A little over a month ago, the Skittles hit the fan when the Internet discovered that King.com Limited had trademarked the word "candy." Reaction ranged from "all other games with candy in their titles were in trouble" to "no one on Earth could ever utter the word candy again."
Proper federal registration of intellectual property is beneficial because it provides the owner with the right to sue for particular damages in the event that the intellectual property owner's copyright, trademark, or patent is infringed upon after federal registration.
There are a number of ways that trademark owners deal with cybersquatters. Rachael Ray recently instituted an UDNRP arbitration proceeding against an Indian company that had registered www.rachelray.com (note the missing "a").