Safeguard your brand online from cybersquatting and domain grabbing.
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Avvocato Arlo Canella
Are domain names still a strategic asset for businesses, or have they lost significance in intellectual property? Once, the domain name was a key factor in SEO and online visibility. Today, however, Google prioritizes content quality, user experience, and backlinks more than the domain name itself. Nevertheless, the domain market remains active and phenomena such as cybersquatting and domain grabbing can damage businesses of all sizes. In this article, we examine when it is truly necessary to defend a domain and which legal tools are available for protection, through legal actions and rapid domain transfer procedures. Safeguarding one’s digital brand is important, but it should not be overlooked that indexing and relevance are more important than the domain name itself.
In the digital era, a domain name is far more than a mere web address: it represents a key component of a company’s online identity. Just as a trademark distinguishes a business from its competitors in the physical market, an internet domain serves as a point of reference for customers, suppliers, and partners in the digital space. However, its weight in search engine visibility has changed from the past.
Previously, having a domain containing keywords was a significant SEO advantage. Nowadays, Google’s algorithms prioritize factors such as content quality, user experience (UX), and backlinks, relegating the domain name to a secondary role in search engine rankings. This means that choosing an effective domain name is still beneficial for branding and user trust, but it is no longer decisive for SEO (see also: “Business online presence: legal perspectives from domain names to “social commerce” by A. Canella).
Even with this shift, the domain name market remains active: certain parties register domain names with the sole purpose of reselling them at exorbitant prices to those with a legitimate interest. While this phenomenon may sometimes be legal, it can conceal abusive practices such as cybersquatting, which involves registering domains that are identical or similar to well-known trademarks with the intent to confuse users or generate illicit profits (see also: “Choosing a web domain can be prove complicated: the ‘Stock’case” by A. Canella).
A typical case of cybersquatting involves registering a domain containing a famous brand and then reselling it at a high price to the rightful owner. Another common practice is domain grabbing, which entails the systematic acquisition of domains linked to trademarks or well-known names, in the hopes of profiting from their subsequent resale. These activities can cause both economic and reputational harm to businesses, compelling them to initiate legal actions to regain control of their domain name.
This issue does not affect only large companies: SMEs and professionals can also suffer from cybersquatting, particularly if their trademark is used to create fraudulent websites, phishing scams, or other deceptive practices. Although a domain name no longer guarantees good positioning on Google, its unlawful appropriation can still have severe consequences. For this reason, it is essential to be aware of the legal tools available for protecting one’s digital identity.
In light of the risks posed by cybersquatting and domain grabbing, businesses — under Italian Law and not only — can rely on two main legal remedies:
The latter is not a formal legal process, but rather an administrative mechanism designed to resolve disputes over domain ownership without the need to go to court. It is internationally recognized and regulated by ICANN (Internet Corporation for Assigned Names and Numbers), the body responsible for overseeing domain assignments.
In the past, losing a domain name could compromise a business’s visibility, but today, the impact of cybersquatting is more subtle. Google no longer provides SEO benefits to domains containing keywords or famous brands, therefore a stolen domain name will not automatically rank higher in search results compared to the official website. However, the primary risk remains reputational damage: a domain name used for fraudulent activities, phishing, or harmful content can create confusion and undermine customer trust.
The transfer procedure is particularly appreciated for its efficiency: decisions are made within a few weeks and are based solely on documentary evidence. Furthermore, the entire process is conducted online, making it more accessible than traditional legal proceedings. However, this procedure does not allow for the compensation for loss, but only for the regain of the domain name or, in case of an adverse decision, the preservation of the current registrant’s ownership.
Many domain names, especially those with generic extensions such as .com, .net, and .org, are governed by the Uniform Domain-Name Dispute-Resolution Policy (UDRP), the international protocol regulating domain name reassignment. WIPO (World Intellectual Property Organization) is one of the main bodies administering these procedures, and more information can be found directly on the official website: https://www.wipo.int/amc/en/domains/
To initiate a domain name transfer, the complainant must demonstrate three fundamental conditions, as established by the UDRP (Uniform Domain-Name Dispute-Resolution Policy) and implemented in most arbitration procedures.
a) The domain was registered solely for the purpose of reselling it to the rightful owner at an overpriced amount.
b) It is being used for deceptive activities, phishing, or to damage the trademark’s reputation.
c) The domain was registered but never actively used (domain parking), if accompanied by other indications of bad faith.
If all three of these conditions are met, the arbitrator may order the transfer of the domain name to the rightful owner. If not, the domain name will remain with the current registrant.
However, losing a domain name is no longer synonymous with losing online visibility. Today, search engines reward content quality, site structure, and backlinks more than the domain name itself. This means that even if a business loses a domain due to cybersquatting, it can still maintain good positioning online through an effective SEO strategy.
For the .it domains, the transfer procedure – known in Italy as the reassignment procedure – follows specific rules, different from the international UDRP system. In Italy, before requesting reassignment of a domain name, an opposition must be filed at Registro.it, the organization responsible for managing national domains.
The opposition aims to temporarily block the contested domain for 180 days, preventing the current holder from transferring or altering its status. This gives the complainant time to gather evidence and initiate the actual reassignment procedure. However, the opposition must be well-motivated and supported by documentation; if it lacks concrete evidence, it may be rejected.
Once the procedure is initiated, the dispute is examined by an independent adjudicator, who evaluates the evidence provided by the parties. The three fundamental UDRP criteria also apply to the .it domains:
1. Similarity to a registered trademark
2. Lack of legitimate interest by the domain holder
3. Bad faith in registering or using the domain
If the claim is valid, the domain name will be reassigned to the rightful owner; otherwise, the registrant will retain ownership.
Important: The procedure for the .it domains does not provide for compensation of loss, as it is not of a jurisdictional nature. If a company believes it has suffered economic or reputational harm due to the improper use of a domain, the only means of obtaining compensation is through ordinary legal action.
Furthermore, the reassignment procedure may be interrupted in two cases:
If the domain holder does not respond to the allegations, the decision will be made based solely on the complainant’s claim.
Today, protecting one’s digital presence requires a broader and more targeted strategy (see also: “Structure and ‘legal configuration’ of the web” by A. Canella). It is important to safeguard flagship domains, but without excess, because indexing and search engine relevance matter more than the domain name itself. However, if someone improperly exploits a company’s reputation or engages in acts of unfair competition, it is essential to act decisively and consult with a specialist to determine the most effective strategy.
Avvocato Arlo Canella
