While the idea of a class action against cybersquatters has not been tested, legal authorities indicate that such an action may prove viable. A class action is a lawsuit that is brought by a small number of plaintiffs (“representative plaintiffs”) on behalf of larger group (the “class”). Thus, for example, a single trademark holder could theoretically bring a lawsuit against a cybersquatter on behalf of both itself and other trademark holders who have been injured by the cybersquatter’s misconduct. A class action may be an effective tool against a cybersquatter because it threatens the cybersquatter with liability for numerous lawsuits within a single legal proceeding.

Class actions are possible where: 1) the class is so numerous as to make separate lawsuits impractical, 2) there are questions of law or fact common to the class, 3) the claims and defenses of the representative plaintiff is typical of the claims and defenses of the class, and 4) the representative plaintiff will fairly and adequately protect the interests of the class. In the context of cybersquatting, it is quite possible that trademark holders would satisfy these standards. Specifically, a cybersquatter may have infringed upon the rights of a class of trademark holders by registering numerous domain names infringing on their trademarks. Unlike a traditional anti-cybersquatting action, with a class action, the cybersquatter could be forced to turn over a major portion of its domain portfolio, as well as potentially pay significant damages.

In the same vein, legal authorities have postulated that a class action may be possible where the class is composed of consumers rather than trademark holders. Under this conception of the class action, a single consumer could bring a lawsuit on behalf of other consumers who have been mistakenly led to the cybersquatted website. Again, the benefit of such a class action is that the cybersquatter will face potential liability for its misconduct as to all consumers, and not merely to the representative plaintiff.

While the cybersquatting class action remains a new concept, attorneys who are experienced in anti-cybersquatting law have expressed a vigorous interest in pursuing these claims.