Verizon Sues iREIT for Alleged Cybersquatting

Verizon, the phone giant, has filed a federal lawsuit accusing Internet REIT, one of the world’s largest investors in domain names, of massive cybersquatting and trademark infringement.

The suit, filed in iREIT’s hometown of Houston, accuses the closely held company of operating more than 90 domains that are typographical variations of its trademarks, including,, and Verizon says iREIT has been displaying pay-per-click ads on the sites for various products that compete with Verizon’s. The phone company is seeking an injunction barring iREIT’s use of the names, as well as damages of $100,000 per name under the Anticybersquatting Consumer Protection Act, which was enacted in 1999.

The suit, filed March 23, also claims iREIT owns thousands of other domains corresponding to other companies’ trademarks, such as, and In addition, the suit claims iREIT has intentionally provided “material and misleading false contact information” when registering some of its names.

Bob Martin, the chief executive of iREIT, said in an email that “we are already in contact with Verizon representatives and plan to have a thoughtful response to them soon.” iREIT’s financial backers include Maveron LLC, a Seattle venture-capital firm co-founded by Starbucks Chairman Howard Schultz; Perot Investments, a Dallas investment company founded by billionaire and former presidential candidate H. Ross Perot; and Jacobson Family Investments, the investment vehicle of a wealthy New York Family.

Earlier this year, I first reported iREIT’s ownership of large numbers of Web addresses that correspond with major corporate trademarks, including those of Google, its paid-search advertising partner. iREIT, co-founded by Martin and Marc Ostrofsky, who’s famous for selling for $7.5 million in 1999, owns roughly 400,000 sites, including and

5 Responses to “Verizon Sues iREIT for Alleged Cybersquatting”

  1. 1 Chuck August 14, 2007 at 8:06 pm

    Verizon was also threatening lawsuits on individuals claiming that they were cybersquatting by owning domains like

    I hope iREIT wins and Verizon gets sued 5Billion for harassment

  1. 1 High End Web Names Blog » Verizon sues iREIT Trackback on April 6, 2007 at 10:15 am
  2. 2 Domain Name Wire » News » CitizenHawk Helps Companies Squash Typosquatting - The Domain Industry's News Source Trackback on April 23, 2007 at 12:09 pm
  3. 3 Verizon monetizes typo traffic | Dominik Mueller - Domain Name Brokerage and Consulting Trackback on November 5, 2007 at 2:26 pm
  4. 4 2007 The Year In Domain Name News » Domain Name News Trackback on January 3, 2008 at 5:47 pm

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