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Before the huge explosion of the Internet, obtaining a domain name used to be simple. However, several issues have developed concerning these names. Prior to the Internet gaining popularity, there was an activity that was being performed by “squatters” wherein a huge list of domain names were registered which may be similar to major companies and/or products. As these companies started to develop their websites, there were oftentimes required to go to these squatters to purchase the rights to use their own company’s name.

In 1999, ICANN (Internet Corporation for Assigned Names and Numbers) implemented regulations for domain name registrations, as well as putting into place a dispute process for trademark and name infringement.

Presently, people wishing to register domain names must give accurate and proper information. In addition, a domain name that may infringe on another parties rights cannot be registered. A registrant who does register a name that infringes on another’s trademark or copyright, may be open for formal complaints and proceedings.

Purchasing domain names that may match a trademark and then attempting to sell that name to the trademark holder for profit may be considered “bad faith.” Bad faith is also represented by registrants who show squatting patterns by registering numerous domain names in order to resell or keep them from the actual copyright holders.

If a domain name holder receives a complaint, he or she must prove that there is a true and verifiable commercial use of that name. It must also be proved that the name was not acquired to be resold.