Registering a domain you don't intend to develop, usually to resell it later at a markup or extort the obvious trademark holder. Distinct from legitimate aftermarket trading.
Squatters bet on three plays: (1) a brand owner will pay to reclaim their name, (2) typo traffic will monetize, or (3) the domain gains value as the space matures. Some operate at scale, hoarding thousands of domains betting one hits.
ICann created UDRP and URS to let trademark holders recover abused domains without court. Most registries enforce these policies. That said, enforcement is jurisdiction-dependent and slow. A .com squatter in a country with weak trademark laws or buried ICANN cooperation can hold longer.
Why it matters: if you want a domain, you might face inflated aftermarket pricing. If you own a brand, squatters are a tax on speed—grab your variations fast. Some registrars and drop-catching services exploit this arbitrage openly.
Bunkerdomains doesn't police intent at registration. We don't ask what you're building. But we do honor UDRP and URS when served, because jurisdiction demands it. Squatting is legally gray in most places—not criminal, just civilly actionable under trademark law.