Why would someone register a domain name that clearly infringes on a trademark? Because sometimes they get lucky.

In the world of domain name investing, seasoned investors have repeatedly warned novices to avoid registering domain names that clearly infringe on trademarks. I'm not referring to domain names that can be modified slightly, but those that are purely infringing. However, despite these warnings, some investors still take the risk because sometimes, they do get lucky.

The “Lucky” Story of Trademarked Domain Names

In January of this year, MasterCard International filed a trademark application for “MasterCardBiz360.com”. The application has now been published and is subject to an opposition period, which begins on the date of publication and ends on August 27th.

Shortly after MasterCard's trademark application was published, an investor registered the .com domain name “MasterCardBiz360.com” through Dynadot in February. The domain name was successfully sold in July for $4,995 and is currently owned by CSC CORPORATE DOMAINS, INC.

mastercard.com

This type of incident reveals an interesting phenomenon: while registering domain names that clearly infringe on trademarks is often considered risky behavior, it does sometimes lead to unexpected financial rewards. Investors in such cases may feel that they have “rolled the dice” and won the jackpot. However, this kind of “luck” is uncommon and relatively risky.

Risks and Rewards

Registering a domain name that infringes on a trademark not only involves legal risks, but may also have a negative impact on business reputation. Trademark holders have the right to take legal action to stop the infringing behavior and may be able to recover damages. This means that while there may be financial gains in the short term, the risk of facing a legal dispute will likely lead to greater losses in the long run.

Therefore, although sometimes registering a trademarked domain name may bring “good luck”, domain name investors should still be cautious about this behavior. Choosing a compliant domain name investment strategy will not only help to avoid legal trouble, but also maintain the investor's good reputation.

In conclusion, while there are occasional windfalls from registering infringing domain names, this strategy should not be encouraged. Investors should take a rational view of the potential rewards and risks, avoid risky behavior and adopt a more prudent investment approach.