Is cybersquatting a form of unfair competition?
Yes, cybersquatting is a form of unfair competition and is illegal in California. Cybersquatting occurs when someone registers a trademarked name or phrase as a web address, with the intent to sell the domain name back to the company that owns the trademark. This is an illegal form of competition because it takes away from a company’s legitimate market share and blocks them from using the domain name for their own purposes. In California, cybersquatting is illegal under the state’s Unfair Competition Law. This law prohibits any business practices that are likely to deceive the public or mislead consumers about the sponsorship of goods or services. This can include registering a domain name with a trademarked name, selling counterfeit goods, and engaging in similar false or deceptive practices. If a company discovers that someone is cybersquatting by registering a domain name with their trademark, they can take legal action against the cybersquatter under the Unfair Competition Law. Depending on the severity of the cybersquatting, they may be able to recover damages such as the amount of profits the cybersquatter made from the domain name or the cost of registering the domain name. Overall, cybersquatting is a form of unfair competition that is illegal in California. Companies should be aware of this form of trademark infringement and take immediate legal action if they discover that someone is cybersquatting with their trademarked products or services.
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