Securing a domain name registration is often one of the first things a new business owner will do for their business. This is because a website is usually the main point of contact with consumers and sales for many businesses. The first step in securing a domain registration is to check whether your ideal or intended domain name is available. Sometimes, the domain name that you want is not available because someone else has already registered it. Often, this is just a case of bad luck. Other times, it might be the case that an individual or business is ‘domain name squatting’ or ‘cybersquatting’. This article will explore what domain name squatting is and what you can do if you encounter this in Australia.
What is Domain Name Squatting?
Domain name squatting (also known as cybersquatting) is where another individual or business registers a domain name in bad faith. Accordingly, they do not intend to hold onto it or doing so is irrelevant and unnecessary to their business. For example, someone may register a domain name in bad faith to block another business from using that domain name. Alternatively, they may hold onto the domain name because they know another individual or business will need it. Thus, the other company will pay money to secure that domain name for its own business.
However, it is not always in bad faith. There may be situations where someone coincidentally registered the domain name that you wish to register. It is important to determine whether someone is intentionally or accidentally cybersquatting. Depending on which scenario, you can take varying actions.
Actions Against Domain Name Squatting
Suppose you come across someone cybersquatting a domain name you would like to use for your business in Australia. You may seek legal advice from a lawyer on the best steps to take in your situation.
Generally, when it comes to domain name disputes, you could resolve the issue formally and administratively by lodging a complaint with .au Domain Administration (auDA). auDA is the regulatory body that deals with domain name issues, complaints, and disputes in Australia. Complaining through auDA is an alternative route to litigation, which can be expensive and time-consuming.
Any person or entity may initiate an administrative proceeding by submitting a complaint to auDA, so long as the complaint follows the relevant auDA policies and rules.
Parties can decide to initially participate in an arbitration, where a representative of auDA is present. The representative acts as an independent third party to assist the parties to reach a resolution.
If the parties cannot resolve the dispute, the party with the complaint can lodge a formal complaint and initiate administrative proceedings. A ground for initiating administrative proceedings is if someone has registered a domain name or subsequently used that domain name in bad faith.
An example of this is if there are circumstances indicating the domain name has been acquired or registered primarily for the purpose of selling, renting, or otherwise transferring the domain name registration to another person for valuable consideration over the documented out-of-pocket costs directly related to the domain name.
Knowing whether you have a strong claim and navigating the complaint process can be challenging. Thus, you should discuss your situation with a lawyer and seek assistance with the drafting process. If your complaint is not drafted properly or does not clearly indicate the grounds you rely upon, it may be rejected.
Continue reading this article below the formPerforming Searches and Ensuring Brand Cohesion
When you have established your brand, you want to make sure that your brand is cohesive across different platforms so consumers can readily identify your business. If your website domain name is different to your Instagram handle, which is different to the main brand you trade under, consumers can get confused. Furthermore, this may take business away from you. Slight differences may be manageable. However, if the words are different or there are additional elements due to unavailability, this may impact how consumers remember your brand.
Ideally, you should strive for brand continuity and cohesion across all platforms in which you intend to promote your business.
For example, suppose you own a retail clothing shop that has a physical store but also sells products online. In addition, you have active Instagram and Facebook accounts. Ideally, your handles should all be the same or very similar.
If your physical shop was called BLUE GIRL CLOTHING, but your domain name registration was for “bluelady.com.au” and your Instagram and Facebook handles are for “bluegirlstudios”, it may be difficult for consumers to readily identify your business and your offerings on those platforms.
As such, it is essential to perform searches for availability and take the necessary steps to secure domain registrations and other online handles to ensure brand cohesion across all platforms and avoid consumer confusion or uncertainty.
Your business’ brand represents your values, identity and reputation. Learn how to create a successful brand and protect it.
Key Takeaways
If you find that someone is purposefully cybersquatting on a domain name that you wish to use for your business, you may like to consider engaging in negotiations or arbitration to reach a resolution with the other party or lodge a formal complaint with auDA. Alternatively, if you believe someone is accidentally cybersquatting, you consider a less aggressive approach and contact the owner to reach a resolution.
If you need help with securing a domain name, our experienced IP lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Domain name squatting, also known as cybersquatting, is where another individual or business has registered a domain name they do not intend to use. Still, they register or acquire the name in bad faith to resell it for a profit.
If the other party intentionally cybersquatting in bad faith, you could consider complaining on bad faith grounds to the .au Domain Administration body.
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