What is cybersquatting?

• A. Is registering, selling or using a domain name with the intent of profiting from the goodwill of someone else's trademark
• B. Is simply registering a domain name to hold for future use
• C. Is registering a domain name that matches a brand but with a misspelling
• D. Is creating a domain name to purposefully confuse customers

Answer: (A)

Cybersquatting is registering, using, or selling a domain name that is identical or confusingly similar to someone else’s trademark, with the bad-faith intent to profit from that trademark’s goodwill. The essential point is combining both the domain action and the motive to monetize the owner’s mark. If there’s no intent to profit from the trademark, simply holding a domain for future use isn’t cybersquatting. Typosquatting (versions that misspell a brand) is a common tactic within cybersquatting, but the concept covers more than just misspellings—any domain chosen to capitalize on another’s brand name qualifies when the goal is to profit from that trademark. Creating a domain just to confuse customers lacks the necessary profit motive, which is why it isn’t the defining feature of cybersquatting. Laws like the ACPA and ICANN’s UDRP address these cases by permitting trademark owners to challenge and transfer or cancel infringing domains when those elements are met.