Final answer:
Trademark holders may seek up to $100,000 in damages from cyber squatters who register domain names that infringe on their trademarks under the Anticybersquatting Consumer Protection Act.
Step-by-step explanation:
Under the Anticybersquatting Consumer Protection Act (ACPA), trademark holders can seek civil damages of up to $100,000 from cyber squatters that register their trade names or similar-sounding names as domain names. This law is intended to give trademark owners legal recourse against individuals or entities that, with a bad-faith intent to profit, register domain names that are identical or confusingly similar to distinctive marks or dilutive of famous marks. Federal courts have the jurisdiction to hear cases that involve "interstate" matters, "diversity of citizenship" involving parties from two different states, or between a U.S. citizen and a foreign citizen, and with a damage claim of at least $75,000.