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Registering an Internet domain name that sounds similar to a widely known company or product. For example, if were a popular clothing site, a cybersquatter might register and hope to rank high on a search engine's results page, also by including related words in the hidden tags of its Web pages. The site might sell a competitive product or make money from ads (see domain parking).

Instead of registering similar-sounding names, cybersquatters might register the common misspellings of popular domain names (see URL hijacking).

Anti-Cybersquatting: ACPA and UDRP
In 1999, the U.S. government passed the Anti-Cybersquatting Consumer Protection Act (ACPA), which enables trademark holders to obtain civil damages up to USD $100,000 from cybersquatters. While not directly outlawing cybersquatting, it was an attempt to improve the situation.

Also in 1999, ICANN created the Uniform Domain-Name Dispute-Resolution Policy (UDRP) to resolve cybersquatting disputes. If not resolved, trademark holders may still take legal action under ACPA. For more information, visit See URL hijacking, page hijacking and domaining.
References in periodicals archive ?
The new TLDs create new opportunities for cybersquatters (who register others' trademarks) and typosquatters (who register misspellings of others' trademarks).
If the complainant proves that a cybersquatter used bad faith in registering a domain name that is identical or confusingly similar to the complainant's trademark, the domain name will be canceled or transferred to the complainant.
NSI's DND policy allows cybersquatters to act because NSI does not investigate the cybersquatter to check on how the cybersquatter intends to use the domain name.
Competitors, pornographers and extortionists, known in some contexts as cybersquatters, all have an interest in registering other businesses' names and trademarks as their domain names.
Per the decision, a California-based cybersquatter was ordered to remit to the World Wrestling Federation (Titan Sports) the domain name world wrestlingfederation.
Having a trademark listed in the IP Clearinghouse wouldn't prevent a registry from selling the name in one of the new extensions, but it would be useful to the trademark owner in battling a cybersquatter using ICANN's uniform dispute resolution policy (UDRP).
In short, a cybersquatter is someone who registers a domain name that someone else, usually a company or celebrity, could justifiably lay claim to.
James Bond star Pierce Brosnan was shaken but not stirred when a cybersquatter set up camp at the online address www.
It is quite clear that where there are examples of bad faith the cybersquatter will be obligated to give up the domain name.