Is cybersquatting a form of unfair competition?

Yes, cybersquatting is a form of unfair competition under California law. Cybersquatting occurs when someone registers a domain name that closely resembles the trademarked name of another person or business and then either offers to sell the domain name to that person or business, or uses the domain name to attract Internet traffic intended for the other person or business. This type of behavior is considered unfair competition because it is a form of trademark infringement, and it can be damaging to the rightful owner of the trademark. The California Business and Professions Code states that it is unlawful for any person to “register, traffick in, or use a domain name that is identical or confusingly similar to a trademark or service mark in which the person has no rights or legitimate interests.” This means that any registered domain name that closely resembles a trademarked name is considered unfair competition. Under the law, trademark owners can take legal action against cybersquatters. This can include the filing of a lawsuit, seeking an injunction, or registration of the domain name with the Trademark Clearinghouse, which would block any other party from registering the trademarked name as a domain. As cybersquatting creates unfair competition, it is important to take action if you see someone engaging in this type of behavior. Be sure to contact an experienced attorney who can help you protect your trademark and help you take the right steps to address the cybersquatter.

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