Cybersquatting is the term used for business conducted on the Internet that involves registering or acquiring registered domain names. There is a debate amongst experts about the legality of this type of business. Some believe it is legitimate while others argue that it is illegal.



The process of cybersquatting involves searching for domain names that will be valuable to entrepreneurs entering the online market, or those already engaged in business but looking to expand their reach, with the intention of selling them for a profit. The domain names should not be currently occupied by another user and ideally have some semantic relevance.

There are several types of cybersquatting including industry-specific, geographical, branded and registered, and type squatting. Industry-specific cybersquatting involves registering domain names related to specific industries or goods. Geographical cybersquatting involves choosing domain names associated with a certain region or location.
Branded and registered cybersquatting assigns domain names similar to the names of famous brands or people. Type squatting is not intended for sale and involves creating domains based on incorrect searches made by users.

To begin with, cybersquatters must identify the most promising domains for registration, which can be done using various methods. One way is to access search engine statistics to identify popular names or words that may soon appear in common domain zones such as com. Additionally, if a certain name appears in the com zone, it is highly likely to appear in another zone in the future.

Another interesting technique used by cybersquatters is to keep an eye on data related to potential mergers between large corporations, and to purchase domain names that are likely to be used by the newly merged company. For example, if two companies, Benq and Siemens, plan to merge, a cybersquatter may purchase domains such as Benq-Siemens, Siemens-Benq, BenqSiemens, or SiemensBenq, with the hope of registering them in the com zone. If the merger takes place, the cybersquatter can then expect to receive a hefty sum from the new corporation. Experienced cybersquatters study market trends and strategies of large companies to inform their decision-making.

Another mode of cybersquatting involves purchasing domain names for which the subscription fee has lapsed. This can present opportunities to acquire attractive domain names that have been neglected for one reason or another. However, it is becoming increasingly difficult to register popular domains using this strategy, as specialized services now intercept such domains to facilitate payment. As a result, cybersquatters sometimes engage in fierce competition to secure these high-value domains.

Typesquatting is another technique worth considering; it involves purchasing domains that are similar in spelling to popular websites people may mistype when entering a URL. For example, someone searching for fb.com may accidentally type fb.co, which is owned by a typesquatter who displays ads on the site to generate revenue. When reselling the site, the typesquatter can earn good dividends.
 This approach could also be categorized as a form of cybersquatting where popular site names are registered in other domain zones. In either case, there is a high likelihood that the holder of the resource or other companies will want to buy out the popular domain name.

Cybersquatting is indeed a controversial practice, and opinions on its legality vary. Some argue that it is an unethical and illegal activity, as it involves taking advantage of registered trademarks or valuable domain names to profit from them without proper authorization. Others argue that it is a legitimate business strategy, similar to investing in real estate, where individuals can acquire valuable digital assets and sell them for a profit.

When engaging in cybersquatting, individuals search for domain names that are likely to be in demand by businesses or individuals. These domain names should ideally be currently unoccupied and have some semantic relevance to the intended market. The different types of cybersquatting, such as industry-specific, geographical, branded, and registered, or type squatting, reflect the various strategies employed by cybersquatters to identify and obtain valuable domain names.

Industry-specific cybersquatting involves registering domain names related to specific industries or goods, targeting businesses operating in those sectors. Geographical cybersquatting focuses on choosing domain names associated with particular regions or locations. Branded and registered cybersquatting involves acquiring domain names that are similar to the names of famous brands or people, potentially leading to confusion among internet users. Type squatting, on the other hand, does not aim to sell domain names but instead creates domains based on common misspellings or incorrect searches made by users.

Ultimately, whether cybersquatting is considered legal or illegal often depends on the jurisdiction and specific circumstances. In many cases, legal action can be taken to reclaim domain names that are deemed to be cybersquatting. It is essential for businesses and individuals to understand the potential risks and legal implications associated with cybersquatting before engaging in such activities.