Cybersquatting: When Someone Registers Your Brand Name

What is Cybersquatting?

Cybersquatting is the practice of registering domain names that incorporate someone else’s trademark or brand name, typically with the intent to profit. If your Shopify store is called “Sunrise Coffee” and someone registers sunrisecoffee.com before you do—hoping to sell it to you at a premium—that’s cybersquatting.

Cybersquatting vs. Typosquatting

While related, these attacks differ:

Cybersquatting: Registers your exact brand name in a different TLD or before you do

• Example: yourbrand.com when you only own yourbrand.shop

Typosquatting: Registers misspellings of your brand

• Example: yourbnad.com (typo of yourbrand)

Both target your brand, but cybersquatting often involves holding domains hostage for profit, while typosquatting typically aims to capture mistyped traffic.

Why Your Shopify Brand Gets Targeted

Brand Recognition

The more recognizable your brand becomes, the more valuable associated domains become to squatters.

TLD Expansion

New domain extensions (.shop, .store, .io) create opportunities for squatters to grab your brand name in extensions you haven’t registered.

Defensive Gaps

Many merchants secure their primary domain but forget variations, leaving openings for squatters.

Resale Profit

Squatters bet that you’ll pay a premium to recover domains containing your brand name.

Legal Protections Available

ACPA (Anticybersquatting Consumer Protection Act)

US law that allows trademark holders to sue cybersquatters for damages and domain transfer. Requires proving bad faith registration.

UDRP (Uniform Domain-Name Dispute-Resolution Policy)

ICANN’s international process for resolving domain disputes. Faster and cheaper than litigation, but only results in domain transfer—no damages.

WIPO Arbitration

The World Intellectual Property Organization handles UDRP cases internationally, providing expert panelists for domain disputes.

Steps to Recover a Cybersquatted Domain

1. Verify trademark rights: Document your trademark registration or common law rights
2. Gather evidence: Screenshot the squatted domain, note registration dates
3. Send a cease and desist: Sometimes squatters surrender domains when faced with legal action
4. File UDRP complaint: If negotiation fails, initiate formal dispute resolution
5. Consider litigation: For egregious cases with damages, court action may be appropriate

Prevention: Registering Defensive Domains

Proactive protection is cheaper than recovery:

• Register your brand in major TLDs (.com, .net, .org, .co)
• Secure relevant new TLDs (.shop, .store) for e-commerce
• Register obvious misspellings
• Monitor for new registrations matching your brand

The cost of a few extra domains is minimal compared to fighting cybersquatters.

How Recon Helps

Recon protects your Shopify brand from cybersquatting by:

• Monitoring for domain registrations containing your brand name
• Alerting you immediately when potentially infringing domains appear
• Identifying high-risk domains for defensive registration
• Providing guidance on dispute resolution options

FAQ

Q: How much does it cost to file a UDRP complaint?

A: UDRP filing fees range from $1,300-$4,000 depending on the number of domains and panelists. It’s significantly cheaper than litigation, which can cost tens of thousands.

Q: Do I need a registered trademark to fight cybersquatting?

A: A registered trademark strengthens your case significantly, but common law trademark rights (established through use in commerce) can also support UDRP complaints.

Q: What if the squatter actually uses the domain for a business?

A: UDRP complaints become more complex when the domain is actively used. You must prove the registrant has no legitimate interest and registered in bad faith. Consult an attorney for contested cases.