What Is ACPA (Anti-Cybersquatting Consumer Protection Act)?
The ACPA (Anti-Cybersquatting Consumer Protection Act) is a US federal law enacted in 1999 that provides trademark owners with a legal remedy against cybersquatters — people who register domain names in bad faith to profit from someone else's trademark.
Under ACPA, a trademark owner can sue in US federal court and potentially recover the domain name plus damages of up to $100,000 per domain. The law considers factors like whether the registrant had trademark rights, intended to divert customers, or offered the domain for sale to the trademark owner.
ACPA differs from UDRP in important ways: ACPA is a US court proceeding (with potential monetary damages), while UDRP is an international arbitration process (limited to domain transfer or cancellation). ACPA cases tend to be more expensive and time-consuming but offer stronger remedies.
Why This Matters for Startups
Understanding ACPA helps you in two ways. First, as a domain buyer, it protects you from cybersquatters holding your brand name hostage. If someone registers YourStartupName.com in bad faith after hearing about your company, ACPA gives you legal recourse. Second, as a domain registrant, it reminds you to avoid registering domains that are clearly someone else's trademark — the consequences can include significant financial damages.
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