Cyber squatting is on the increase, according to a report from the World Intellectual Property Organisation (WIPO).

In 2006 disputes arising from appropriated domain names increased by 25 per cent compared with 2005. In addition, said the report, the growth of the domain name registration system is causing growing concern for trademark owners.

Particular issues include the use of computer software to automatically register expired domain names and their 'parking' on pay-per-click portal sites, the option to register names free-of-charge for a five-day 'tasting' period, the proliferation of new registrars, and the establishment of new generic top level domains (gTLDs).

The combined result of these developments is to create greater opportunities for the mass, often anonymous, registration of domain names without specific consideration of third-party intellectual property rights.

According to Francis Gurry, WIPO deputy director general, recent developments in the domain name registration system have fostered practices which threaten the interests of trademark owners and cause consumer confusion.