"Malicious cybersquatting" mostly occurs in the field of rights that can bring certain economic or spiritual benefits based on the principle of "application priority", so it mostly occurs in trademarks, domain names and trade names. Regarding "malicious cybersquatting", Article 31 of the Trademark Law stipulates that "a trademark that has been used by others and has certain influence shall not be registered in advance by improper means". Therefore, "malicious cybersquatting" means that the applicant applies for registration of a trademark that has been used by others but has not been registered in his own name in an unreasonable or illegal way.

The social harm caused by malicious cybersquatting is very obvious, mainly reflected in the following three aspects:

1 destroys the normal market competition order, seriously damages the economic interests of normal operators, and hinders the transformation of China from manufacturing economy to brand economy. The essence of malicious cybersquatting is the misappropriation of others' goodwill or reputation, or the illegal occupation of public resources, which will inevitably destroy the normal market competition order. In order to deal with malicious registered trademarks, enterprises either buy back at a high price, or invest a lot of manpower and material resources to solve lawsuits, or register a large number of so-called "defensive trademarks" in advance, resulting in unwarranted waste of economic resources. The proliferation of malicious registered trademarks affects the cultivation of trademark awareness of legitimate operators and hinders or even stifles the formation of well-known brands.

2. Consume a lot of trademark examination and judicial resources, endangering the order of trademark registration and use. Malicious cybersquatting, including infringement of others' rights and interests, occupation of public resources and trademarks with no real intention, has made the already overwhelmed trademark examiners and judicial personnel worse, seriously reducing the efficiency of trademark examination and litigation. The number of trademark applications and ownership in China has been ranked first in the world for ten consecutive years, and it is still increasing at the rate of 10% per year. Due to the long period of trademark examination and many obstacles in the early stage, it is difficult to apply for a normal trademark, which affects the establishment of a normal trademark order.

3, seriously endangering the international image of China's intellectual property protection. For example, the Japanese industrial economic public statement accused China of malicious cybersquatting, and the Italian Foreign Trade Commission made a special trip to China to crack down on counterfeit Italian brands.