Registering an Internet domain name that sounds similar to a widely known company or product. For example, if
fancy-shirts.com were a popular clothing site, a cybersquatter might register
FancyShirtsClothing.com and hope to rank high on a search engine's results page, also by including related words in 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 $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. See
URL hijacking,
page hijacking and
domaining.