Victims of cybersquatting have several options they can choose from to stop a cybersquatter’s misconduct and recover their domain names. Initially, a trademark holder may simply wish to send a cease-and-desist letter to the cybersquatter, demanding that the cybersquatter return the domain name immediately. Such a cease-and-desist letter may state that if the cybersquatter does not comply with the letter, the trademark holder will file a lawsuit, which could result in serious consequences to the cybersquatter. The cease-and-desist letter is an inexpensive approach, which can often bring positive results.

Once a cybersquatting victim decides that he or she needs to adopt a more aggressive approach, there are two primary domain name rules providing legal channels for recovering a domain name: the Anticybersquatting Consumer Protection Act (“ACPA”) and ICANN’s Uniform Domain Name Dispute Resolution Policy (“UDRP”).

The ACPA allows trademark holders to file lawsuits against cybersquatters in the United States federal courts, and allows for the recovery of up to $100,000 per domain name in damages from the cybersquatter, plus costs and fees. The ACPA also addresses situations where the cybersquatter is located in a foreign country, or where the cybersquatter cannot be identified at all. In such situations, the ACPA enables the cybersquatting victim to recover his or her domain name, but does not allow for the recovery of damages. This process is referred to as an in rem action. The ACPA is set forth in the United States Lanham Act (15 U.S.C. §1125(d)), which is the comprehensive federal law on the topic of trademark infringement.

ICANN, the nonprofit organization that oversees the domain name registration system, has also promulgated rules governing domain name disputes. When anyone registers a domain name, that person is required to submit to binding arbitration in the event of a dispute concerning that domain name, including an allegation of cybersquatting. This binding arbitration is conducted according to ICANN’s Uniform Domain-Name Dispute Resolution Policy (“UDRP”). UDRP proceedings are intended to offer an efficient process, where the issues are decided without a trial or oral hearing. Unlike a lawsuit brought under ACPA, however, UDRP does not allow for the recovery of damages, costs, or fees.