Mr. S, a businessman and information technology practitioner, claimed to have devised an innovative business model. He would diligently compile a list of known personalities and entities in the fields of entertainment, arts, culture, and sports, and acquire numerous domain names in the internet using the names of these known personalities and entities for the purpose of selling these registered domain names to said personalities and entities in the future.
Does Mr. S’s “innovative business model” expose him to any criminal liability under the Cybercrime Prevention Act of 2012? If so, for what crime? Explain. (2.5%)
Suggested answer only. Not an official answer and not legal advice.
Yes, Mr. S's "innovative business model" exposes him to criminal liability for Cybersquatting under Section 4(a)(6) of R.A. No. 10175. Under Section 4(a)(6) of R.A. No. 10175, Cybersquatting is committed by acquiring a domain name over
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Quick check
What offense is committed under RA 10175 by registering internet domain names of famous personalities in bad faith to resell them?
Registering domain names of famous personalities in bad faith to resell them constitutes Cybersquatting under RA 10175.
Which element must concur to establish the crime of Cybersquatting under Section 4(a)(6) of RA 10175?
Cybersquatting requires acquiring a domain name in bad faith to profit, mislead, or deprive others.
Under Section 4(a)(6) of RA 10175, what relationship must the registered domain name have to the victim?
The domain name must be identical or confusingly similar to the name or mark of another.
Does an IT practitioner commit Cybersquatting if he buys famous domain names without prior authorization to sell them back for profit?
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What law penalizes the bad-faith registration of internet domain names in the Philippines?
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Learn more about these topics
1. Cybersquatting Definition
Under Section 4(a)(6) of Republic Act No. 10175, or the Cybercrime Prevention Act of 2012, cybersquatting is defined as the acquisition of a domain name over the internet in bad faith to profit, mislead, destroy reputation, and deprive others from registering the domain name. To constitute cybersquatting, the registered domain name must be identical or confusingly similar to a trademark, name, or mark of another registered person, entity, or personality, and acquired without any right or legitimate interest.
2. Bad Faith Intent
The legal element of bad faith in cybersquatting is demonstrated by acquiring domain names corresponding to well-known personalities, trademark holders, or commercial entities without legitimate authorization or prior rights. Registering internet domain names solely for the ulterior purpose of reselling, renting, or transferring them to the lawful owners or third parties for financial profit or commercial extortion constitutes bad faith under the law.
3. Penalties Under Law
Section 6 of Republic Act No. 10175 imposes higher penalties for crimes defined under the Revised Penal Code and special laws if committed by, through, and with the use of information and communications technologies. For cybersquatting, the law imposes imprisonment or a substantial fine, reflecting the grave statutory objective to protect cyber domain integrity, intellectual property rights, and online consumer trust against predatory registration schemes.