Domain Squatting Explained – How to Protect Your Brand

Companies take extensive steps to protect their intellectual property. They’ll deploy trademarks, copyrights, and detailed legal strategies to keep their brand safe from bad-faith actors looking to profit from their work.

Yet these efforts often fall short when it comes to safeguarding something as simple as a website URL. Your web domain is your brand’s digital address, making it a prime public target for domain squatting.

Just as someone might occupy your physical home while you’re away, domain squatters can co-opt your digital address if you’re not vigilant. Domain squatting can result in severe harm. It can hurt your brand’s credibility and online presence in costly and complex ways.

In this guide, we’ll cover the basics of domain squatting, the legal protections available, and practical steps to protect your brand.

What is domain squatting?

Domain squatting, or cybersquatting, is when someone registers or uses a domain name tied to your brand with the intent to profit from your reputation. It could be your exact business name, a common typo, or a closely related URL. The goal is the same: confuse users, divert traffic, or force you to pay a premium to get the domain back. (ICANN, 2025)

Definition and tactics used by squatters

Squatters use a variety of strategies to exploit brands, including:

• Typosquatting: Registering domains that are slight misspellings (like gooogle.com) to catch accidental traffic.
• Exact-match squatting: Securing domains that match a trademarked name to resell them or redirect traffic.
• Domain parking: Buying domains just to hold them hostage and demand a high resale price.
• Phishing and fraud: Using a deceptive domain to mimic your site and trick visitors into sharing personal info or downloading malware.
• Domain hijacking: Taking control of an existing domain through unauthorized access.

Whichever tactic, squatters acting in bad faith are out to capitalize on your brand’s hard-earned reputation.

How squatters target businesses

Squatters typically go after well-known or fast-growing brands. This often looks like:

• Monitoring new trademarks and business filings: Squatters keep an eye on public trademark registrations, LLC formations, and domain availability to snatch relevant web addresses before the rightful owner does.
• Exploiting unregistered variations: Alternate versions of a company’s domain, such as misspellings, different top-level domains (.net, .co, .biz), or international extensions, allow bad-faith actors to divert traffic or impersonate the brand.
• Capitalizing on expired domains: If a company forgets to renew its domain or associated names, squatters may quickly register the expired URL to hold it for ransom or misuse it.
• Targeting fast-growth brands: Businesses that gain media attention or experience rapid growth often become targets, as squatters anticipate a higher resale value or increased traffic potential.
• Piggybacking on rebrands or mergers: Squatters act quickly when companies change names or undergo mergers, often claiming relevant domains before the company can secure them.

Real-life examples of domain squatting

Domain squatting is big business. According to the World Intellectual Property Organization (WIPO), there were 6,168 domain name disputes in 2024, with many resulting from cybersquatting. (WIPO, 2025)

These cases span from headline-making lawsuits involving global brands to everyday disputes that reveal common pitfalls. Examining high-profile incidents and recurring patterns can shed some light on how squatters operate and what businesses can do to stay a step ahead.

High-profile domain disputes

Countless brands and celebrities have fallen victim to domain squatting. Take People for the Ethical Treatment of Animals (PETA), for instance. When the animal rights organization failed to register peta.org, a satirical site mocking its mission popped up in its place, forcing the group into a drawn-out legal battle to reclaim the domain. (WilmerHale, 2002)

Celebrities have faced similar issues: Bruce Springsteen once had to fight to shut down BruceSpringsteen.com, a fan site run without his permission. Springsteen is still relegated to BruceSpringsteen.net, even though the .com version is no longer active. (WIPO, 2006)

Tech giants aren’t immune, either. Tesla was forced to operate under teslamotors.com for years while a squatter held onto tesla.com, eventually surrendering it only after a rumored multi-million-dollar settlement. (Domain Name Wire, 2016) TikTok similarly had to navigate domain confusion when a cybersquatter registered tiktoks.com. (Domain Name Wire, 2020)

Common patterns and lessons learned

Each of these cases underscores the same truth: Failing to secure the right domain at the right time can leave even the most powerful names vulnerable to costly battles and brand erosion. Any company would do well to learn the following lessons:

• Delays in domain registration leave brands vulnerable. 
• Domains are often snatched by opportunists, not competitors.
• Typos and close variants are low-hanging fruit.
• Legal recourse exists, but it can be slow and costly.

Hindsight about these patterns is helpful, but their real value lies in how they help you prepare. Next, we’ll break down how brands can apply these lessons to build a proactive defense strategy, avoid common pitfalls, and respond effectively if squatters strike.

Legal protections against domain squatting

Businesses typically secure trademarks for their name along with their domain name. Domain names alone aren’t considered intellectual property, so businesses can also register with the appropriate trademark office to better establish a legal foundation to defend against misuse.

Once a trademark is in place, there are two main avenues businesses typically take to challenge bad-faith registrations: filing a complaint through ICANN’s arbitration system or pursuing legal action under national laws.

