Cybersquatting consists of registering or purchasing & using in bad faith a domain name that infringes a trademark. Domainers that use this technique gain traffic for free and do not risk much, unless the registrant of the domain is a citizen of a country where cybersquatting laws exist and are enforced (USA, France...). In practice, it almost never happens because the domainers that register such sensitive domains use whois privacy, false whois or addresses in countries such as Cayman Islands, Russia, etc.

If the violation of the trademark is obvious, the defender can ask the ICANN to transfer to them the domain and will generally obtain this through an UDRP decision. As there's a $1500 fee for this service (+ lawyers fees), payable by the complainant, parties will sometimes prefer to find an arrangement, which makes the resolution of the conflict quicker and less expensive.

 

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