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Cybersquatters and typosquatters are unethical companies and individuals that make profit from your family's and your own confusion and spelling mistakes. They are more like parasites that eat your revenue and may cause huge loss to your websites because they use spelling mistakes to drive your traffic to a site that those not have similar content and may be offensive to such visitors.
Cybersquatting is simply registering, trafficking in or using a domain name with the desire to profit in bad faith from the goodwill of a trademark that is someone else's. It refers to the practice of buying up domain names that incorporate the names of existing businesses with the intent to sell the names for a profit to those businesses. It is simply thesame with squatting in a person house without permission.
While typosquatting, although very similar to cybersquatting, is a little different, but much more serious, it is applied by people who want to concern traffic to their websites. Typosquatters basically purchase a domain name that is a variation of a popular domain name with the hope that some of the traffic for the original web site will stray to theirs by capitalizing on web surfers´ misspellings of those popular domain names.
Many of the time true companies fall prey to such kind of people or companies. Although trademark laws do offer some protection, it is usually cheaper to buy the domain name from the cybersquatter than it is to sue for its use: these processes cost money, and though you may be able to recover your costs and attorney fees if you win, but there is no guarantee you will win, it a decision of the ruling judge.
To know if your domain name is being used by a cybersquatter? As a general rule, check to see if the domain name takes you to an website. If it takes you to a website that appears to be functional and reasonably related in its subject matter to the domain name, you probably are not facing a case of cybersquatting. But if you own a trademark and find that someone is holding it hostage as a domain name until you pay a large sum for it, you could be the victim of cybersquatting.
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