The purpose of the thesis is to critically analyze the concept of cybersquatting, development and its impact on the trademark society. The phenomenon of cybersquatting came into existence simultaneously with the commercialization opportunities on the internet where businesses were not educated well enough in respect of the internet’s market prospects and by that time did not know how to properly react in this regard. This thesis will outline the notion and types of domain names. The analysis shows that since the establishment and high growth of the internet a great number of people saw it as a “gold chance” by registering domain names identical or confusingly similar to well-known trademarks with the intention to have income benefits when selling them to trademark owners. Further, it explains the correlation between domain names and trademarks, scrutinizing the similarities and differences that exist amongst, and how these two are intertwined and handled from legal perspective. Moreover, it clarifies the importance and the role of ICANN and its role through the UDRP in solving disputes that arise from cybersquatting and providing trademark owners with such mechanism which enables them to fight against this problem and to protect their trademark rights. In addition to this, the advantages and disadvantages of this online dispute resolution are thoroughly clarified and criticized at the same time. In addition, the study concludes that our current legislation is not richly enough to handle with such matters and seems to be reviewed.