ICANN and UDRP policies

ICANN’s policies offer broad protection at the international level. Through the Uniform Domain-Name Dispute-Resolution Policy (UDRP), trademark holders can challenge domain registrations made in bad faith. The process is convenient because it doesn’t require going to court. It’s handled through accredited dispute resolution providers and designed to be faster and less expensive than litigation.

To succeed under the UDRP, one must prove:

• The domain is identical or confusingly similar to your trademark.
• The current owner has no legitimate claim to the domain.
• The domain was registered in bad faith to make a profit off your brand.

If you win the claim, the domain can be transferred or canceled, but no monetary damages are awarded under the UDRP.

The Uniform Rapid Suspension System (URS) is also an option. The URS offers a streamlined process and can be less expensive. However, you won’t be able to take ownership of the domain — it can only be temporarily suspended. (CSC, 2022) Whichever route you go, note that ICANN disputes do not necessarily work for country code top-level domains (ccTLDs) like .uk or .us, as these are managed by national registries that may or may not follow UDRP policies. (ICANN, 2025)

Legal actions and costs

If arbitration through ICANN isn’t effective, or if the domain in question isn’t governed by ICANN policies, you may be able to pursue legal action under national laws. In the United States, the Anticybersquatting Consumer Protection Act (ACPA) allows trademark owners to sue domain squatters for damages and take control of infringing domains. (U.S. Courts, 2024) Other countries have similar protections, though enforcement and outcomes vary.

Litigation can offer stronger remedies than UDRP or URS processes, including financial penalties and injunctions, but the process can be more expensive and time-consuming. Legal fees can add up quickly, and cases may drag on for months or even years.

For many businesses, the right course comes down to balancing cost, time, and urgency. 

How to safeguard your brand’s domain

Legal protections can help you reclaim a squatted domain and safeguard your brand, but prevention is your strongest defense. A few proactive steps can save you time, cost, and headaches in the long run:

• Register your domain early: Secure your primary domain name as soon as you establish your brand. Many businesses try to register their URL — and procure necessary trademarks — before they announce anything publicly. To get started, use a domain search tool to see if your desired name is available.
• Secure variations and common typos: Close matches are an easy target once your brand earns some recognition. A common way to protect against this is to register misspellings, plural forms, and relevant domain extensions to prevent lookalike sites from diverting traffic or deceiving customers. This includes exact-match versions of your domain across other popular TLDs like .net, .org, or .info, which are often exploited by squatters.
• Monitor for infringement:  Use tools that alert you when similar domains are registered or when your brand name appears in suspicious online activity. The sooner you respond, the more likely you are to avoid a drawn-out battle.

Steps to take if your domain is squatted

Even with proactive steps, businesses can’t prevent every possible case of cybersquatting. I Explore these common avenues businesses take when they discover that someone has registered a domain tied to their brand:

1. Contact the current owner: Sometimes, simple communication can resolve the issue. Not every domain holder is acting in bad faith, and some may be open to a reasonable deal.
2. Negotiate a purchase: If the domain is valuable to the brand and the owner is willing to sell, buying it may be the simplest path to resolution. A straightforward deal can avoid the cost and complexity of legal proceedings.
3. File a UDRP complaint or lawsuit: If negotiations stall or the domain was clearly registered in bad faith, the business can file a complaint through ICANN’s dispute resolution process or pursue legal action under relevant national laws.

Stay vigilant against domain squatters

Domain squatting is a common tactic for taking advantage of established or up-and-coming companies, and it can do significant damage to your brand and bottom line. Every business, from startups to major enterprises, should know what to look for, how to prevent squatting, and the steps they can take to fend off abuse. Even if your domain isn’t intellectual property, it’s a valuable asset to protect. 

 

Sources:

ICANN. About Cybersquatting.

https://www.icann.org/resources/pages/cybersquatting-2013-05-03-en 

WIPO. WIPO Domain Name Report 2024: UDRP case filings remain strong.

https://www.wipo.int/amc/en/domains/news/2025/news_0001.html 

WilmerHale. US Appeals Court Rejects Parody Defense in Domain Name Dispute.

https://www.wilmerhale.com/en/insights/publications/us-appeals-court-rejects-parody-defense-in-domain-name-dispute-march-13-2002

WIPO. WIPO Arbitration and Mediation Center.

https://www.wipo.int/amc/en/domains/decisions/html/2006/d2006-0560.html 

Domain Name Wire. Tesla.com is now Tesla’s main domain name. https://domainnamewire.com/2016/07/18/tesla-com-now-teslas-main-domain-name/ 

Domain Name Wire. Bytedance files cybersquatting dispute against TikToks.com.

https://domainnamewire.com/2020/09/21/bytedance-files-cybersquatting-dispute-against-tiktoks-com/ 

CSC. The Three-Pronged Defense for Brand Owners Part I.

https://www.cscdbs.com/blog/domain-registrations-blocking-and-monitoring/ 

ICANN. FAQs.

https://www.icann.org/resources/pages/faqs-2014-01-21-en 

U.S. Courts. 15.31 Anti-Cybersquatting (15 U.S.C. § 1125(d)).

https://www.ce9.uscourts.gov/jury-instructions/node/699