According to Wikipedia, “Cybersquatting (also known as domain squatting) is the practice of registering, trafficking in, or using an Internet domain name, with bad faith intent to profit from the goodwill of a trademark belonging to someone else”.
Squatters register domain names with the intent of preventing others from purchasing it and/or profiting from the domain through the eventual reselling of it to desperate buyers.
Squatting is a nuisance to businesses of all sizes, and dealing with it has become a very convoluted and complicated process. Despite the many different legislative acts and laws in place around the world, domain squatting still plagues the Internet. The fact is, domain squatting can be a very, very profitable business.
Michael Berkens, one of the world’s most infamous domain squatters, currently runs thedomains.com and moves over seven figures worth of domains every year.
There are some good tips here to explain the reclaiming process, should you ever need it.