Cyber squatting as the name suggests entails squatting on the Internet. In simple terms, cyber squatters register various domain names that include the names of important brands and people as well as companies, and thereby hindering the trademark owners from using the domain names.

In most instances cyber squatting is used as a means of generating income.

The domain names are taken and as such cannot be used by anyone else. They place the names on auction and sell to the highest bidders. It is seen as unethical and still it happens.

The cyber squatters have no connection to the companies or people whose names they use as domain names. Since at this stage it is not possible to regulate domain name registration in a manner suitable for the prevention of cyber squatting, the problem is expected to exist well into the future of the Internet.