Lawyers

  • Somnath De

    Sr. Associate

    B.A.LLB (Hons.), DCL, C.C.I,C.F.I

    somnath@astrealegal.com

    Practices Cyber Laws,Internet Transaction, E-Commerce, Software and Computer Rights, Domain Dispute, Identity Theft,

  • Urwi Keche

    Partner

    BA. in Law, LL.B, LL.M (Administrative and Constitutional Law)

    urwikeche@astrealegal.com

    Practices Property due Diligence, Trade Mark, Copy Right, Legal Drafting, Medico Legal Matters, Arbitration

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When Cybersquatting Sparks Domain Conflicts

               Imagine this: you’ve spent years nurturing your brand, pouring resources into marketing, building customer loyalty, and carving out your space in the market. One morning, out of curiosity, you type your brand name followed by “.in” or “.com” into a browser. But instead of landing on your official website, you’re greeted with a parked page cluttered with random ads. Worse still, the domain redirects to a competitor’s website or, in the most alarming scenario, a fraudulent page designed to trick your customers.

Suddenly, your reputation is at risk, revenue could be diverted, and your online identity, the domain representing your business, has been hijacked. This isn’t a fictional scenario; it’s happening to businesses worldwide. It has a name, cybersquatting, a silent yet costly practice that affects companies big and small.

What exactly is Cybersquatting?

Cybersquatting is like a land grab in the digital world. Just as opportunists once rushed to claim valuable plots of land, cyber squatters rush to register internet domains that carry brand value, often trademarks, well-known company names, or even celebrity identities.

The idea is simple: register a name before the rightful owner does, and then demand money, divert traffic, or exploit the confusion. While the term sounds almost playful, the damage it can cause is anything but.

What is the Issue?

Domain disputes arise when someone registers or uses a domain name that is identical or confusingly similar to a brand, trademark, or company name, often without authorization. This practice allows opportunists to exploit a brand’s reputation for personal gain either by selling the domain at a premium, diverting traffic, or misleading customers. In India, the rapid growth of digital businesses and affordable domain registrations has made this a pressing problem.

How it Impact on Your Brand

Losing control of a domain can have serious consequences:

  • Revenue loss: Customers may land on competitor sites or fraudulent pages.
  • Reputation damage: Customer trust is affected if the domain is misused.
  • Business disruption: Online operations, marketing campaigns, and product launches may be impacted.
  • Legal risks: Resolving disputes can involve lengthy and costly proceedings.

With thousands of start-ups launching every year and over 800 million internet users, the stakes are high for both established and emerging businesses. Even global brands entering India often find their desired .in or .co.in domain already taken.

How Cyber Squatters Work

Cyber squatters are opportunists who exploit the value of brand names online. Their goal is simple: take advantage of your brand’s reputation or confuse your customers for personal gain. They use several common tactics:

  1. Classic Domain Hoarding – Registering a brand’s exact name to sell it back later at an inflated price.
  2. Typosquatting – Buying domains with misspellings of your brand (for example, amaz0n.com instead of amazon.com) to divert traffic from your official site.
  3. Expiry Hunting – Waiting for a domain to expire and quickly grabbing it before the original owner renews.
  4. Global or Local Hijacking – Registering country-specific versions of popular international brands (like .in or .co.in) to block market entry.
  5. Web3 Opportunists – Snapping up newer blockchain-based domains (*.eth, *.crypto) before legal frameworks catch up.

Legal Remedies – How Brands Can Win Their Names Back

Cybersquatting isn’t the end of the road. Businesses have legal mechanisms to reclaim their domains:

  1. UDRP (Uniform Domain Name Dispute Resolution Policy) – Managed by WIPO, it covers global domains like .com, .org, and .net. Cases are usually resolved in 2–3 months, making it a fast and cost-effective option for international domains.
  2. INDRP (Indian Domain Name Dispute Resolution Policy) – Overseen by NIXI, this applies to .in and .co.in domains. Decisions are typically delivered in 60–90 days, and Indian courts recognize domain names as equivalent to trademarks.
  3. Court Actions – For serious cases involving fraud, phishing, or reputational harm, courts can provide stronger remedies like injunctions, damages, or domain transfers, though proceedings are longer and costlier.
  4. Negotiation and Buyback – As a last resort, businesses may negotiate with squatters to buy back domains, useful when time is critical, such as during product launches.

Prevention is the Real Cure

While remedies exist, prevention is always cheaper and quicker. Here’s how businesses can safeguard themselves:

  • Register domains proactively in all major extensions (.com, .in, .co, .net).
  • Secure common misspellings and variations.
  • Monitor domain registrations through brand watch services.
  • Renew domains well before expiry.
  • Register trademarks early to strengthen your claim.
  • A little foresight today can save massive costs and stress tomorrow.

Case Study

#The Fireball Whisky Lesson

Sazerac Brands, LLC, famous for its FIREBALL whisky, had been using the name worldwide since 1977 and in India since 2013. One day, it discovered that fireball.in was taken not by them, but by someone else who wasn’t selling whisky at all. The domain just sat idle, pointing to a parked page.

When challenged, the domain holder argued that “fireball” was just a generic word. But the Tribunal wasn’t convinced. With Sazerac’s strong trademark rights and long-standing use, the excuse didn’t stand. The Tribunal ruled that the respondent had no legitimate interest, and the registration was in bad faith.

The Tribunal ordered the transfer of the disputed domain to the Complainant. This case shows two things: (1) squatters often try creative excuses, but (2) the system favors genuine trademark owners if they act.

In today’s digital-first world, your domain isn’t just an address, it’s your brand’s identity card. Losing it to a cyber-squatter is like handing over your shop keys to a stranger. The good news is, with awareness, proactive steps, and timely legal action, you can protect your brand from this silent digital heist. The bad news? If you wait too long, the cost of getting it back could be far higher than you imagine. Every click that goes to a fake or parked site is a customer lost, and every day of inaction strengthens the squatter’s grip. Taking control early is the difference between a minor setback and a lasting reputational wound.

Contributed by :  Ms. Ishika Preetam / Ms. Urwi Keche

Astrea Legal Associates LLP

www.astrealegal.com

Note: This publication is provided for general information and does not constitute any legal opinion.This publication is protected by copyright. © 2025,Astrea Legal Associates LLP