Legal implications arising from domain name cybersquatting

Abstract

The fact that, according to the 2017 Global Digital report, more than half of the world population is currently connected to the Internet, with more than 3.75 billion people online today, clearly the exponential rate of growth of this phenomenon. Indeed, the Internet facility has become a vital tool which is used, amongst other purposes, for communication, entertainment and commerce. Today, more than ever, businesses are shifting from being rooted in the physical world to trading over the Internet, this offering them new possibilities of marketing and consequently increased profitability. Owning a space on this new information highway has become a sine qua non necessity for all important organisations, both public as well as private. The first part of this essay shall attempt to define the legal nature of domain names both overseas as well as locally with the scope of understanding better the effects and implications of cybersquatting. With domain names gaining more importance and value in the world of commerce, cybersquatting cases and abusive domain name registration have unfortunately increased dramatically. The author, after reviewing extensively the legal nature and implications of cybersquatting, makes reference to the lacuna within local legislation after analysing foreign legal systems, most particular on a European Union level. This is of considerable importance in view of a local court’s judgment on the only case of cybersquatting so far, whereby the need to legislate this fast growing sector, so to avoid having domain name disputes without the legal framework to serve justice to the aggrieved, has been clearly expressed. As a result of this analysis, as well as interviews with legal and technical specialists in this area, a proposal is made as to how such need may be duly addressed in a practical and cost effective manner. Thus, consequently, safeguarding the interests of both traders and consumers.