According to a recent study by the domain management and brand protection company Corporation Service Company (CSC), more money is being spent on reclaiming domain names from third parties through the Uniform Domain Name Dispute Resolution Policy (“UDRP”) than if brand owners had registered the domains proactively.

Under the study, all UDRP cases filed between January 2000 and May 2009 with the two major UDRP providers were analyzed.  The study found that more than $220 million was spent on UDRP proceedings in the period, but proactive registration of domain names would have cost only $1.1 million – a potential savings of $219 million.

Interestingly, CSC’s study indicates that of the domains that were reclaimed by brand owners, almost 4,000 have been subsequently lapsed and are available again for registration.  As well, apparently 3,000 domains that were reclaimed lapsed and then were re-registered – sometimes by third parties.

The results of the study underscore the importance of proactive registration and brand management in saving both time and money.