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name squatting

Dear Sir or Ma'am,
I am writing to protest the fact that name squatting is bieng allowed to continue except for cases of existing trademark infringement.  No where to the best of my knowledge is this practice allowed to exist except for the internet.  I could not go to a courhouse and file a list of d/b/a's and turn around and sell them for drastically inflated prices, so why should an individual be allowed to do this on the internet.  I understand if someone has a legitimate business idea, but is approached by another party and is offered or negotiates a decent profit, but the at large registration of domain names for resale is nothing but a scam that is one more reason to avoid business on the internet.
In my particular instance, I filed my d/b/a, then the next day, an individual filed for my business name as .com and .net.  After four months of not putting up a website for either, I contacted him and asked what type of business he was in and if he planned on using both.  His response was to offer .com for $2500 and .net for $500,  which amounts to extortion of my business name as he appears to have no business operating or registered to that name other than to make money off of the domain name.  
To summarize my feelings on this, resale of domain names should be illegal, this is infringement on fair business practices.  Please correct this error as soon as possible to protect America's businesses from this type of fraud.
Thank you,
Bruce Towler, owner
Outdoor Oasis