Originally Posted by Village Idiot 
Its only illegal if you claim to be the company, if I somehow (legally) got microsoft.com, as long as I don't claim to be Microsoft I am legal.
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You can still get the domain taken away from you. What Sam is trying to do (but doesn't realise) is promote cybersquatting.
Definition:
Reserving an Internet domain name for the purpose of selling it later to a company that wants to use it.
Some previous cases (some typosquatting):
http://www.msnbc.msn.com/id/8515601/
(I'll find some more later, really got to go)
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