Think of it this way. You're on your way home and JimRutt calls your cell phone to ask you to stop at Amy's Emporium and buy something. This store is on a busy one-way street (your computer -->DNS servers -->Website) and a block up is another store called... Aimiee's Emporium, which provides the same products/services. Since Jim didn't spell out the store's name, you stop at the first one you find (Aimee's Emporium, the name is close enough isn't it?), buy what he asked for and go home.|
Since VS's search function provides the same service as google.com, it can be argued that go0gle.com is adversly impacting google's business. The mere existence of the search page on a misspelling of google is enough to get an injunction. If google can show a loss of traffic and put a dollar value to it... then VeriSign is liable for damages.
In google's case, its not cybersquatting, but try setting up a mechanic shop named Jeffy Lube and see how quickly Jiffy Lube will slap you with legal papers. Example: Nissan.com Here's an article that lays out the court's opinion http://www.wired.com/news/politics/0,1283,40939,00 .html
""As the court found, Uzi Nissan is 'selling confusion,'" said David Schindler, attorney for Nissan Motors, in an e-mail interview. "Thousands of people arrive at nissan.com everyday looking for Nissan, the car company, not Nissan Computer or Uzi Nissan. He generates revenue by diverting these people to numerous advertisers, including auto advertisers, who pay him per click-through."