The central aim of this thesis is to provide feedback on the reasons which cause tensions between domain name holder and trademark owners and the means by which domain name disputes can be successfully resolved with the main focus on the UDRP. At the same time, the work reveals main flaws in the UDRP system and further considers what is meant by these shortcomings. The first chapter makes introduction to the main topic of consideration and provides brief information on the role of the Uniform Domain Name Dispute Resolution Policy as a fair model for the resolution of disputes between trademark holders and domain name owners. The second chapter of the work analyses domain name nature and its main characteristics. The third chapter focuses on the specific reasons of cybersquatting practice with the emphasis on domain name disputes. Moreover, it analyzes legal mechanisms that have been employed to resolve a variety of conflicts between domain name holders and trade mark owners and contribution of ACPA to curb cybersquatting. The last chapter looks at some of the more recent policies with intense focus on the Uniform Dispute Resolution Policy. Further, it addresses rules and practices of the UDRP system, as well as identification of strengths, weaknesses, opportunities and threats that may prejudice the goals of the UDRP. In addition, this chapter highlights some proposals for further improvement of the UDRP mechanism.