Cybersquatting & Domain Dispute Lawyer Attorney Law Firm - Verizon v Navigation Catalyst Systems, Inc. Cybersquatting Lawsuit Settled: NCS Continues to Cybersquat Trademark Protected Domains

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2008.10.28

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Navigation Catalyst's reasoning for alleging it is not acting in bad faith appears flawed. Having automated software register domain names does not exonerate them from liability.

Navigation Catalyst's reasoning for alleging it is not acting in bad faith appears flawed. Having automated software register domain names does not exonerate them from liability. NCS's position with regard to its "scrubbing" software ignores the fact that the registrant is ultimately responsible for its domain portfolio. NCS's provision of such software sounds of wilfull blindness and should not obviate the duty it has to adhere to the law, including the ACPA.

As for its offers to transfer domain names once contacted by a trademark owner, this too is an implausible position. While a trademark owner does have a duty to monitor and protect its trademark, NCS's voluntary transferring of the cybersquatted domain names again does not somehow erase the initial bad faith registration and use of the domain name. While it may mitigate the ongoing damage suffered by the trademark owner, NCS's actions have likely already subjected it to $100,000 damages per cybersquatted domain name.

Ultimately, NCS may change its business practices in an effort to avoid cybersquatting liability. Unfortunately for NCS, their prior actions and the resulting harm to trademark owners must still be remedied.


Navigation Catalyst's software obviously targets high traffic web sites. Those web sites, more often than not, will be trademark protected. Their software is the problem and their after the fact human scrubbing does not absolve them of liability for their initial registration.

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