Calling Someone a Domain Squatter Doesn’t Make You Right
I took my kids out to dinner one night to their favorite restaurant— Chili’s. My wife was busy that night, and they’ve got those video game things on the table. Father of the year could enjoy a few two-for-one beers while the kids played to their hearts’ content. We were in a booth, and during the commercials of the sports game I was watching, I started listening to the conversation at the table next to me.
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It was a middle-aged man sitting with his friend, discussing a new business idea. This is a conversation I’ve been part of countless times, so I was intrigued. Unfortunately, my eavesdropping was interrupted by one of my kids needing more chips and salsa, followed by our food arriving — but I came back in just in time for the best part…
I caught the friend asking, “Oh, is the domain taken?” The budding entrepreneur replied, “Good call, let me check.” I was on the edge of my seat. This was far more exciting than whatever game was on TV that Wednesday night. Imagine it was a Saw.com sales lander! Then came the inevitable:
“Shit, there’s a squatter on my name!”
At first, I was curious to hear the domain and maybe even offer my help. But for some reason, I got more delight just hearing that line. The conversation continued, and I eventually lost interest somewhere between my second Modelo Light and my kids’ mac and cheese arriving. But the seed had been planted. To those of us in the domain industry, this story is as old as time.
Business Ideas Don’t Create Ownership
A domain owner registers a name — either hand-registered or purchased (can you believe someone else wants a highly desirable domain?!) — and years later, someone else comes along wanting to build a business on that name . Suddenly, they believe they have more of a right to it than the original registrant. I’ve spoken to trademark attorneys about this countless times, and it leads me to ask them the same questions over and over:
Where do people get the idea that having a business idea gives them automatic rights to a domain someone else already owns?
Why do people assume that if a domain isn’t being “used,” that is reason enough to entitle them to it?
What makes people think that registering a trademark gives them the right to seize the matching domain name?
And most importantly — where are they reading this misinformation? What site or blog is teaching this? And who are the lawyers taking on these cases when they know their client has no shot?
Hopefully, this article can help people understand what a domain squatter actually is, what ownership rights look like, and what can be done in these situations?
If you’d like a deep dive into this topic, I wrote a detailed piece for Forbes that breaks it down with cases and examples:
👉 What You Can Do If A Squatter Is Sitting On Your Domain
But here’s the crash course: if you’re a buyer thinking someone is squatting on “your” name, or a seller being accused of squatting, slide into my booth at Chilis, and order yourself a two for one:
If you believe someone is squatting on a domain, you can file a UDRP (Uniform Domain-Name Dispute Resolution Policy). It typically costs a few thousand dollars. You submit your argument, the domain owner submits theirs, and then a panel or individual, depending on what is decided, makes a decision.
To win, you the “buyer” must prove three things:
- The domain is identical or confusingly similar to your trademark.
- The domain owner has no legitimate rights or interests in the domain.
- The domain was registered and is being used in bad faith.
Let’s rewind to that magical Chili’s moment — let’s assume those guys do have a trademark. Based on the UDRP rules, their argument might check the first box. The domain could be confusingly similar. But what about the other two? Let’s say the domain owner registered the name ten years ago — before this guy even had a business idea. And let’s say the domain has been listed for sale the whole time. Nothing deceptive. No bad faith.
That’s not squatting.
The Cassy.com Case
And this isn’t theoretical — this exact story recently played out with Cassy.com. We as a brokerage represented the owner, and we were included in this UDRP. Instead of having a discussion and allowing us (our client, us, and or their legal representative) to diffuse the situation and negotiate, the buyer filed a UDRP.
The owner of Cassy.com registered the domain in 1998. Years later, a French footwear brand launched under the name Cassy, got a trademark, and attempted to purchase the domain. When they refused even to make an offer, only to make demands, their attempts went nowhere. We made them aware of the who, when, and how, but they filed a UDRP anyway.
The panel ruled against the complainant and issued a finding of Reverse Domain Name Hijacking — a rare but serious ruling reserved for cases where the UDRP was abused. The complainant had tried to buy the domain years earlier and failed, then came back with a trademark and a UDRP, hoping to get it for free.
They lost because:
- The domain predated the company’s existence and trademark by over 20 years.
- There was no evidence of targeting or bad faith use.
- The domain owner had a consistent history of ownership and use.
So while Cassy.com was an ideal domain for that business, that didn’t mean they had the right to take it — or file a UDRP without solid legal grounds.
When someone approaches us and says, “I have a trademark that matches the domain,” we take that very seriously. Especially, when it comes with a threat. It’s always interesting when the person telling us about the trademark, along with a threat is using a Gmail address, with a name we can’t verify, and offer no proof of who they are.
When that happens, we ask questions:
Who are you?
What company do you represent?
What is the trademark registration number?
Are you even authorized to act on behalf of that company?
Once we get the trademark, we review it. Sometimes it’s brand new — registered a month ago. Other times, the trademark predates the domain registration. But even that doesn’t automatically entitle someone to the domain. Whether or not the trademark was minted today or ten years ago, this is when we immediately share this with the registrant. We aren’t lawyers and always ask if they want to contact their attorney or want to be introduced to one.
The trademark holder might have a strong argument. If that is the case it might be in their best interest to forfeit the domain.
Trademarks vs. Domains in the Real World
Delta Faucets.
Delta Dental.
Delta Tools.
They all have trademarks. Only one can own the domain — and yet they all have legitimate claims.
That ties into another thing we hear a lot: “I know I can’t take the domain from you, but now that I’ve trademarked the name, you shouldn’t be able to sell it to anyone else either… so give it to me cheap.”
Nice try.
I’ve had plenty of buyers say that — and then we sell the domain to a totally unrelated business in a completely different industry.
Advice for Buyers:
Don’t open with threats — Let the registrant know who you are, and your trademark information. If you are proven wrong and still want the domain the current owner may not act very kindly in return or even raise the price. Believe me, working for someone that owned 365,000 domains he did not mind raising the price hundreds of thousands to teach a lesson.
Don’t use the UDRP as a negotiation tactic. It’s unethical and often backfires.
If you’re hiring a lawyer, do it earlier rather than later in the process, and make sure to not only ask about their track record, but also check it yourself. If they’ve been hit with Reverse Domain Name Hijacking findings, or constantly lose, that’s a red flag. A big one.
Hire a domain broker to do some research and give you a consultation about the history, the domain, and the best direction you can take.
Advice for Sellers:
Don’t panic when someone mentions a trademark. Do your homework.
Don’t let aggressive emails get under your skin. What you write can (and will) be used against you. Our communications became an exhibit in the UDRP, and I can proudly say we performed quite well!
If you own a valuable domain and notice many related trademarks, it’s smart to consult a trademark attorney.
For example, with Cassy.com — even though the UDRP was ruled in the domain owner’s favor, if the current registrant were to suddenly post a shoe store on the domain, that could shift the situation toward infringement. Paying a reputable attorney a few hundred dollars to protect your investment is a smart idea.
In the end, this industry is full of nuance. Ownership, timing, use, and intent all matter. And sometimes, both parties think they’re in the right — because they genuinely believe they are.
But if you’re the person at Chili’s yelling “squatter” without knowing the backstory… you might be the one who’s out of bounds.
Founder & CEO of Saw.com, is a renowned domain broker with over $500M in sales, including record-breaking deals like Sex.com and Ai.com. In 2019, he left his dream job to start his own company, sharing insights and inspiring others to push their limits through candid conversations with industry leaders.
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