Cybersquatting is the bad-faith registration or use of a domain name that is identical or confusingly similar to another party's trademark, brand or personal name, typically to sell it at a high price, divert traffic or damage the owner. Typosquatting is a related technique that depends on misspellings.
Why it matters
A brand owner may find the obvious domain already taken by someone else. Dispute processes exist, such as ICANN's UDRP for gTLDs and national equivalents for country domains, and some countries also have specific laws. Outcomes depend on proving rights in the name, the registrant's lack of legitimate interest and bad faith. Rules vary by country, and this entry is a definition, not legal advice.
Example
A startup launches as "Brightly", but brightly.com is held by an unrelated party who registered it after the company filed its trademark and offers to sell it for a large sum. Whether this counts as cybersquatting depends on the timing, intent and use, not simply on the asking price.
Common mistakes
- Assuming any owner of a desirable name is a cybersquatter. Registering a generic word first is often legitimate.
- Waiting years to act, which can weaken a claim.
- Overlooking cheaper options such as negotiating through a broker.
Related
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