A new study shows that Google (GOOG) may be profiting from typosquatting, NewScientist's Tech page reports. Typosquatting is the act of registering or using a domain name with bad faith intent to profit from someone else's trademark. Typosquatting is when someone registers a domain name, hoping for typos from those looking to go to certain domains. This action is based on common misspellings, typing errors, a different domain name, or a different top-level domain.

Here is the thing about typosquatting, if people make a mistake enough times, the typosquatter could profit thanks to ads placed on their page. How many times have you accidentally typed a domain name that is a letter off of the original? Or what about a flat-out typo? You are sent to a page that looks like a search page, except that it has sponsored ads that will make the site money if you follow the link. What is interesting is that Google may also be profiting from this.

Microsoft is using its heft to go after so-called cybersquatters and typosquatters. Basically, these are firms that buy domain names that look similar to a major brand name, say Starbucks or Apple. Often, these domain names have misspellings.

In other words, this is a cheap way to get lots of traffic. And, then with things like Google's AdWords, you can make a good amount of money from pay-per-click ads.

Example: When Microsoft announced news about Zune, there were thousands of purchases for similar-sounding domain names.

Interestingly enough, if the domain names do not generate lots of revenue – or the revenue burns out – then they typically wind up on auction sites. Yes, there is a whole ecosystem to cybersquatting and typosquatting.

Well, Microsoft is now serving some of these firms with lawsuits – claiming trademark infringement. Apparently, one of Microsoft's top researchers, Yi-Min Wang, has built a pretty cool piece of software (called "Strider") that hunts down cybersquatters and typosquatters. Micorosft says about 2,000 domains a day are registered using the company's brands.

I talked to John Gotts, a big-time domain name buyer who recently paid $2.8 million for Wiki.com. According to him: "You might also wonder why a company with the resources of MSFT wouldn't just buy the typos of its domains."

He points out that if, while using Internet Explorer, you type in a non-registered domain name, you will get a Microsoft default page that asks you if you want to buy it. He gives the example of www.miiicrosssoft.com: