Dotster Named in Massive cybersquatting

Dotster was charged in unlawfully participating in a massive cybersquatting operation that targeted such companies like Cingular Wireless, Disney, Ikea, Google, Neiman Marcus, Playboy, and Verizon. Dotster is a one of the largest domain name registrars named in a new federal lawsuit filed by high-end retailers Neiman Marcus and Bergdorf Goodman. They alleged that Dotster abused its position as a registrar by "checking out" hundreds of domain names that bear a resemblance to the correct names and then keeping the ones that were only visited by Web users who couldn’t spell so well.

For example, when CNETNews.com typed NeimuMarcus.com instead of NeimanMarcus.com, they found that the Web page included code that referenced Dotster and subsidiary RevenueDirect.com as well as featured ads for Neiman Marcus rivals Bloomingdales and JCrew.

Cybersquatting is the practice of registering domain names that could violate a company’s trademark. Cybersquatting is also known as typosquatting. There have been other disputes before which included Apple claiming iTunes.co.uk but the Dotster lawsuit has a new twist. The registrar used its special status with the Internet Corporation for Assigned Names and Numbers to obtain misspelled domain names for a few days to measure the amount of traffic and then keep the ones that would be profitable in terms of advertising.

The lawsuit filed by the law firm of Christie Parker and Hale Perkins Cole charges Dotster with violation of federal laws against trademark infringement and dilution, federal cybersquatting laws, and Washington State consumer protection laws against deceptive acts and practices.

I am not surprised that even registrars are guilty of such deceptive acts because in the end profit is the name of the game to all corporations. There has to be severe penalties for corporations that take advantage of their position of power. It is easier said then done but whatever can be done must be done.