Microsoft Corp. has decided to focus its legal attention on a longtime Net problem: cybersquatting. The company just launched a series of lawsuits in the U.S. and the European Union against so-called
"cybersquatters," or those who, with no affiliation whatsoever with the brand, register a trademarked domain name with the intent to profit from it. "Microsoft.com" would be a perfect example.
Cybersquatters hold trademark owners hostage by either forcing them to pay for domains using their name, linking back to the real site through an affiliate network and receiving a cut for the
traffic, or by displaying nothing but search ads that are sometimes bought unwittingly by trademark owners. To say the least, the practice is a nuisance for companies doing business over the Internet;
not only do they lose money, but often, traffic as well.
The Microsoft suit comes during the same week as a warning from the World Intellectual Property Organization that the practice
of cybersquatting grew 25% since last year. The software giant is suing several companies in the U.S., U.K., Germany and Italy alleged to have registered trademarks infringing on its intellectual
property. Microsoft has already won cases in Utah and California, awarded $3 million in damages and the return of 409 domain names.
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