Domain Squatting: Basics and Actions to Take

Don't Let Domain Squatters Hijack Your Brand

Imagine this: you ask your smart assistant to find your business online. But instead of your site, it pulls up a page with a name almost identical to yours, filled with ads, shady content—or worse, a "domain for sale" sign.

That’s domain squatting. 

Domain squatting (also called cybersquatting) is when someone registers a domain—usually a name tied to your brand, product, or personal identity—with the intent to sell it back to you at a markup, siphon traffic, or exploit it for ad revenue. It’s sneaky, frustrating, and often, totally legal… unless you know what to do.

Cybersquatting by the Numbers

The numbers speak volumes:

• In 2022, WIPO (World Intellectual Property Organization) handled over 5,400 domain squatting cases—a 29% jump since 2020.
• More than 100,000 domains have been involved in disputes.
• The top target? You guessed it: .com domains.
   

Domain Squatting vs. Domaining

Let’s be clear: not all domain buying is shady. Some folks (called domainers) register domains based on trends, interests, or high search volume—then sell them later. That’s domaining.

But when someone registers a domain with the clear intent to block the rightful owner, profit off confusion, or ransom it back? That’s squatting. And that’s where things get murky—or outright illegal.

Why Would Anyone Squat Your Domain?

You don’t have to be Microsoft or Madonna to become a target. Domain squatters:

• Monitor new LLC filings, DBAs, and business licenses
• Register the names before you do (often for pennies)
• Count on you needing it more than they do

For them, it’s a small bet. For you, it could mean changing signage, scrapping launch materials, or paying thousands just to reclaim your brand name.

What Counts as Bad Faith?

Under ICANN’s Uniform Domain-Name Dispute-Resolution Policy (UDRP), bad-faith registration includes trying to sell the domain to the brand owner for profit, intentionally disrupting a competitor’s business, or creating confusion by impersonating a known brand. If any of these sound like your case, you’ve got a claim. But you’ll need to prove it.

Typosquatting is the practice of registering names that users could easily mispell when trying to access a domain. In this video, Youtuber John Hammond finds some of the most bizarre typosquatting websites.

How to Reclaim a Squatted Domain

1. Gather your evidence – Trademark certificates, branded materials, screenshots, etc.
2. Look up the domain owner – Use a WHOIS lookup to find contact info.
3. Reach out – Some owners are willing to negotiate.
4. Try mediation – Faster and cheaper than court.
5. File a UDRP complaint – The formal dispute process via ICANN.
6. Consider legal action – Especially if you’re in the U.S., ACPA offers strong protections.
7. Negotiate smartly – If you go this route, be cautious: you’re not guaranteed success.

Smart Moves to Stay Ahead

Prevention is cheaper than cure. Here’s how to protect your brand:

• Buy your domain early – Don’t wait until launch.
• Grab variations – Misspellings, other TLDs (.co, .biz, .tech, etc.)
• Lock down your social handles – Consistency matters.
• Use an ICANN-accredited registrar – With security tools like domain locking and 2FA.
• Monitor your name – Tools can alert you if lookalike domains pop up.
• Trademark your domain – It gives you legal teeth.

What If Your Dream Domain Is Taken?

If the domain you want isn’t infringing on a trademark, you may just need to pivot. Consider a creative twist on your brand name, or try niche extensions like .tech, .studio, or your country code.

Want help choosing the right domain or safeguarding your brand? We’ve got you.