Cybersquatters see opportunity in Dubai projects

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Dubai projects are attracting cybersquatters from all over the world who are blocking domain names for various schemes in the emirate.

The Arabian Canal project seems to be the latest victim of the fast-growing phenomenon of cybersquatting as most of the possible options for a domain name are already taken and blocked.

In fact, one of the squatters is running an active web portal with the name www.arabian-canal.com and prominently flashes the selling price for the domain at $89,500 (Dh328,733). The website is fully operational with pictures and information and an archive of press releases on the subject. The site also has active links to related websites in the Middle East and Europe. The commercial website has attracted advertisements under Google administration.

When contacted, the website generated no response and claimed to send the query to the relevant section of the web host. The site is designed and hosted by www3.czDesign & Hosting.

Limitless, which is responsible for building this largest man-made canal in New Dubai, categorically denied any connection or interest in the website.

"This website is in no way connected to our project and we are in fact in the process of launching our own portal on the project in the near future," explained Rebecca Rees, Corporate Media Relations Manager for Limitless.

Sources at Limitless refused to reveal the possible portal name. However, a quick research on the net revealed that squatters have taken most of the popular options including arabiancanal.com, arabiancanal.info and arabiancanal.net. These portal addresses are not operational and indicate availability for possible sale.

The Arabian Canal is the largest development project by Limitless and will be world's longest man-made canal at 75km long. Excavation will start near the Dubai Marina area, flow inland around the massive area for the planned Jebel Ali International Airport, and wind its way to enter the sea once again at the outer end of The Palm Jebel Ali.

"In the absence of any formal legislation - local or international - squatters have in fact become quite a nuisance for legitimate businesses and compelling them to look at alternatives," said Danish Zarwan, a technical professional from a Dubai Internet City-based company.

Cybersquatting is a by-product of the World Wide Web from almost the same time the internet became a household name. Early squatters made quick money from blocking names of large establishments, if they were slow to register their presence on the net. British novelist Jeanette Winterson was in fact one of the first persons to get back her "kidnapped" name after she threatened to take the squatter to court.

Mark Hogarth had registered hundreds of uniform resource locators (URLs) bearing the names of famous writers. His plan was to set up a string of websites that would redirect users to Amazon and cream commission off any books bought.

But his downfall came when he tried to sell a number of URLs to the authors themselves, asking for around three per cent of their 1999 gross book sales.

Reacting to the demands of Hogarth, Winterson said she was preparing to take the cybersquatter to court to get her name back. She eventually took her complaint to the World Intellectual Property Organisation (WIPO) Arbitration and Mediation Centre, which ordered Hogarth to give jeanettewinter-son.com, jeanettewinterson.net and jeanettewinterson.org to the author.

Here in the UAE, large establishments have been often approached by cybersquatters with the intention of making a quick buck by selling them domain names.

MTV Arabia also seems to have been blocked by an ambitious cybersquatter who demanded £200,000 (Dh1.32 million) for the domain name mtvarabia.com. Eventually the establishment refused to entertain the request and went for mtva.com.

HOW CYBERSQUATTING WORKS

Cybersquatting is referred to as registering, trafficking in, or using a domain name with bad faith intent to profit from the goodwill of a trademark belonging to someone else, according to the United States Federal Court. The cybersquatter then offers to sell the domain to the person or company who owns a trademark contained within the name at an inflated price.

The term is derived from "squatting", which is the act of occupying an abandoned or unoccupied space or building that the squatter does not own, rent or otherwise have permission to use. Cybersquatting however, is a bit different in that the domain names that are being "squatted" are (sometimes but not always) being paid for through the registration process by the cybersquatters.

Cybersquatters usually ask for prices far greater than that at which they purchased it. Some cybersquatters put up derogatory remarks about the person or company the domain is meant to represent in an effort to encourage the subject to buy the domain from them. Others post paid links and advertising networks to the actual site that the user likely wanted, thus monetising their squatting.

As with many controversial issues, some argue that the dividing line in cybersquatting is difficult to draw, or that the practice is consistent with a capitalistic and free market ethos.

Cybersquatting is one of the most loosely used terms related to domain name intellectual property law and is often incorrectly used to refer to the sale or purchase of generic domain names.

By Vigyan Arya

© Emirates Business 24/7 2008