What Is Domain Squatting?

Date First Published: 12th January 2022

Topic: Computer Networking

Subtopic: Network Identifiers

Article Type: Computer Terms & Definitions

Difficulty Level: 6/10

Domain squatting, also known as cybersquatting, is the act of registering a domain name with the sole intent of preventing another user from registering it or making a profit from reselling the domain name. Domain squatting is harmful as it blocks the owner of the company from registering their domain name. Also, people that do not own the company benefit and make money from another person's company name and impersonate their brand.

An example of domain squatting would be a user registering the domain name of a business that a user does not own just to block the owner from registering it. In addition, domain squatters can sell domains to the rightful owner at a much higher price if they are desperate to buy the domain.

In accordance with the Anticybersquatting Consumer Protection Act (ACPA), victims of cybersquatting have a right to sue. They can also file a complaint to ICANN, which requires evidence that the domain name was a bad faith registration (e.g. infringing on the victim's registered trademark).

Note:

Similar to typosquatting, domain squatting comes from the words 'domain' and 'squatting'. The word 'squatting' means to occupy an unused area that the squatter does not own or have permission to use.

Why Do People Engage In Domain Squatting?

• To make a profit - This is the most common reason why people engage in domain squatting. People make profits when they sell the domain name at a much higher price and display ads.
• To prevent the owner of the company from benefitting from the domain name - There are some people that like to cause trouble for others and the havoc they create by squatting domains encourage them to engage in domain squatting even more.

How To Prevent Domain Squatting?

• Register the domain as soon as possible - This is the easiest way to prevent domain squatting. Domain squatters often register recently searched domain names.
• Register similar domains and misspellings of the domain name - It is common for domain squatters to register misspellings of domain names and domains with a variety of different extensions as their own, which is known as typosquatting. (.com, .net, .org, .biz, etc).