The growing number of cybersquatting disputes reflects the premium businesses are placing on domain names and their potential for facilitating electronic commerce. By using trademarks as their domain names, businesses hope to attract potential customers to their web sites and increase their market visibility. Domain names are now used routinely in advertising as a means of indicating the presence of an enterprise on the Internet. With the growth of the Internet, domain names have increasingly come into conflict with trademarks. The possibility of such conflict arises from the lack of connection between the system for registering trademarks, on the one hand, and the system for registering domain names, on the other hand.
Domain names offer a global presence on the Internet.
Intellectual property rights owners and people who register domain names in good faith have welcomed the UDRP as a cost-efficient and speedy alternative to litigation.