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Verizon wins largest-ever cybersquatting damages

Michelle Meyers CNET News

Published: 29 Dec 2008 08:34 GMT

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A federal court in Northern California has awarded $33.15m to Verizon Communications in what the company is calling the largest cybersquatting judgement ever.

Verizon, which announced the judgement on Wednesday, had filed the case against OnlineNIC, a San Francisco-based internet domain registration company. OnlineNIC used 663 internet names that were chosen to be easily confused with legitimate Verizon names, according to Verizon.

It may prove difficult, however, for Verizon to actually collect on the judgement, which was a default ruling, or one entered against a defendant who fails to answer a summons. No-one appeared in court on OnlineNIC's behalf or in its defence, Verizon said.

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Attempts to contact OnlineNIC by phone were unsuccessful, and an email request was not immediately answered. The company claims on its website that it's an Icann-accredited registrar, but only from 1998 to 2006. The site also offers a mailing address in Oakland, California, not San Francisco.

The award amount was calculated based on $50,000 per domain name, Verizon said.

"This case should send a clear message and serve to deter cybersquatters who continue to run businesses for the primary purpose of misleading consumers," Sarah Deutsch, Verizon vice president and associate general counsel, said in a statement. "Verizon intends to continue to take all steps necessary to protect our brand and consumers from internet frauds and abuses."

Verizon, which said it has won a string of similar cases, is part of a not-for-profit coalition, founded last year, that fights cybersquatting.

Credit: Verizon awarded 'largest-ever' cybersquatting judgment from CNET News

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