The Anticybersquatting Consumer Protection Act (ACPA) protects individuals and businesses from others who profit from domain names or internet brands commonly used by a business or brand. It also protects businesses from confusion caused by similar domain names. The act does not automatically exclude the use of a domain name for another individual or company, but damages may be awarded to the offended party if a breach is found to have occurred.
The Anticybersquatting Consumer Protection Act, also known simply as the ACPA, is a computer law in the United States that essentially protects individuals and businesses against others who wish to profit from a domain name or Internet brand commonly used by a business or a brand. Before the enactment of the ACPA, the bad faith practice of registering the domain name of a popular company or brand and then attempting to sell it to a company that usually does business under that name was commonplace. In some cases, the domain name has not been offered for sale, but the registrant has still attempted to profit from using the name in other ways, such as Internet advertising or other promotions. In other cases, a domain name was not an exact match, but may have been registered on purpose as a common misspelling of the name or in some other form that may have intentionally caused consumer confusion.
Much like the Federal Trademark Dilution Act in the United States, which prohibits one person or company from using a trademark in a way that tarnishes or dilutes another company’s brand, the Anticybersquatting Consumer Protection Act also protects businesses from the confusion that can be caused by similar domain names. A magistrate must make the final decision as to whether or not there is damage, but the writ gives a business reason to go to court if it believes a domain name causes confusion with another name or domain name used by such company or a nickname by which the company is commonly known. The Anticybersquatting Consumer Protection Act not only provides protection for business owners in this way, but also attempts to provide protection for consumers who may, unknowingly, engage in business with a clutter-based company.
The act does not automatically exclude the use of a domain name for another individual or a company. In cases where it can be shown that a name was in use prior to the popularity of a complaining company, a magistrate can rule in favor of the original body that registered the name. On the other hand, at the discretion of a judge, a name that has previously been used may be removed if it is determined that the use of the name is causing harm to a business also operating under that name or nickname. The Anticybersquatting Consumer Protection Act, however, largely refers to incidents where a name is misused and abused for the sole purpose of profit.
Under the Anticybersquatting Consumer Protection Act, if a breach is found to have occurred, damages may be awarded to the offended party(ies). Monetary costs up to $100,000 US Dollars (USD) may be assessed. If a violation of the Anticybersquatting Consumer Protection Act is proven, the offended party can also seek reimbursement of costly attorneys’ fees.
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