What is domain squatting?

Domain squatting, also known as cybersquatting, is the practice of registering, holding, or using a domain name in bad faith with the intent to profit from someone else's trademark or brand. Domain squatters often target well-known trademarks, company names, or popular phrases in the hope of:

1. Reselling the domain at a higher price: Domain squatters might register a domain closely related to a trademark or brand, anticipating that the trademark owner or a third party will want to buy the domain, enabling the squatter to sell it at a profit.

2. Profiting from advertising revenue: Domain squatters can monetize their domains by displaying ads or using pay-per-click services, benefiting from the traffic generated by users mistyping or misremembering a legitimate domain name.

3. Misleading visitors for fraudulent activities: In some cases, domain squatters might create a website on the domain that looks similar to a legitimate site, attempting to deceive visitors into disclosing sensitive information, like usernames, passwords, or credit card details.

Domain squatting is considered an illegal and unethical practice in many jurisdictions. The Anticybersquatting Consumer Protection Act (ACPA) in the United States and the Uniform Domain Name Dispute Resolution Policy (UDRP) implemented by the Internet Corporation for Assigned Names and Numbers (ICANN) are examples of legal frameworks designed to combat domain squatting and help trademark owners protect their rights.

If you're a trademark owner and believe someone is squatting on a domain related to your brand, you may pursue legal action or initiate a dispute resolution process through ICANN's UDRP to regain control of the domain.