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Definition of Cybersquatting ( also know as domain squatting ):

The act of registering, trafficking in, or using a domain name with bad faith*  or the intent to profit from the goodwill of a trademark belonging to some other entity. The cybersquatter* then offers to sell the domain name to the entity that owns the trademark contained within the name at a much higher price.  The Anticybersquatting Consumer Protection Act or ACPA prohibits such an act.

The entity committing the act of cybersquatting is commonly referred to as a cybersquatter.

*bad faith: intentional dishonest act by not fulfilling legal or contractual obligations, misleading another, entering into an agreement without the intention or means to fulfill it, or violating basic standards of honesty in dealing with others