Cybersquatting is the term given to the purchase of popular domain names with the intention to hold onto them and one day sell them at a profit. This is often the case with well-known companies and individuals, who will often prefer to purchase the domain rather than using a different one.
This practice is not simply frowned upon; under US law, it’s considered criminal in some circumstances. When an individual squats on a registered trademark, for instance, with the intention to make a profit, they may be liable to criminal charges. As such, the practice is risky and rarely pursued.