Why it matters
Companies make defensive acquisitions to block confusion or abuse. A brand might buy a typo name, or an old name from a former product. Unlike a new defensive registration, the name already has an owner, so the buyer must negotiate. The price is often higher because the buyer is known to need it. A common mistake is overpaying for a name with little risk. Weigh the real threat first. Is the name close enough to harm the brand? Would a legal route, such as a UDRP, be cheaper? A stealth purchase can keep the price lower.
Source: sullysblog.com
Read nextDomain Names and Trademarks: UDRP, Cybersquatting, and How to Buy Safely