Internet businesses have led to an entirely new type and set of laws called internet law. One of the major problems that companies are facing is something called cybersquatting.
Cybersquatting is where a company uses a domain name in bad faith with intent to make money on someone else’s trademark or copyright. After this happens the cybersquatter tries to sell the domain name back to the company whose copyright has been infringed on for an unfair price on an illegal action.
This happens all the time on the internet and there have had to be laws written to stop this. Cybersquatting is an intellectual property issue.
For example, if someone tried to cybersquat on the website created by Steven Barbarich, choosehottubsdirect.com, they might use a domain very similar to his and then attempt to get him to buy the unlawful domain just so customers will stop being directed to the unofficial site. This becomes a problem because it can tarnish the reputation of a company. Like Barbarich prides his site on being one that has excellent customer service, but if customers are going to a phony site they may not get that service and therefore think it is related to the real site.
An actual case was People for The Ethical Treatment of Animals v. Doughney. The case involved Doughney registering peta.org for a fake organization called “People Eating Tasty Animals.” That site contained links to other sites that sold leather goods or meats. At the end of the page was the actual link to the PETA organization. PETA won the case, because the courts said that there was easily going to be confusion if people went to the website. And the Fourth Circuit Court also agreed with PETA.
So the bottom line is that you need to be careful of the internet domains you put forward, and never misrepresent yourself online.
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