Registration of a Domain Name

Usually, it is presumed that a trademark owner shall possess the domain name, which contains his trademark in it. The consumers go by that belief while browsing the Internet, looking for information or even while purchasing some product online. If the trademark owner has failed to own the domain name with his trademark, he is bound to expose himself to innumerable legal and economic complications, which is bound to work against the trademark owner.

Trademark owner who fail to own their domain names face brimming legal issues are summarized under the following heads:

Tarnishment of the Brand

Any Domain Name reflects the identity of a brand so contained in it. For example, apple.com reflects the brand image and brand identity of the Apple Computers. Now, a cybersquatter may register a domain name with the word ‘apple’ in it merely to make it sound related to Apple Computers and also claim to be selling authentic Apple Products. In such a scenario, a faithful purchaser may not think twice before transacting with that website merely for the domain name. This would mean not only losing the faith reposed by one faithful consumer, but also that the brand image of the company is being tarnished.

A domain name with a prominent trademark sounds familiar and attractive. Any faithful consumer unaware of this dubiousness may transact with the website only trusting brand in the domain name to be a known one. It is important for the trademark owner to retrieve back such a domain names thereby not losing faithful consumers.

Cyber-squatter feels comfortable to attack a proven target than hunt for a new one.

A trademark owner who notices cyberquatting activity with his trademark has two options. The first option is to approach a domain name lawyer and take action for transfer of the domain names to his name, thereby enforcing his legal right.

The second option is to satisfy the demands of an unscrupulous cyber-squatter by purchasing the domain name from the cyber-squatter for several multiples of the original cost.

A trademark owner who once succumbs to such illegal demands of a cyber-squatter would find himself being exposed to more such domain name theft. The reason behind this is that the cyber-squatter would feel comfortable to attack a proven target than hunt for a new one. Once a trademark owner adheres to the demands of the unscrupulous cyber squatter, the cyber squatter would not only benefits from one such transaction but he would actually be motivated to attack the same trademark owner again.

It is always recommended that the trademark owner chooses the legal mechanism provided under the Uniform Dispute Resolution Policy (UDRP) or .IN Dispute Resolution Policy (INDRP) at least to dampen the spirits of an unscrupulous cyber squatter. Purchase of a domain name from a cyber-squatter equates purchasing a property for which you are already the owner.

Impersonation

A cyber squatter might not stop with merely illegally usurping your domain name.  Cyber squatters have been profiteering regularly by building a website similar to the original trademark owners and by making representations that the site is owned by the trademark owner.

Dilution of trademark

The cyber squatters who have set up websites misrepresent that they are the original website of the brand and start selling cheap quality goods online which has no connection with the original trademark holder.  Such goods tarnish the brand image and cause an incurable effect in the minds of the faithful consumer.

E-Commerce Frauds - Online Fraudsters capitalize the goodwill of the original brand

Cyber squatter build websites as though belonging to the original TM Owner.  The website promises certain services/products from the trademark owner at a cost.  A faithful consumer of a brand purchases the product/service from the website, believing that the website is actually owned by brand projected in the website.

A communication is sent from the website confirming the receipt of the funds and things seem normal.  After a few days of waiting, the consumer receives no response from the website and also does not receive the promised product.  After a good amount of research, the defrauded consumer would finally question the integrity of the trademark owner. The innocent Trade mark owner who has no idea about any of the happenings and plead complete ignorance.

However, the trademark owner in most of the cases would be required to explain his negligence in allowing a domain name to function in his name. Such disputes would turn complex and in many of the cases the trademark owner would be required to compensate the innocent purchaser. This not only amounts to dilution of the trademark but also results in fraud against a bonafide trademark holder and a faithful consumer. Also, the company is required to bear the brunt and compensate the loss for the consumer.

Domain Names not renewed are easy targets

Cybersquatters eye domain name that were forgetfully not renewed by the trademark owner. This would compel the trademark owner to purchase the domain name from the cybersquatter immediately in order to stop losing business. Therefore, it is always recommended that the trademarks be purchased for a longer period.

The duty of a trademark owner does not limit with being a good provider of services/good. The duty goes beyond it, to an extent where the trademark owner is required to protect his trademark religiously by taking all such legal measures possible. A Brand is an intellectual property whose value increases when put to greater use. Any business cannot afford to lose such an asset recklessly in the hands of cyber-squatters. A trademark owner who fights against cyber squatting does not merely fights for trademark name, but for better brand image and market share on the e-commerce.

A Domain name theft/cyber squatting leaves behind a distorted image of the brand attached to the domain name.  The trademark owner is exposing himself to serious risks where not only the goodwill of the brand is tarnished, but also legal battles need to be faced by the Trademark holder. In every case, it is not an option for the trademark owner to own his domain, but is a duty bounded upon him for a peaceful business. It is lest that can be expected out of serious business, to at least own the domain name, which is attached to the trademark owned by him so that the sincere consumers are not conned for no wrong of theirs.