Every year begins with the release of the World Intellectual Property Organization’s (WIPO) Arbitration and Mediation Center statistics on domain name disputes. These figures are somewhat useful for online brand protection specialists. However, they don’t fully capture the extent of the cybersquatting phenomenon.
WIPO’s statistics: a glimpse into cybersquatting
Since the implementation of the Uniform Domain Name Dispute Resolution Policy (UDRP) in late 1999, WIPO has been the leading dispute resolution body, handling the majority of cases. WIPO’s statistical tools, recognized for their legitimacy and reliability, can reveal certain aspects of cybersquatting.
In 2023, WIPO administered 428 more procedures than the previous year (5764 in 2022 and 6192 in 2023), marking a 7.43% increase and continuing the trend of previous years.
Source: wipo.int
It’s important to note that 80% of the disputed domain names are .COMs, and 70% of the cases result in domain transfers, with only 3% being dismissed. This suggests that cybersquatting is on the rise.
These figures should be considered alongside the increasing percentage of people with internet access and the ever-growing number of domain names.
In 2022, 61% of the global population had internet access (5.1 billion people), which increased to 67% (5.4 billion) in 2023.
Source: itu.int
In November 2022, there were 349.9 million domain names, including 160.9 million .COMs, and by November 2023, this number rose to 359.3 million, with 160.8 million being .COMs. The total number of domain names grew by approximately 2.69% from 2022 to 2023.
The rise in cybersquatting parallels the growth in global population and domain names. This correlation could be due to increased digitalization and the need for distinctive domain names as more people come online, creating more opportunities for cybersquatting in an increasingly crowded internet space. This issue is exacerbated by the continuous creation of new extensions, providing even more opportunities for cybersquatters.
It’s no surprise that certain industries are more vulnerable to cybersquatting.
Source: wipo.int
Additionally, the share of .COM domains among generic Top-Level Domains (gTLDs) has been increasing:
– 70% in 2021
– 78.5% in 2022
– 80% in 2023
This doesn’t mean that new gTLDs aren’t targeted by cybersquatters. In fact, .SHOP (with 267 disputed domain names in 2023) surpassed .ORG (with 257 disputed names). Other extensions like .ONLINE and .STORE also saw significant numbers of disputes. The relatively low share of new gTLDs in UDRP proceedings can be explained by several factors.
First, the Trademark ClearingHouse (TMCH) mechanism plays an effective filtering role by allowing brand owners to prevent the registration, by third parties, of domain names identical to their brands during sunrise periods. By way of illustration, procedure D2023-0006 relating to the domain name <rebeccazamolo.store>, identical to the REBECCA ZAMOLO brand, could have been avoided by adopting appropriate measures with the TMCH ((WIPO, D2023-0006, YZ Productions Inc. v. Yati binti Lanang, March 14, 2023). The same goes for <bforbank.online> (OMPI, D2023-0094, Bforbank contre Alain Perrier, 8 février 2023) and <serco.live> (WIPO, D2023-019, Serco Group Plc v. Ronald Quinton, February 16 , 2023). The use of TMCH and the registration of domain names during sunrise periods is all the more crucial when the extension concerns a good or service for which the mark is registered (WIPO, D2023-0200, CABIFY ESPAÑA S.L. c . Jesús Fernández Matallanes, Federación Profesional del Taxi de Madrid, 1 de marzo de 2023, regarding the domain name <cabify.taxi>). It therefore seems necessary for brand owners to keep informed of the marketing of new extensions.
Secondly, domain names registered under new gTLDs are, most often, too expensive to be integrated into the economic model of cybersquatters, which dampens the desires of most of them. However, it should be kept in mind that some registration entities offer, spontaneously or recurringly, promotions that can make the cost of a new gTLD sufficiently attractive to a cybersquatter. Monitoring new gTLDs is therefore not an option, it is necessary.
The inability to fully grasp cybersquatting
WIPO’s statistics don’t fully reflect the reality of cybersquatting. It’s also important to consider proceedings under other dispute resolution bodies approved by the Internet Corporation for Assigned Names and Numbers (ICANN):
the Arab Center for Domain Name Dispute Resolution (ACDR);
the Asian Domain Name Dispute Resolution Centre (ADNDRC);
the Canadian International Internet Dispute Resolution Centre (CIIDRC);
the Czech Arbitration Court Arbitration Center for Internet Disputes; and
the National Arbitration Forum.
In addition, many companies are forced to determine priorities in their fight against multiple infringements of their trademark rights. Indeed, cybersquatting is just one brand abuse among others. Therefore, companies that are victims of cybersquatting on a recurring basis must make choices and adopt a defense strategy including the definition of priorities, most often, based on the level of threat (for example, if the domain name refers to a merchant store, promotes counterfeit goods or is used for a phishing campaign). In addition, many companies do not have a sufficient budget to detect violations of their brand and initiate processes or procedures to stop them. As an aside, as companies are required to conduct investigations, the issue of the taxation of brand protection services would deserve to be raised at some point. Regardless, the proportion of cybersquatting cases that are not subject to procedures is, in essence, indefinite.
Let us add that of the 6,192 procedures administered by WIPO in 2023, 1,020 concerned country code Top-Level Domains (ccTLDs), or 16% (.CO (Colombia), .EU (European Union), .CN (China) and .AU (Australia) forming the leading quartet: wipo.int). However, it should be remembered that certain extensions cannot be the subject of an extrajudicial procedure such as UDRP, including .DE (Germany: 17.6 million domain names in 2023: dnib.com) and .RU (Russia). : 5.6 million domain names in 2023: dnib.com).
In conclusion, WIPO’s statistics only reveal a fraction of the cybersquatting iceberg, which shows no signs of shrinking. To protect your trademarks, remain vigilant and take action. IP Twins is here to support you.
