Trademark Safety
Legal Guide
Dodging the UDRP Bullet
Domain investing is not cyber-squatting. Cyber-squatting is illegal. Investing is speculation on un-trademarked generic terms. Knowing the difference keeps you out of court and your portfolio safe.
What to Avoid (The Danger Zone)
Never register names that are confusingly similar to famous marks.
• Typo-squatting: Fbook.com (Illegal).
• Combo-squatting: TeslaCars.net (Illegal).
• Generic Match: ElectricCars.com (Perfectly Legal).
Even if you sell electric cars, you cannot use "Tesla" in the name. Trademarks protect the brand consumer from confusion.
UDRP Explained
The Uniform Domain-Name Dispute-Resolution Policy (UDRP) is the "court" of the domain world. A trademark holder can seize your domain if they prove ALL 3 points:
- Identical or Confusingly Similar: The domain matches their mark.
- No Legitimate Interest: You aren't known by that name and aren't using it for a bona fide offering.
- Bad Faith: You bought it specifically to sell to them for a profit (extortion).
Pro Tip: Buying a generic word like "Apple.io" is tricky. If you put a blog about fruit on it, you are safe (Generic use). If you put a tech or computer shop on it, Apple Inc. will take it (Confusing use).
Tool Check
Before registering any brandable name, search the USPTO TESS database (USA) and WIPO Global Brand Database (International). Spending 5 minutes searching can save you thousands in legal fees.