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According to the U.S. federal law known as the Anti-Cybersquatting Consumer Protection Act, Cybersquatting is registering, trafficking in, or using a domain name with bad-faith intent to profit from the goodwill of a trademark belonging to someone else. The cybersquatter then offers the domain to the person or company who owns a trademark contained within the name at an inflated price, an act which some deem to be extortion.

The term is derived from "squatting", which is the act of occupying an abandoned or unoccupied space or building that the squatter does not own, rent or otherwise have permission to use. Cybersquatters usually ask for prices far greater than that at which they purchased it. Some cybersquatters put up derogatory remarks about the person or company the domain is meant to represent in an effort to encourage the subject to buy the domain from them.

Cybersquatters sometimes register variants of popular trademarked names, a practice known as typosquatting.

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Chilling Effects Clearinghouse: Domain Names and Trademarks - FAQs and advice on how to defend against claims of domain name trademark infringement and other legal scare tactics, compiled by students at the Berkman Center for Internet Society at Harvard Law School.
Meta Description: [ Speaker or cybersquatter? Consumer advocate or source of consumer confusion? Those who speak online are tagged with these labels -- and threatened with lawsuits -- based on the domain names they use to draw traffic to their site. Commercial entities, meanwhile, spend huge amounts of money to d... ]

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Meta Description: [ Judge approves domain name penalty on eReferee | In one of the broadest crackdowns ever issued against a domain name holder, a federal judge orders eReferee.com to stop using the word referee in all of its domain names. | February 16, 2001, 4:00 AM PT | Lisa M. Bowman ]

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Meta Description: [ A new association that's not affiliated with the Internet Corporation for Assigned Names and Numbers has been created to bring together Internet top-level domain holders, in an effort to prevent conflicting TLDs and bottlenecks online. , Although the feds aren't talking publicly about a three-ye... ]

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Meta Description: [ AOL Threatens Peng, Demands Domain Handover -- article related to America Online and Your Rights Online. ]

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