Cybersquatting violates intellectual property (IP) rights and is subject to legal action under UAE Laws. It is an act of registering, selling, or using a domain name that is similar to or resembles that of an owned trademark without permission. This practice can cause great harm to businesses through client confusion and damage to the image of the brand.
The UAE has very strong laws in place to protect trademarks and combat cybersquatting. Businesses must find out about these laws to protect and secure their trademark and domain names.
Also read: Trademark Dispute in UAE
What is Cybersquatting?
Cybersquatting, also known as domain squatting, is an act of registering, selling, or using a domain name that closely resembles a trademark without seeking any prior permission. Usually in cybersquatting, the domain name has been registered and is being used in bad faith.
The purpose behind such an act is to demand money from the actual owner of the trademark to relinquish the domain or use it to deceptively direct customers to another website. This leads to brand dilution and, in some cases, financial losses to the owner of the branded product.
Types of Cybersquatting
- Typosquatting: This is the act of purchasing a domain name that is very similar to a given brand (for instance, ‘goolge.com’ as opposed to ‘google.com’).
- Identity Theft: Using a domain that is similar to a brand to direct clients to the wrong website to make them give their personal information.
- Trademark Infringement: Using a domain name that includes a trademark to take advantage of the brand’s goodwill.
- Extortion: Acquiring domain names of various organizations and requesting the rightful owners to pay for them to transfer the domain names to them.
UAE Laws Against Cybersquatting
The UAE has very strict laws when it comes to cybersquatting. The main laws that govern cybersquatting and trademark protection include:
UAE Trademark Law (Federal Decree-Law No. 36 of 2021)
- This law guarantees the registration of trademarks in the UAE.
- It is illegal to use a trademark without the owner’s permission.
- The company can file a report if its brand name is used in a domain name improperly.
UAE Cybercrime Law (Federal Decree-Law No. 34 of 2021)
- Although the UAE Cybercrime Law, under Federal Decree-Law No. 34 of 2021, does not precisely use the word “cybersquatting,” it enumerates various actions that amount to the same and, in essence, deals with issues of bad-faith registration and use of a domain name.
- The law covers cybercrime including cybersquatting.
- This law punishes people who purchase domain names to direct clients to the wrong websites or extort money from business organizations.
According to the UAE Cybercrime Law, “Whoever creates a fake website, an account or an email and attributes it falsely to any natural or legal person shall be punished with imprisonment and/or a fine of not less than (AED 50,000) fifty thousand dirhams or more than (AED 200,000) two hundred thousand dirhams”.
- Violation of cybercrimes, including trademark infringement through internet use, attracts fines and imprisonment.
TDRA Regulations on Domain Name Registration
- The UAE Telecommunications and Digital Government Regulatory Authority (TDRA) is in charge of the .ae domain name registration.
- It is not permitted to register domain names that are similar to trademarks.
- Anyone who owns a trademark can report domains that have been registered to harm the company.
According to the TDRA, if you believe a .ae or .امارات domain name infringes your rights, for example, your brand name or trading name, then .aeDA has developed the UAE Domain Name Dispute Resolution System (DNDRS).
Also read: How to Register a Brand Name in UAE
Cases are then resolved by an impartial legal expert specialized in this domain, with such proceedings under the WIPO Arbitration and Mediation Center. Otherwise, a case could be opened before any of the UAE judicial Authorities. Most times, though, cases may be amicably resolved with mediation well before the need to involve an impartial legal expert is required for judgment.
The Executive Regulations of the UAE Trademark Law (Cabinet Resolution No. (57) of 2022 Concerning the Executive Regulations)
- These regulations provide for the enforcement of the trademark laws and regulations.
- They include measures to prevent unauthorized use of trademarks including measures on domain name disputes.
How to Protect Your Trademark from Cybersquatting in the UAE
Register Your Trademark
- Apply for your trademark at the UAE Ministry of Economy.
- This gives you a right to file a complaint and go to court if cyber squatters are using your trademarks.
Secure Your Domain Name
- Get all the domain names that are associated with your brand.
- It is also advised to go for other top-level domains like .ae, .com, .net, and .org to avoid cybersquatting.
Monitor Domain Registrations
- It is recommended to check for the use of a domain that is related to your trademark.
- There are domain monitoring services that can help you monitor for any possible violations.
Report Cyber squatters to the Police
- Inform the UAE Ministry of Economy if you notice that your trademark is being used without your permission.
- Your lawyer can help you file a Uniform Domain-Name Dispute-Resolution Policy (UDRP) report if needed.
- If all the other solutions fail, it is possible to file a lawsuit based on the UAE Cybercrime Law and the Trademark Law.
Filing a Cybersquatting Complaint in the UAE
If someone has taken a domain name that is similar to your trademark, then you should do the following:
- Gather Evidence: Get the proof that the domain is violating your trademark rights.
- Send a Legal Notice: Request the domain owner to kindly forward the domain name to you.
- File a Complaint with the UAE Ministry of Economy: If the owner still does not comply, then proceed to the next step.
- Use the UDRP Process: If the domain was registered with international domains (.com, .net, etc.), then you can go for the UDRP process.
- Take Legal Action in UAE Courts: If all the other methods are not effective, then legal action can be taken under the UAE Cybercrime Law and Trademark Law.
Effects of Cybersquatting in the UAE
Cybersquatting is a criminal activity in the UAE and strict measures have been put in place to penalize cyber squatters. The penalties for cybersquatting include:
- Fines (The amount of the fine depends on the level of the infringement).
- Seizing the domain name and giving it to the actual owner of the trademark.
- In some cases, criminal penalties may include imprisonment.
- Other business restrictions such as being prohibited from doing business in the UAE market.
How Farahat & Co. Can Help You
It is crucial to defend your brand online. At Farahat & Co., we offer services that help businesses protect their trademarks against cybersquatting. We offer services in:
- Trademark Registration: We assist with protecting your brand in the UAE through legal processes.
- Domain Name Disputes: We assist in recovering your domain names from cyber squatters.
- Legal Representation: We provide support in the legal processes of cybersquatting cases in the UAE.
If you need brand protection, then contact Farahat & Co. today.
