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Cybersquatting involves a party registering an existing brand name (or something confusingly similar) as a domain name with the intention of selling it on at a profit, typically to the relevant brand owner. In the late 1990s, holding businesses and individuals to ransom generated vast profits for cybersquatters but now brand owners are generally more aware and quicker to register relevant domain names. In addition, inexpensive and simple complaint procedures can be used against cybersquatters in order to obtain a transfer of the domain name to its 'rightful' owner.
Some well-known brands have a policy for tackling cybersquatting which helps to ensure resources are allocated in the most appropriate way. For example, a policy could:
prioritise domain names that link to websites likely to cause brand damage and consumer confusion and potentially divert customers
focus on certain jurisdictions
create a system for dealing with less worrying activities, eg monitor the websites in question and track changes of ownership
set a budget for purchasing domain names and dealing with complaints
If the domain name does not connect to a legitimate website there may be grounds to suspect the registrant is a cybersquatter. If the domain name links to a holding page stating the site is for sale or comprises a list of links to
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