Piracy in another domain

Cybersquatting is a growing menace to companies the world over. India has its own mechanism to address the problem but serious challenges remain, Alfred Romann reports

Every five days, millions of internet domain names change hands. The timing is the direct result of a loophole in the global system of website registrations that allows users to try out a domain name for five days without paying for it.

This is known as “domain tasting”. While the majority of companies and individuals use these trial periods for legitimate purposes, a growing number are abusing the system by serially registering thousands of domain names and keeping them for the prescribed period before letting them go. This practice is called “domain kiting”, a term coined by Bob Parsons, the CEO of GoDaddy.com.

Domain kiting has serious implications for intellectual property (IP) owners around the world. In particular, it has given rise to a marked increase in instances of “cybersquatting”, which is defined in the US Anticybersquatting Consumer Protection Act, as “registering, trafficking in, or using a domain name with bad-faith intent to profit from the goodwill of a trademark belonging to someone else”.