Google Making Money off Typos

Posted Feb 18th 2010 1:30PM by Mark Fightmaster
Filed under: Google (GOOG)

A new study shows that Google (GOOG) may be profiting from typosquatting, NewScientist's Tech page reports. Typosquatting is the act of registering or using a domain name with bad faith intent to profit from someone else's trademark. Typosquatting is when someone registers a domain name, hoping for typos from those looking to go to certain domains. This action is based on common misspellings, typing errors, a different domain name, or a different top-level domain.

Here is the thing about typosquatting, if people make a mistake enough times, the typosquatter could profit thanks to ads placed on their page. How many times have you accidentally typed a domain name that is a letter off of the original? Or what about a flat-out typo? You are sent to a page that looks like a search page, except that it has sponsored ads that will make the site money if you follow the link. What is interesting is that Google may also be profiting from this.

Tyler Moore and Benjamin Edelman from Harvard estimated that Google has sponsored ads on nearly 60% of typosquatters' sites. Combine this with the fact that as many as 68 million people hit a typosquatter site per day and Google could earn $497 million per year from typo domains, according to the duo's research.

Is this legal? Yes. Google told NewScientist that it will remove ads from typosquatter sites if the owners of the trademarked site complain. It should be noted that Edelman is co-counsel on a lawsuit from a firm that is seeking damages from Google because its advertisements were on a typo domain that targeted a claimant's website.

What do you think -- is this practice ethical? Does this practice raise some interesting moral questions? For what it is worth, Edelman tells NewScientist that he is "not doing it for the money ... I'm doing it because it is important." I bet Google and the typosquatters may argue the point.

Tags: cybersquatting, goog, online ads, online advertising, typosquatting

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Reader Comments (Page 1 of 1)

2-20-2010 @ 12:07AM

Paw2Hand said...

I'm fine with it given "sponsored ads that will make the site money if you follow the link." That is the user's choice to follow a link. If the ad is of interest to the person, no problem to me with the page making money off the click.

2-20-2010 @ 12:24AM

Liz said...

As much as I don't care for "typo-squatting" wtf kinda name like that lol! I think they have every right to do as they please. Their targets if they have such a problem with it should have bought the "typo" name as well & wouldn't have to worry about it. Now they are filing a lawsuit? Bunch of freakin whiners!