Domain names play a pivotal role in the digital era, especially when it comes to ecommerce. In many cases, domain names are used as trademarks or correspond to already registered trademarks. However, domain names’ legal nature is more than unclear in many legal orders around the globe. The tension between domain names and trademarks is apparent as cybersquatting violations are on the rise each year. The paper is attempting to address the legal nature of domain names and illustrate the cybersquatting phenomenon through WIPO’s relevant cases and the application of the “three step” test. Domain names’ dispute resolution systems are described with reference to WIPO’s rules and procedures, namely the Uniform Domain Name Dispute Resolution Policy (UDRP) and the Uniform Rapid Suspension System (URS). Finally, the role of alternative dispute resolution (ADR) in domain names is evaluated.