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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
Starting April 30, 2026, it will be possible to apply for new domain extensions. This process, which has not taken place since 2012, once again brings to the forefront of the debate a decision with significant strategic implications for businesses: operating under their own top-level domain—that is, adopting a .brand instead of relying on generic extensions such as “.com” or country-code extensions such as “.es.”
The application period will remain open until August 12, offering companies the opportunity to take their online presence to the next level.
The reopening of this process is no coincidence. The steady increase in online risks has highlighted the need to strengthen mechanisms for identifying and protecting trademarks in the digital environment.
In Spain, recent data show a clear trend: cybersecurity incidents continue to rise, with online fraud and phishing being particularly prevalent. In this context, phenomena such as cybersquatting (the registration of domain names by third parties that reproduce or imitate other companies’ trademarks) continue to pose a significant threat to companies in all sectors.
In light of this situation, .brand domains are being proposed as a tool that allows companies to strengthen their digital identity and create a safer environment for users. By operating under its own domain extension, the brand establishes a controlled space where the authenticity of the content is more easily recognizable.
Registering a .brand domain represents a significant departure from the traditional domain management model. Although these extensions are compatible with existing ones, they introduce a key difference: the company now has direct control over all domain names created under its own extension.
This means that:
Beyond protection, .brand domains offer a number of strategic advantages that can have a direct impact on a company's positioning:
Having your own domain allows you to build an online presence that is fully aligned with your brand, eliminating ambiguity and strengthening brand recognition.
In an environment where credibility is a critical factor, having your own domain makes it easier for users to clearly identify that they are interacting with the legitimate company.
.brand domains make it possible to develop more consistent and memorable naming structures for campaigns or projects, thereby increasing their commercial appeal.
Although it is not the only factor, consistency and clarity in domain architecture can contribute positively to a brand’s digital positioning strategy and overall visibility.
Despite their advantages, .brand domains do not appear, at this time, to be a universal option. Their adoption depends on one main factor: cost.
The initial investment may be around $220,000, plus estimated annual maintenance costs of about $25,000. This level of investment places this project, in principle, within the realm of large corporations. However, it remains to be seen how these costs will evolve in the future.
The process of obtaining a .brand domain name involves not only a significant financial investment but also advance strategic planning.
Among the main challenges are:
Therefore, rather than an isolated decision, this is an initiative that must be integrated into an overall brand and online presence strategy.
The launch of the new domain registration process represents a significant opportunity for companies seeking to strengthen their digital presence from a structural perspective.
.brand domains are not simply an alternative to traditional domain extensions, but a tool that allows companies to take greater control over their online identity, reduce risks associated with misuse, and build safer and more recognizable digital environments.
José Ignacio San Martín, Associate Partner in the Trademark Practice Group at Elzaburu.