Domain names are subject to both trademark law and the ICANN Uniform Domain-Name Dispute-Resolution Policy (UDRP).
Cybersquatting is the act of registering or using a domain name in bad faith with the intent to profit from the goodwill of a trademark belonging to someone else. It is a violation of the Anticybersquatting Consumer Protection Act to do so.
UDRP arbitrators have consistently ruled that simply adding geographic descriptors (i.e. WeBuyHouses-Dallas-TX.com) or slight modifications to the trademark (e.g. webuyhouseslocal.com) may be trademark violations and can constitute cybersquatting.
Most consumers believe that for companies, the domain name itself is the name of the company. And in most cases this is true (amazon.com, ibm.com, ebay.com, etc).
However – unscrupulous companies or individuals may register domain names confusingly similar to that of a more well-known company in the hopes of tricking consumers into doing business with them instead of the more well-known company they were looking for. This practice is generally centered around using search engine optimization to trick consumers and is a violation of both U.S. Trademark Law and the terms of service when registering a domain name.