Fighting Internet Pirates: Remedies Available for Domain Name Disputes

Cybersquatting can take on a number of different forms, all of which have dire consequences for franchisors and franchisees. For example, a cybersquatter may monitor a franchisor's domain name for the purpose of snatching it up the very moment the franchisor mistakenly allows the domain name to expire, with the intent to blackmail the franchisor into paying the cybersquatter several thousand dollars in order to transfer the domain name back into the franchisor's name. Alternatively, a cybersquatter may register a domain name that is a common misspelling of, or is otherwise confusingly similar to, a franchisor's trademark or trade name with the intent of attracting and misdirecting unsuspecting Internet users to the cybersquatter's competing Web site.

Thus, franchisors having an Internet presence should be aware of the alternatives available when finding themselves having to deal with a cybersquatter. Originally, the franchisor's only legal recourse was traditional trademark infringement litigation. But this is not particularly well suited for domain name disputes and can be a very costly and lengthy process, often taking a year or more to litigate. Today, there are two other procedures that have been specifically implemented to redress cybersquatting, namely, the Uniform Domain Name Dispute Resolution Policy (UDRP), developed by the Internet Corporation for Assigned Names and Numbers (ICANN), and the Anticybersquatting Consumer Protection Act (ACPA).