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Case Comments – Cybersquatting

Lahoti v. Vericheck, Inc., 586 F.3d 1190 (9th Cir. 2009) – the decision against the defendant for bad faith adoption of domain name vericheck.com was affirmed, based in part on defendants prior acts of cybersquatting where the defendant was ordered to transfer domain names obtained in bad faith.  The Court reasoned that defendant’s prior failed defenses against cybersquatting made it unlikely that the defendant legitimately believed his use of the vericheck.com domain was lawful or amounted to fair use in the present case.

The Lahoti decision is significant to all persons whose domain name has been held hostage by cybersquatters, whether celebrities, corporations, fashion brands, sports figures, or small businesses, because it allows a plaintiff to establish that a defendant’s prior acts of cybersquatting, even when dealing with unrelated domain names, not only supports a showing of bad faith registration, but may invalidate any safe harbor defense the infringer could potentially have asserted, i.e., that he/she believed and had reasonable grounds to believe that the use of the domain name was a fair use or otherwise lawful.

In plain English, if a Defendant has unsuccessfully defended against allegations for cybersquatting in the past, it is less likely that the Defendant will be able to defend a subsequent litigation by trying to convince a Court that he believed his use of the domain was protected  as a fair use or in any other way lawful.

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