In dotcom era cybersquatting was at its peak. Basically booking or using domain names with bad-faith to make profit from the goodwill of a trademark belonging to large/small corporations. They also try to sell these domains for profit to others or even to business itself. Even after DOT-COM crash Cybersquatting still continues because of profits.
I remember when I uses to sell computers and my firms name was ‘Cyberciti Computers’, so I booked cyberciti.biz domain. I used to get an email from someone who claims to owner of domain cyberciti.com and willing to sell me the same.
By past mistakes I have also learned lesson to renew domains on time. My first domain vivek-tech.com was taken by someone. So if you got domain make sure you rename it on time or even in advance.
If someone takes your domain related to your business then you can take the help of laws. If you are in US you can take help of 1999 US federal law known as the Anti-Cybersquatting Consumer Protection Act. I don’t think so we have any such law in India, under IT Act 2000.