Definition and typical manifestations of cybersquatting Cybersquatting describes the unauthorized registration or use of Internet domains that contain protected third-party names, brands or company logos. The aim of a typical cybersquatter is to gain financial benefit by misappropriating well-known or valuable domain names, for example by reselling the domains at inflated prices to the legitimate name or trademark owners or by redirecting Internet traffic to their own profitable offers.

Relevant legal principles in trademark and naming law Cybersquatting can give rise to various legal claims:

• Trademark law: If a registered domain contains a protected trademark and is used for business purposes, this often constitutes a trademark infringement in accordance with Section 14 of the German Trademark Act (MarkenG). The owners of the trademark rights can demand injunctive relief, compensation and transfer or deletion of the infringing domain.
• Name law: If names of natural or legal persons are misused to register domains, there is a claim under Section 12 of the German Civil Code (BGB). The misuse regularly leads to a likelihood of confusion or confusion of assignment, which leads to claims for injunctive relief and removal of the name holder.

Immoral obstruction according to supreme court case law In its landmark ruling (“shell.de” ruling), the German Federal Court of Justice (BGH) clarified that domain holders who act with immoral intent and deliberately obstruct or damage third parties are obliged to transfer the domain. This case law emphasizes that the mere registration of a domain for the purpose of financially exploiting the legitimate owner of the name or trademark is to be considered an immoral act.

Out-of-court dispute resolution procedures and international approaches ICANN’s Uniform Domain-Name Dispute-Resolution Policy procedure (UDRP) is particularly suitable for out-of-court dispute resolution. This procedure enables trademark owners to reclaim generic top-level domains (.com, .net, .org etc.) efficiently and cost-effectively if cybersquatting can be proven. In Germany, .de domains are administered by DENIC, which, however, only withdraws or transfers domain names after a court decision has been issued.

Preventive measures against cybersquatting The most effective practical protective measure against cybersquatting is the preventive registration of important domains. Companies and well-known persons should register trademark rights and relevant domains at an early stage in order to prevent possible infringements. Comprehensive domain monitoring and rapid responses to abusive registrations can significantly reduce potential damage.

Limits and challenges in the legal prosecution of cybersquatting Although legal measures are available, the effective enforcement of claims is sometimes difficult, especially when domains have been registered by anonymous operators abroad. Taking action against domains whose owners only appear to have no commercial interests (e.g. “parking” sites without active content) is also challenging. The international dimension of internet law often requires complex and costly proceedings.

Conclusion on the legal assessment of cybersquatting In summary, cybersquatting is a specific legal problem in the area of conflict between trademark law, name law and internet law. Although effective instruments are available to combat it, the best strategy remains the preventive securing of relevant domains and comprehensive protective measures to avoid conflicts from the outset.