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Domain Names and the Fragility of Brands Online

Posted on 8.23.2009

Domain name management and brand protection company CSC (Corporation Service Company) released the findings of a recent study on trends of disputed domain names.

More than $220 million was spend on reclaiming domain names from third parties through the Uniform Domain Name Dispute Resolution Policy (UDRP) according to study results. According to CSC, "If brand owners had registered these domain names proactively, it would have only cost them $1.1 million (£600K), yielding a cost savings of $219 million (£132 million)."

"It isn't possible to completely eliminate the risk of cybersquatting; however, our analysis shows clear brand infringement patterns which can help avoid the unnecessary cost of going to UDRP," said Robert Holmes, Director of Accounts with CSC. "Our research helps brand owners identify these patterns so they can prioritize domain name registrations for the future and reduce the risk of infringement."

The analysis included all cases filed between January 2000 and May 2009 with the two major UDRP providers, including the United Nations' World Intellectual Property Organization (WIPO). The research covered UDRP cases covering more than 45,000 domains, of which brand owners managed to recover 85% of non-cancelled disputes.

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