse available to them, including:
– an out-of-court settlement procedure (for « .fr » domain names): the Uniform Domain Name Dispute Resolution Policy (UDRP) procedure with WIPO or the Syreli procedure with the Association Française pour le Nommage Internet en Coopération (AFNIC) for the purpose of transferring or deleting the name, and
– legal action based on trademark infringement, or unfair competition, depending on the rights held over the protected sign, for the purpose of transferring or deleting the name and obtaining damages.
To find out about your rights and defend your online reputation, please do not hesitate to contact us.