Speculation, one of the primary negative connotations associated with domain names, can take different forms. Let’s take a look at the most common terms to get a better handle the subject:

Typosquatting: Hijacking the URLs of high traffic domains, to take advantage of when Web users type-in generic common nouns or typos directly into their browser’s address bar; e.g.,wiipedia.org, eikipedia.org,wilipedia.org,wikipedi.org, etc.

Add Grace Period (AGP): 5-day grace period granted since 2003 by ICANN during which the ICANN’s fee is reimbursed if registration of the name is abandoned before the end of the 5-day period.This is a procedure co-opted by registrars who practice domain tasting/kiting.

Domain tasting: Method for taking advantage of the AGP to test a domain and see if it is profitable for direct navigation (using ads, etc.), leaving it available for registration if it proves otherwise.Without paying, of course.

Domain kiting: Repeated tasting, where registrars deposit huge sums of money into the Registry, than register as many names as possible with that money.

According to the WIPO(*), cybersquatting has reached “an unprecedented level in 2007”, with a record 2,156 complaints, up 18% from 2006 and 48% compared to 2005. Nearly 75% of the cases involve .COM domain names.

The top 3 sectors for complainant business activity are:

1. Biotechnology and Pharmaceuticals
2. Banking and Finance
3. Internet and IT

Which is why it is necessary for brands to establish an actual naming strategy in order to protect their domain names,keeping in mind this golden rule: An ounce of prevention is worth a pound of cure!

(*) Source: http://www.wipo.int/pressroom/en/articles/2008/article_0015.html