They say every art form is generally ‘inspired’ by something or someone. And while that may be acceptable in the creative world, the rules are a bit different in the tech world.

If someone registers a domain name similar to your website, guess what? You’ve been domain-squatted!

Domain squatting is an illegal act that can have serious implications for your business. What’s worse, domain squatting is way more common than you think. Read on to learn more about it and how your business can prevent it.

What Is Domain Squatting

Domain squatting, also known as cybersquatting, occurs when an individual or organization registers or uses a domain name with bad faith intent to profit from a trademark belonging to someone else.

The squatter then offers to sell the domain to the rightful trademark owner at an inflated price, exploiting the legal owner’s need for the domain.

You may liken it to “domaining,” but these parallel terms have different intentions. With domaining, you buy valuable domain names from numerous buyers based on the latest trends, customer interest, and more. You then auction the domain names and sell them to the highest bidder or via a domain broker.

On the other hand, domain squatting is when someone registers an internet domain name strikingly similar to an existing brand, trademark, or even a popular website name for malicious purposes.

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Why Cybercriminals Engage in Domain Squatting

So, the real question becomes: “Why would a domain name squatter engage in domain squatting?” What’s in it for them?

Here are a few possible reasons (and they all mostly boil down to profit):

  • A domain name squatter might buy a generic top-level domain to:
    • Block you from registering it
    • Profit from reselling it
    • Profit from selling ads
  • These squatters may buy the domain name of your small business to ask your customers for a higher premium on products/services.
  • They may misspell your domain name so that customers land up on their website (instead of yours) and can profit from ads due to higher traffic.
  • They may look up domain names from smaller businesses that have not yet registered for the legal name and buy it at one-fourth the price. In this case, instead of rebranding all your marketing collaterals and brand identity assets, the website owner might choose to pay the domain name squatter the price asked instead of undergoing a heavy rebranding exercise.
  • They may purchase recently expired domain names to divert organic traffic to their website and earn from reselling or ads.

Domain squatting impacts businesses of all sizes, from small local businesses to large corporations. It can lead to lost business opportunities, brand confusion, and costly legal battles to reclaim the domain.

7 Tips for Preventing Domain Squatting

Avoiding cybersquatting requires proactive and strategic actions to protect your brand and intellectual property in the digital space. Here are seven tips to help you avoid losing your domain name in the future:

1. Register Your Trademark

Registering your business name or product names as trademarks provides legal leverage against cybersquatters. A registered trademark can significantly strengthen your case should you need to take legal action to recover a domain.

2. Claim Variants of Your Domains

Purchase not only your primary domain name but also common variations. For instance, if you have a domain name called funkyfrisbees.com, you can acquire the following variants:

  • Misspellings (e.g. funkyfrisbeee.com)
  • Hyphenated versions (e.g. funky-frisbee.com)
  • Different top-level domains (TLDs) such as .net, .org, .biz, .info, in addition to the .com (e.g. funkyfrisbee.biz)
  • Singular and plural forms of your domain (e.g. funkyfrisbee.com)
  • Domain names containing key products or services (e.g. frisbee.com or flyingdisc.com)

Doing so prevents domain squatters from registering these variants themselves, which may lead to serious complications in the long run.

3. Don’t Forget Your Social Media Handles

Like domain names, social media handles are important for your brand’s online presence. Secure handles on major social media platforms that match your domain and trademarks to prevent others from using them.

4. Act Quickly

The sooner you register your desired domain names and trademarks, the less likely it is that a cybersquatter will get to them first. If you’re launching new products or brands, include the domain registration as part of your launch process.

5. Partner with a Trustworthy Registrar

Choose a reputable domain registrar to register and host your domains. Research and read reviews to ensure they have a good track record for customer support and reliable service.

Periodically check the status and details of your domains through your registrar’s control panel. Look for any unusual changes, such as alterations to DNS settings or modifications to the contact information. You may consider using a domain monitoring service, which alerts you to registrations of domain names similar to your trademarks. Remember that catching issues early on can prevent domain loss.

6. Renew Domains Well in Advance

Don’t wait until the last minute to renew your domains. Ensure to renew them well before their expiration date to avoid potential complications or delays, especially if there are any payment issues or technical glitches. You may also set up auto-renewal on your domain account to save you the hassle.

7. Use Legal and Administrative Solutions

If you find that someone has registered a domain name infringing on your trademark, you have several options:

  • Cease and Desist Letters – A formal letter demanding the squatter stop using the domain and negotiate its transfer
  • Uniform Domain-Name Dispute-Resolution Policy (UDRP) – An administrative process provided by ICANN that allows trademark owners to challenge domain registrations in bad faith
  • Anticybersquatting Consumer Protection Act (ACPA) – In the United States, this law allows trademark owners to sue for domain squatting involving their trademark

By implementing these strategies, you can significantly reduce the risk of cybersquatting and protect your brand’s online presence. Stay updated on changes in domain registration policies, trademark law, and new gTLDs being released. This can help you better protect your brand and anticipate potential threats.

Partner with Crazy Domains

There’s a fine line between legally buying, registering, selling domain names, and engaging in domain squatting. The line is drawn by your intent. Don’t wait until domain squatters exploit your business by applying the above tips.

Protect your business by teaming up with a reliable domain registrar like Crazy Domains. We help you register your domain name and any of its variations and offer Domain Privacy for that ultimate protection. Invest in safeguarding your brand today!