It used to be that cybersquatters would register the name of a famous person, company or product and then try and sell the name to the rightful owner. But now things have changed. According to Wired News:
These days, cybersquatters seek to register a star’s domain before that person becomes famous, and then develop a business relationship with the new celebrity, offering website hosting or design work. These so-called soft squatters are registering the domains of hundreds of amateur athletes, musicians and other would-be stars in the hope that one or two of the names will become well-known.
There are now even specialized services like sedo.com that make it easy to earn add revenue from parked domain names and at the same time provide a vehicle to help sell such domain names.