Microsoft, the world’s largest software group, is stepping up its efforts to combat so-called “cybersquatters” with a series of lawsuits in the US and Europe.

Cybersquatting is a form of online fraud where people register internet domain names that are similar to popular brands in the hope that other internet users will visit their websites through typing errors.

The cybersquatters then either attempt to sell the domain names back to their rightful owners or fill the counterfeit websites with adverts that they earn money from if internet users click on them.

In a statement this morning, Microsoft said it had launched or amended four lawsuits in the US and launched five in the UK.

Aaron Kornblum, a senior Microsoft lawyer, said: "These sites confuse visitors who are trying to reach genuine company websites, which can negatively affect corporate brands and reputations as well as impair the end-users' experience.”

"With every advert hyperlink clicked, a registrant or ad network harvests cash at the trademark owner's expense, while derailing legitimate efforts by computer users who are trying to go to a specific website."

Microsoft said that in addition to the nine lawsuits announced today, it was also considering launching several further cases across Europe.

“We hope that our stance and activity on this issue will help motivate and empower other companies whose brands are abused to take action,” Mr Kornblum said.

Microsoft also announced a settlement with the Dyslexic Domain Company Limited, a UK business alleged to have engaged in cybersquatting activities, for an undisclosed sum.

Clive Gringras , a partner at Olswang who is representing Microsoft in its UK cybersquatting cases, said: Trademark legislation around the world and, in particular, the UK’s Trade Marks Act (1994) makes clear that cybersquatting is an infringement.

“But until the internet advertising industry takes a more responsible attitude towards cybersquatters, we fear this practice will continue. In the meantime, brand owners should act to prevent online fraudsters profiting from their good name.”

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