Verizon wins $33 million in Cybersquatting case

By TechnoGadge on December 28, 2008 at 5:49 am

A US court has awarded US telecom firm Verizon Communications $33.15 million in a case in which an Internet domain registration company tried to take advantage of Verizon and Verizon customers by using domain names chosen to be easily confused with legitimate Verizon names. This is the largest cybersquatting judgment ever made.

Verizon Communications

A federal court in the Northern District of California issued a default ruling against Online NIC for unlawfully registering at least 663 domain names that were identical or similar to Verizon trademarks. In a press release, Verizon said that it filed a case against Online NIC, because it had tried to take advantage of customers by registering any name which might be accidentally typed by users.

The court concluded that Online NIC had acted in bad faith, and calculated the award of $33.15 million, based on $50,000 per domain name owned by OnlineNIC. Neither OnlineNIC nor counsel representing the company appeared in court and so the Judge gave Verizon Communications what it wanted.

“This case should send a clear message and serve to deter cybersquatters who continue to run businesses for the primary purpose of misleading consumers,” said Sarah Deutsch, Verizon vice president and associate general counsel. “Verizon intends to continue to take all steps necessary to protect our brand and consumers from Internet frauds and abuses.”

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