The First Thing You Should Do After Starting a Business

There's a horror story that floats around startup circles.

You've spent months preparing. The company is registered, business cards are printed, and it's finally time to build the website. You type your company name into a domain search bar and…

Someone already owns it.

Your exact company name. Someone's sitting on it.

What Is Cybersquatting?

This is called cybersquatting.

It's the practice of registering domain names that match trademarks, company names, or famous individuals — with the intent to sell them at a premium, or use them as leverage. It's been around since the early days of the internet in the 1990s, making it one of the oldest scams in the digital playbook.

The math is simple: register a domain for $10–15 a year, sell it later for thousands. Some people do this full-time.

What Actually Happens

There are three common patterns.

Pattern 1: They just sit on it

Nothing on the domain. No website. They're just waiting for you to reach out. The moment you send "Would you be interested in selling?", all negotiating power shifts to them.

Pattern 2: A parked ad page

You visit the domain and get a page full of Google ads. Every visitor who searches your company name and clicks through earns the squatter a few cents. Your brand is essentially driving someone else's ad revenue.

Pattern 3: They contact you first

"We currently hold a domain that may be of interest to your company. Please reach out to discuss." The price is "negotiable" — which usually means expensive.

What Can You Do?

Option 1: Just buy it

If the price is reasonable and you need it fast, sometimes paying up is the pragmatic choice. Legal routes take months. If the squatter is asking for a few hundred dollars and the domain is critical, it might be worth it.

Option 2: UDRP Dispute

UDRP (Uniform Domain Name Dispute Resolution Policy) is the international dispute process created by ICANN for generic domains like .com, .net, and .org.

To win, you need to prove all three of the following:

• The domain is identical or confusingly similar to a trademark or service mark you own
• The registrant has no legitimate rights or interests in the domain
• The domain was registered and is being used in bad faith

Costs range from $1,500–$3,000 depending on the panel, and decisions typically come within 2–3 months. Much faster and cheaper than court.

Option 3: Local dispute resolution

For country-code domains like .kr, .jp, or .uk, local dispute resolution bodies often have jurisdiction. In Korea, the Internet Address Dispute Resolution Committee under KISA handles .kr domains, with lower fees and proceedings in Korean.

Option 4: Litigation

If UDRP doesn't apply or you want damages, court is the last resort. Stronger, but slower and more expensive.

How to Prevent This

Prevention beats litigation every time.

Check domains before you name your company

Before you fall in love with a business name, search for it as a .com and your local TLD. If both are available, great. If not, consider whether the name is worth the risk. And if you're going ahead — register the domain before you file any business paperwork.

Register multiple extensions

Even if you have .com, consider grabbing .net, .co, and your local TLD. A few thousand won a year is cheap insurance against a competitor or squatter using a similar domain to confuse your customers.

Register your trademark

Domain ownership helps, but trademark registration is what makes UDRP cases winnable. As your business grows, get the trademark.

The Bottom Line

Your domain is your address on the internet. If someone squats on your company name, it's not just annoying — it can genuinely hurt your business.

If you're starting a business, check domains first. If you've already been squatted on, look into UDRP or local dispute resolution. And if your brand name is still available as a domain right now, register it today.

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