Here is a brief summary from National Arbitration Forum, along with links to this useful information from MarkMonitor.  This info is relevant to the debates around Domain Tasting and Protecting the Rights of Others.

Report Shows Cybersquatting is Increasing Substantially

MarkMonitor, a San Francisco-based company providing online brand and Internet fraud protection, released its first quarterly brandjacking report on April 30, 2007. The report details the increasing amount of cybersquatting – the term for the registration of a domain name that infringes upon or otherwise violates the rights of a trademark holder – and other brand use violations. MarkMonitor and some others in the industry are specifically referring to this as "brandjacking," in which Internet users infringe upon the registered trademarks of businesses in order to advertise their own products. The concern of most trademark holders is that these violations potentially lead to brand dilution of the products and services that they market under their trademarks.

The report, based on an examination of twenty-five of the world's strongest brands over a four-week period, indicates that cybersquatting increased by 248% in 2006. MarkMonitor's study "found more than 286,000 instances of cybersquatting for the 25 brands it studied," averaging 11,400 instances per brand. Well-trafficked media websites, which constituted 31% of the reported instances, as well as financial services websites, appear to be the most attractive targets of cybersquatters.

Similar results were found when looking at other types of violations, including phishing, tasting (also known as kiting), and pay-per-clicks. Financial institutions are significantly impacted by both phishing and kiting; they represent 41% of all phishing instances and constitute the majority of all documented tastings. The report indicated that pay-per-click sites alone have provided about $125 million in profits to "cyber crooks."

The increase in domain name disputes handled by alternative dispute resolution institutions such as WIPO and the National Arbitration Forum ("FORUM") also support MarkMonitor's findings. In 2006, the FORUM's domain name dispute caseload increased by 21%.

The results of MarkMonitor's report indicate a real concern for businesses trying to protect their trademarks on the Internet. Specifically, these cybersquatting, phishing, tasting, and pay-per-click practices are leading to losses of revenue and advertising costs, and false association of brand names and products. As an initial defense, Internet browsers Firefox and Internet Explorer have attempted to block phishing attempts by inhibiting Internet users from accessing these sites. While the global efforts being made by Mozilla and Microsoft are laudable, businesses are ultimately encouraged to pursue individualized methods of protection, such as careful domain name monitoring, or contacting a specialist IT outsourcer for further assistance.

Mike Rodenbaugh

Sr. Legal Director

Yahoo! Inc.

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