Is cybersquatting a form of unfair competition?
Yes, cybersquatting is a form of unfair competition in Pennsylvania. Cybersquatting occurs when someone registers an internet domain name that is similar to or copies an existing trademark, with the intent to profit from it. This action dilutes the value of the trademark, confuses internet users, and damages the reputation of the trademark holder. In Pennsylvania, unfair competition is governed by the U.S. Lanham Act, the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL), and the Pennsylvania Fair Trade Practices Act (PFTPA). These laws protect businesses by prohibiting unfair practices, such as false advertising and deceptive business practices. Under these laws, cybersquatting is considered an unfair trade practice. The UTPCPL protects businesses from cybersquatting by prohibiting unfair competition, defined as “any act which is likely to cause confusion or misunderstanding as to the origin, sponsorship, or approval of goods or services.” The PFTPA also prohibits cybersquatting by prohibiting “unfair methods of competition” and “unfair or deceptive acts or practices.” Cybersquatting can result in damages to the trademark holder, including monetary damages, as well as the transfer of the domain name. Pennsylvania businesses can take action against cybersquatters by filing a lawsuit in the appropriate court.
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