Direct Navigation

Purpose

The Internet has changed greatly since its inception, and is arguably the fastest growing medium for the dissemination of information, communication, and global commerce. In addition to changes within the Internet landscape, there have been distinct changes in the behavior of Internet users. In order to use the Internet as effectively as possible, today’s brand owners must recognize the patterns in Internet behavior and browsing. The purpose of this paper is to closely examine the ways that users seek the content they are looking for and to identify the new and evolving set of problems facing brand owners who are trying to develop their online presence.

If Direct Navigation practices continue to grow and evolve, the value of domain names will increase in both actual price and intangible value to brands looking to portray a strong online presence. Naturally, not only brand owners, but also those who aim to disrupt e-Commerce and cause harm to companies can realize the value of domain names. Direct Navigation can be abused by cybersquatters (those who participate in the “bad-faith and abusive registration of distinctive marks as Internet domain names with the intent to profit from the goodwill associated with such marks”³) through two main methods: typosquatting and combosquatting.

Typosquatting refers to the practice in which domain name brand infringers (cybersquatters) try to monetize traffic generated by spelling mistakes of popular Web sites by registering these domain names. They then set up a pay-per-click advertising site at the domain that may point to the Web site that the user intended to visit, or simply offer links to related searches where sponsors are willing to pay a fee to receive a new visitor. Each time a user follows one of the links on the pay-per-click site, the cybersquatter receives money. Unfortunately, the owners of the intended site are often the ones to pay these fees in order for their customers to reach them. Worse still, brands cannot realistically choose not to bid on those particular keywords - that would put them at a greater disadvantage because they may lose the visitor altogether.

Combosquatting refers to a similar practice in which cybersquatters register combinations of brand names (or typos of brand names) and select keywords picked to generate traffic. They may use generic keywords, such as “creditcard” in “samsclubcreditcard.com,” or they may use keywords specific to the brand, such as “disneyplayhouse.com” (Playhouse Disney is a component of the Disney Channel geared towards preschoolers). After registering these sites, combosquatters will most often post a pay-per-click site in order to monetize the traffic. These sites allow combosquatters to make money in the same way that typosquatters do, at the expense of the brand owner.

Brands need to understand Direct Navigation and how cybersquatters can take advantage of this behavior so that they can create a targeted domain strategy that focuses on owning an optimal set of names that are top of mind for their Internet audience, and not a single name more. As cybersquatting becomes more profitable and technologically advanced, it is important for brand owners to take a proactive approach to brand protection by looking at enforcement options and monitoring the infringement based on the severity of its threat to the brand. If brands are able to effectively leverage Direct Navigation practices, the end result will be a more powerful online brand presence and tangible benefits to the brand itself.

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