Is cybersquatting a form of unfair competition?
Yes, cybersquatting is a form of unfair competition, which is illegal according to Texas law. Cybersquatting is the practice of buying up web domain names that are either trademarks or very similar to trademarks and then selling them for a profit. This is considered to be infringing on another’s trademarks as well as a form of misappropriation of the trademark owner’s intellectual property rights. In Texas, statutes have been passed to protect trademark owners from cybersquatting. These statutes provide criminal penalties as well as civil remedies for the victims of cybersquatting. In a civil lawsuit, the trademark owner may be able to recover damages such as the cost of registration or purchase of the domain name, attorney’s fees, and costs associated with re-establishing the reputation and goodwill of the trademark. In addition to civil remedies, the owners of trademarked domain names may also bring a criminal action for violation of the Texas Deceptive Trade Practices Act. Simply put, cybersquatting violates the rights of the trademark owner and Texas law provides remedies for victims of this unfair competition. Therefore, cybersquatting is a form of illegal unfair competition and is punishable by both civil and criminal penalties in Texas.
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