You search for your business name online and find it pointing to a website you do not control. The domain is your trademark plus a hyphen, a misspelling, or a different top-level domain. The site may be selling counterfeit goods, running ads, posting complaints, or demanding money to sell the name back to you. That is cybersquatting — and U.S. trademark law gives you tools to fight it.
What cybersquatting actually is
Cybersquatting is registering, trafficking in, or using a domain name with a bad-faith intent to profit from someone else's trademark. The classic example is buying yourbrand.com or your-brand.net and offering it to you for an inflated price. But cybersquatting also includes registering a confusingly similar domain to divert customers, tarnish a brand, or exploit typo traffic.
The federal statute that addresses it is the Anticybersquatting Consumer Protection Act (ACPA), 15 U.S.C. § 1125(d). It creates a civil cause of action against anyone who registers or uses a domain name that is identical or confusingly similar to a distinctive or famous trademark, with a bad-faith intent to profit.
When a domain name violates your trademark
Not every domain that contains your mark is cybersquatting. A competitor may have a legitimate right to use a similar term. A criticism site may be protected speech. Courts look at the registrant's intent and the likelihood of confusion.
Strong cybersquatting cases usually involve one or more of these facts:
- The domain is identical or nearly identical to your trademark, with only a minor variation such as a plural, hyphen, or misspelling.
- The registrant has no legitimate business purpose for the name and is using it to demand payment.
- The site diverts customers to competitors, counterfeit sellers, or paid advertising.
- The registrant hides behind privacy services and registers many other brand names.
- The domain was registered after you acquired trademark rights and began using the mark publicly.
If the site is also selling fake products or misrepresenting an affiliation with you, the conduct may violate the Lanham Act's traditional trademark-infringement and false-endorsement provisions as well.
Two ways to fight back: the ACPA lawsuit and the UDRP proceeding
Trademark owners generally have two paths. They can be used separately or together.
1. ACPA lawsuit in federal court
An ACPA suit is filed in U.S. federal court. To win, you must show that:
- Your trademark was distinctive when the domain was registered;
- The domain is identical or confusingly similar to your mark, or dilutes a famous mark; and
- The registrant had a bad-faith intent to profit.
Courts weigh nine statutory bad-faith factors, including the registrant's intellectual-property rights in the name, the extent of the similarity, whether the registrant offered to sell the domain for gain, the registrant's pattern of registering marks, and whether the domain is being used to divert consumers.
Remedies include statutory damages of $1,000 to $100,000 per domain, injunctive relief, transfer of the domain, and attorney's fees in exceptional cases. In egregious cases, damages can be much higher.
2. UDRP arbitration
The Uniform Domain-Name Dispute-Resolution Policy (UDRP) is an administrative process run through ICANN-approved providers such as the WIPO Arbitration and Mediation Center. It is generally faster and cheaper than federal court, and it does not require personal jurisdiction over the registrant.
To prevail under the UDRP, you must prove three things:
- The domain is identical or confusingly similar to your trademark;
- The registrant has no rights or legitimate interests in the domain; and
- The domain was registered and is being used in bad faith.
The typical UDRP remedy is transfer of the domain to you. UDRP panels cannot award money damages, so if your primary goal is to recover lost profits or statutory damages, the ACPA is usually the better fit.
What you can recover
Depending on the path you choose, available relief includes:
- Transfer of the domain. Both UDRP and ACPA courts can order the domain transferred to the trademark owner.
- Statutory damages. The ACPA allows $1,000 to $100,000 per domain as an alternative to proving actual damages.
- Actual damages and profits. Under traditional Lanham Act claims, you can seek the defendant's profits, your actual losses, and the costs of the action.
- Injunctive relief. A court can bar the registrant from continuing to use the domain or registering similar ones.
- Attorney's fees. Available in exceptional cases under both the ACPA and the Lanham Act.
Steps to take right now
- Screenshot everything. Capture the domain, the website, WHOIS records, and any emails offering to sell the name. Registrants sometimes change or hide information once they are challenged.
- Check your trademark rights. A federal registration strengthens your case but is not always required. Common-law trademark rights can support an ACPA or UDRP claim if you can prove distinctiveness and priority.
- Send a demand letter. A well-supported cease-and-desist letter can prompt a transfer without litigation. Be careful not to make threats you cannot back up, and avoid admissions that could hurt a later case.
- Consider a UDRP complaint. If speed and cost matter more than money damages, UDRP is often the fastest route to recover the domain.
- File an ACPA lawsuit if damages matter. When the registrant has profited from the domain or the conduct is part of a larger pattern, federal court may be the better forum.
FAQ
Do I need a registered trademark to stop a cybersquatter?
No, but it helps. The ACPA protects distinctive and famous marks, including marks protected under common law. A federal registration gives you stronger evidence of ownership and nationwide rights.
What is typosquatting?
Typosquatting is a form of cybersquatting where the registrant uses common misspellings of your domain or brand — such as gooogle.com instead of google.com — to capture traffic from user errors. It is treated the same way as other cybersquatting under the ACPA and UDRP.
Can I sue the domain registrar?
Generally no. Registrars have statutory immunity under the ACPA for registering domains at the request of others, provided they follow UDRP decisions and court orders. Your claim is against the registrant.
How long does a UDRP case take?
Most UDRP proceedings are decided within two to four months from filing. ACPA litigation typically takes longer but can be expedited with a preliminary-injunction motion if the registrant is actively causing harm.
What if the registrant is anonymous or overseas?
UDRP works well against anonymous and foreign registrants because it is tied to the domain registration agreement. ACPA suits can also reach foreign registrants in some cases, particularly when they target U.S. consumers or use U.S.-based registrars or servers.
Is a gripe site or criticism site cybersquatting?
Not necessarily. A site that criticizes your business may be protected by the First Amendment, especially if the domain clearly signals non-affiliation and the registrant is not trying to sell the name back to you. Courts distinguish between legitimate commentary and bad-faith profiteering.
How Javitch Law Office can help
We represent businesses, creators, and trademark owners in domain-name disputes, copyright and intellectual-property threats, and business litigation. Whether you need a UDRP complaint, an ACPA lawsuit, or a strategy letter to recover a domain, we can evaluate your options and move quickly.
Contact us for a free case review and we will tell you whether the domain can be recovered and what it will take.
Related reading
- Is Someone Threatening You With a Copyright Lawsuit? What to Do First
- Copyright Threat Defense
- Business Litigation
- Firm Victory: The Zapruder Film Copyright Case
This article is general information, not legal advice, and does not create an attorney-client relationship. Attorney advertising.