Jeff legally registered various website domain names with the word "cataclysm" in them, a word that is the trademark of the famous company Cataclysm Inc. Jeff then sold these domain names to Cataclysm Inc. at a much higher rate. This is an example of cybersquatting.

True

Explanation:

Most persons trying to make a profit from the internet tries to employ the use of cyber squatting in order to make money from the persons that already have businesses that are registered under this name. The reason why they do this is because they can make a huge profit and gain from such an arrangement.

This practice is quoted to be illegal under a Anticybersquatting Consumer Protection Act that was defined in 1999. In addition to this there are also international laws that dictate that these practices are not accepted. The policy drafted in respect to this is the Uniform Domain-Name Dispute-Resolution Policy.