Cybersquatting and Typosquatting
What Cybersquatting Is
Cybersquatting is registering or using a domain name that matches another party's trademark, in bad faith, with the aim of profiting from that trademark. The name is often offered back to the trademark owner for a high price, used to divert customers, or held to stop the owner from using it.
Bad faith is the key term. It refers to intent, such as trying to sell a name to the brand at an inflated price. Simply owning a name that happens to resemble a brand is not enough by itself. Owners can reduce their exposure through defensive domain registration.
Typosquatting and Other Forms
Typosquatting is a type of cybersquatting that relies on common typing errors. A registrant might register a name missing one letter, with two letters swapped, or with a different extension, hoping visitors will reach it by mistake. Some typosquat domains show ads, fake login pages or misleading offers.
Other forms include adding extra words to a brand, such as support or login, and using a near-identical name for a copycat business. Look-alike characters can also be used in names, a technique linked to punycode. The aim is usually the same: to catch customers who meant to visit the real brand.
Example: A Bank and a Look-Alike Name
A fictional regional bank finds a domain that adds an extra letter to its name and offers loans. The site copies the bank's colors and logo style. The bank cannot be sure the site is hostile without evidence, so it records how the site is used, the registrant's other registrations and any offers to sell the name. It then decides whether a formal complaint is justified.
Frequently asked questions
Is typosquatting always illegal?
Not automatically. Typosquatting is treated as cybersquatting when the registrant acts in bad faith, for example to profit from confusion with a trademark. A typo-like name held innocently, or used for unrelated purposes, can be treated differently. Outcomes depend on intent, use and the strength of the trademark.
How can a business find out if someone is cybersquatting?
Look for registrations of close variants of your name, search for sites that use your brand, and set up monitoring that tracks new registrations. Check the registration data for the owner, although privacy services may hide personal details. Keep dated screenshots as evidence.
Do I need a trademark to challenge a cybersquatter?
In most cases, yes, or at least strong evidence of rights in a name. Procedures such as UDRP focus on trademarks, though some rules also recognize unregistered rights. Legal advice is worth seeking, because requirements vary by country and by procedure.