Cybersquatters
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The article (Why Does E-Business Need IP?) gives the reader insight on trademark issues in relation to domain names, known as website addresses. People known as “cybersquatters” will register domain names that are either exact or very similar to the names of trademarked or well-known companies. They then attempt to sell the names or use them for illegal means in order to make a profit. Copyright laws and how they relate to E-Business is also discussed within the article.
MANAGERIAL PERSPECTIVE
Cybersquatters are individuals online who register domain names (website addresses) that are the same, or similar to the name of established companies. They do this with the illegal intention of selling the domain name for profit, or use it in an already established website they own in order to increase site traffic. Increased traffic means increased profits though advertising. Often times, the cybersquatters are able to register a domain name before a company is able to trademark, they do this as an advantage over the newly trademarked company. When a new company wants to enter into e-business, their name is everything. However, their name is already a registered domain, so in order to get the name; they will have to buy it from a cybersquatter, and often times it is not cheap. This situation could be preventable if a company were to buy the domain name when the business is born. When the business is born, the business name is registered under law, and once the legal papers are filed, forming a corporation, partnership, or limited liability company (LLC), the domain name or names in relation to the business name should be purchased as well.
When the internet was first developed, many companies did believe that the internet would be a good business application, therefore they did not register domain names. Cyber-theft was born, and business names sold as fast as they could get a hold of them. When the potential of E-commerce was noticeable, the companies had to pay large sums of money to get their own-trademarked name. Seeing this, U.S. Congress enacted the Anti-Cybersquatting Consumer Protection Act (ACCPA). This new act gave trademarked companies legal rights to a domain name, even if it had been purchased prior with the intention of profiteering from its sale.
In recent years, copyright infringement has become an all too familiar incident for people and businesses alike involved in