A domain name may seem like a small thing—just a web address. But in practice, it directly affects a company's online identity.
When a company builds its digital identity, the domain name is no longer just a technical element. It is part of its brand, its reputation, and, in many cases, the first point of contact with customers, suppliers, or users. That is why, when a third party registers a domain that is identical or very similar to another company’s trademark, the problem is not limited to a mere formality. It can affect web traffic, sales, consumer trust, and even the security of the business itself.
This phenomenon, known as cybersquatting, is not new. However, it remains very much a reality. In fact, in 2025, the World Intellectual Property Organization (WIPO) handled 6,282 cases involving domain names—the highest number since it began providing this service 25 years ago.
What Is Cyber-Squatting and Why Does It Affect Brands?
Cyber squatting generally involves registering a domain name that reproduces, imitates, or unduly resembles another party’s trademark. In many cases, the goal is speculative: to later sell the domain to the legitimate trademark owner. In other cases, the risk is even greater: redirecting traffic, harvesting data, impersonating the company, or capitalizing on its reputation.
The very nature of the domain name registration system means that, unlike with trademarks, registration can take place without a prior examination to assess potential conflicts with prior rights. If the domain name is available, it can be registered.
This explains why small variations can have significant consequences. Adding a letter, changing an extension, inserting a hyphen, or using a similar spelling may be enough to create a domain name that is technically different but commercially very similar to the original mark.
For a company, the damage can manifest in several ways: a loss of visitors, confusion among customers, damage to its reputation, exposure to fraud, or interference with marketing campaigns.
Domain Names and Trademarks: Different Assets, Interrelated Risks
It is important to distinguish between two concepts. A domain name is not, in and of itself, a trademark. Its primary function is to identify an Internet address. The trademark, on the other hand, identifies the commercial origin of goods or services and grants its owner an exclusive right within specific limits.
However, in practice, these two assets are closely linked. A strong brand typically requires a consistent digital presence. And a poorly protected digital presence can become a weak point in a brand’s strategy.
For this reason, domain management should not be approached as a purely technical or administrative matter. It is part of protecting a company’s intangible assets. Just as a company checks the availability of a trademark before launching it on the market, it is also advisable to analyze which domains should be registered, which extensions are relevant, and which variations could pose a risk.
The UDRP: An Out-of-Court Process for Recovering Domain Names
To address these types of disputes, the Uniform Domain-Name Dispute Resolution Policy, known as the UDRP, was created. It is an out-of-court procedure that allows trademark owners to seek the transfer or cancellation of domain names registered in bad faith.
The process is usually faster and more efficient than going directly to court. In addition, it allows disputes to be resolved regardless of the parties' locations.
WIPO's New Expedited Service: A Response to Time Constraints
It is in this context that the introduction of an expedited service under the UDRP is understood. The possibility of obtaining a decision within a maximum of 30 days, in certain cases, addresses a very specific need: to reduce the amount of time a potentially infringing domain name remains active.
The goal is not to replace the standard procedure—which will continue to be sufficient in many cases—but to offer an alternative for situations where speed is particularly important. For example, when the domain is causing actual harm or when there is a clear risk to a company’s online identity. In these scenarios, every day counts.
When Might It Make Sense to Use the Expedited Process?
The expedited procedure requires certain conditions, such as the absence of procedural issues, a prompt response from the parties, and effective cooperation from the registrar. Therefore, this is not an automatic mechanism, but rather an option designed for cases in which certain conditions are met.
In addition, this approach involves an additional cost. This makes it necessary to assess, on a case-by-case basis, whether the urgency justifies using the expedited service or whether the standard procedure is sufficient.
Protecting a brand online requires foresight and speed
The evolution of the UDRP and the introduction of an expedited procedure reflect the system’s adaptation to today’s reality. The digital environment is faster, more exposed, and more complex than it was 25 years ago. Dispute resolution mechanisms must follow that same logic.
Cyber squatting persists because registering a domain name remains simple and inexpensive, while the value of a brand and its online presence has continued to grow. Given this balance, mechanisms such as the UDRP remain essential for rights holders.
At ELZABURU, we help innovative companies protect, manage, and maximize the value of their intangible assets, supporting them in protecting their trademarks and domain names through strategic advice that ranges from registration and portfolio management to monitoring and defending their rights in any jurisdiction.
Luis Beneyto, Partner in the Trademark Practice Group at ELZABURU
Frequently Asked Questions About Cybersquatting and Domain Names
What is cyberoccupation?
Cyber squatting is the registration of a domain name that replicates or imitates another party's trademark, typically for speculative purposes, to divert traffic, or to take advantage of that trademark's reputation.
Is a domain name the same as a trademark?
No. A domain name identifies an Internet address, while a trademark identifies the business origin of products or services. Even so, these two assets are connected and must be managed in a coordinated manner.
What is the UDRP?
The UDRP is an out-of-court procedure that allows for the transfer or cancellation of certain domain names registered in bad faith when they infringe upon prior trademark rights.
When is it best to use the fast-track process?
This can be useful when the infringing domain poses an urgent risk to the company: identity theft, active campaigns, traffic diversion, data collection, or disruption to strategic markets.