2011.12.10

To Defensively Register Domain Names or Not? - A .XXX Example

Some universities in Michigan chose to defensively register .xxx domain names in order to protect their brand.  Some did not, choosing instead to actively monitor their trademarks and brand online.  The Detroit Free Press domain name article highlights the choice a trademark owner must make.  Should I register domain names defensively in order to protect against cybersquatting, or should I pursue cybersquatters after I identify a violation of trademark rights?  As a domain name attorney and trademark lawyer, there are several considerations I typically discuss with clients.

1. Domain name registrations are relatively inexpensive, although .xxx TLD registrations are far more expensive than traditional .com TLD registrations.
2. Typically, a strong domain portfolio should include your company name, trademarks and service marks, key personnel names, typos, and "sucks" domains.
3. While you can monitor your trademarks and service marks in order to identify cybersquatting, resolving such an issue can be costly and timely.  Several options are available:
    a. A UDRP (Uniform Domain Dispute Resolution Policy) Complaint can be filed with an arbitration forum such as WIPO or NAF in order to recover the domain name.
    b. An ACPA (Anti-cybersquatting Consumer Protection Act) lawsuit in federal court allows for recovery of damages, but is costly to file.
    c. A threat letter or demand letter may or may not lead to you recovering the domain name.

In light of these, I always recommend defensive domain name registrations.  However, no matter how diligent you are in your defensive registrations, you should still monitor your marks and actively pursue cybersquatters.  While domain names are valuable assets, company brands are oftentimes the most valuable asset.  As such, failure to monitor and protect can cost you business, goodwill, reputation, and money.  Act accordingly and contact a domain name attorney if you have questions.

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