Cybersquatting typically refers to the extortionate conduct of the registrant whose Domain Name represents the Trademark or Trade name of someone else which he has registered as his Domain Name with a sole purpose to sell it or offer to sell it to the true owner of the Trademark for ransom. Cybersquatters have also been referred to as ‘Cyberpirates’ and ‘Domain Name Grabbers’. Firstly, in the case of Panvansion Int’l.L.P. Vs.Toeppen, the defendant ‘Toeppen’ was referred as cyber pirates who tried to make business of Domain Names by registering various well known Trademarks with an object to sell them to the rightful Trademark owners. The term ‘Domain Name Grabber’ is generally used when defendant uses another’s Trademark as his Domain Name for carrying on his own business. Similar instances occurred in Maruti Udyog Vs Maruti InfoTech, in which the respondent made an offer to sell his Domain Name to the complainant for USD 3200; in Mahindra & Mahindra Ltd. Vs Neoplanet Solution, in which ,respondent was willing to sell his Domain Name to the complainant for USD 2000; and in Venture Foods. LLC vs. Palhivijay, in which the respondent demanded USD 75 for the transfer of Domain Name to the complainant.
The ‘Cybersquatting’ is a more serious form of ‘Domain Naming Disputes’. Typically, this is done by obtaining a Second Level Domain (SLD) name registration, within the <.com> i.e.- a top level domain (TLD) of a well known company name or brand. Many companies, including McDonalds and Coke, have undergone the experience of learning that someone else had already registered their name or mark under the <.com> TLD. Some other issues had emerged earlier in registration of names such as
The ‘Cybersquatting’ issues has its origin in the increased significance of Domain Names as the business identifier, which has come into conflict with the system of business identifier that existed before the arrival of the Internet and that are protected by the Trademarks law. The Domain Names have come in conflict with Trademarks law in many respects, they are: (a) The Trademarks law allows concurrent use of the same mark on different goods or services or on the same goods or services provided the users of the Trademark separated by distance and there is no possibility of consumer confusion. This is not possible under the current Domain Name registration system, as the concurrent use of Domain Name is not possible (b) The Domain Name registration is based on “first come first served” principle. Any person who may not be associated in any way with a well known name can register it as his Domain Name with the legitimate owner having good will in that name will be prevented from registering it as his Domain Name.
The courts have decided Cybersquatting cases, till date, making basis the principles which have been considered essential to be proved by the complainant are (a) Bad faith intent; (b) Lack of legitimate interest or right; (c) Profits on the Trademark of rightful owner; (d) Warehousing Domain Names for ransom. (e) Prevent rightful Trademark owner from carrying on business on internet by using Domain Name based on their Trademark.
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