Rise in number of internet domain disputes as more ‘squatters’ move in

Legal information provider Sweet & Maxwell said that such disputes adjudicated by the World Intellectual Property Organisation hit 2,944 in the 12 months to July 2012, a six per cent increase from 2,775 in July 2011.

The disputes occur when companies find a competitor or ‘squatter’ using their trademark in a website name. This is especially common where household-names are concerned.

It is common for the squatters to register virtually-identical domains, in an attempt to attract online traffic, or sell the domain back to the rightful owner.

John Olsen, a partner at law firm Edwards Wildman, and editor of Domain Names: Global Practice and Procedure, published by Sweet & Maxwell, a Thomson Reuters company, said the main reason for the increase was that big brands were gaining more income from online sales.

“As online retail becomes more profitable, household name brands are taking the defence of their domain names much more seriously,” he said.

“They are doing all that they can to protect their revenue streams – domain names are the key to the door of online retail.”