In order to stop a cybersquatter, the trademark owner must prove all of the following:

• the domain name registrant had a bad-faith intent to profit from the trademark
• the trademark was distinctive at the time the domain name was first registered
• the domain name is identical or confusingly similar to the trademark, and
• the trademark qualifies for protection under federal trademark laws -- that is, the trademark is distinctive and its owner was the first to use the trademark in commerce.

If the person or company who registered the domain name had reasonable grounds to believe that the use of the domain name was fair and lawful, they can avoid a court decision that they acted in bad faith. In other words, if the accused cybersquatter can show a judge that he had a reason to register the domain name other than to sell it back to the trademark owner for a profit, then a court will probably allow him to keep the domain name.

Using the ICANN Procedure

In 1999, after assuming control of domain name registration, ICANN adopted and began implementing the Uniform Domain Name Dispute Resolution Policy (UDNDRP) a policy for resolution of domain name disputes. This international policy results in an arbitration of the dispute, not litigation. An action can be brought by any person who complains (referred to by ICANN as the "complainant") that:

• a domain name is identical or confusingly similar to a trademark or service mark in which the complainant has rights
• the domain name owner has no rights or legitimate interests in the domain name, and
• the domain name has been registered and is being used in bad faith.

All of these elements must be established in order for the complainant to prevail. If the complainant prevails, the domain name will be canceled or transferred to the complainant, but financial remedies are not available under the UDNDRP. Information about initiating a complaint is provided at the ICANN website.