Combating cybersquatting menace to virtual existence

“Cybersquatting” was succinctly defined by Delhi High Court (in Manish Vij v Indra Chugh) as “obtaining fraudulent registration with an intent to sell the domain name to its lawful owner at a premium”. This form of internet piracy – the deliberate, bad-faith and abusive registration of domain names in violation of the rights of trademark owners – breaches a trademark owner’s fundamental right to exclusively use its trademark. In an early decision (2001), a US federal court in Virginia described cybersquatting as “the internet version of a land grab”.

In India, no legislation explicitly describes cybersquatting or other domain name disputes. The Information Technology Act, 2000 (IT Act), which addresses many cybercrimes, oddly ignores the problem of domain name disputes and cybersquatting. However, domain names may be considered trademarks based on use and brand reputation. In the absence of appropriate law that deals with cybersquatting, victims can initiate an action for passing off and infringement of trademarks under the Trade Marks Act, 1999. Numerous cases have laid down that for such an action to succeed the defendant should have sold or offered its goods/services in a manner that deceives the public into thinking that the goods/services of the defendant are those of the plaintiff; misrepresentation by the defendant to the public should be established; and loss or the likelihood of it should be established.

Abhigyan Ashok is an associate at LexOrbis.