Cybersquatting is illegal only if a domain name is identical to the trademark of another, not if the name is merely confusingly similar.

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The statement asserts that cybersquatting is illegal only when a domain name is identical to someone’s trademark and not if it is merely confusingly similar. In reality, this is not correct.

First, it is possible for a domain name that is confusingly similar to a registered trademark to be actionable under U.S. law. Laws such as the Anticybersquatting Consumer Protection Act (ACPA) allow trademark owners to sue for cybersquatting when a domain name is the same as, or confusingly similar to, a famous or distinctive mark and is used with bad faith intent to profit.

Second, even if the domain name is not identical to the trademark, the overall likelihood of confusion, consumer deception, or bad-faith intent can still establish liability. Courts look at factors like the similarity of the marks, the similarity of the domain name, theBad Faith intent, and the domains’ use.

Third, the claim that cybersquatting requires identicalness ignores that many cases hinge on confusing similarity, consumer confusion, or intent to profit from the mark, all of which can violate trademark or cybersquatting statutes.

Fourth, there are other frameworks beyond ACPA, including Lanham Act defenses, that recognize that confusing similarity can be legally problematic even without an exact match.

In summary, the statement is false because cybersquatting can be illegal not only when a domain name is identical to a trademark but also when it is confusingly similar, provided other legal elements (like bad faith intent and likelihood of confusion) are satisfied.

2255-E_34BLAW2080004 Chapter 9 Quiz

Cybersquatting is illegal only if a domain name is identical to the trademark of another, not if the name is merely confusingly similar.

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