Have you actually done this, or is it a theory? ICANN is clear about what constitutes bad faith: "circumstances indicating that you have registered or you have acquired the domain name primarily for the purpose of selling, renting, or otherwise transferring the domain name registration to the complainant who is the owner of the trademark or service mark or to a competitor of that complainant, for valuable consideration in excess of your documented out-of-pocket costs directly related to the domain name."
If you aren't registering for the purpose of selling to the complainant, it's not bad faith. And it's hard to have bough it to sell to a TM that didn't exist when you registered. You really don't have to tell that much of a story in order to justify your squatting.
Important to know: negotiating the sale of a domain to a purchaser is evidence of bad faith on the part of the seller because the seller. If a person wants to keep the domain name, not answering the emails is a better option than asking for any amount of money.
To win via UDRP, the complainant has to prove: 1) the domain name is confusing, 2) there is no legitimate use of the domain name, and 3) bad faith in use.
UDRP is nice because it is administrative and lawyers typically aren't used. You just file paperwork.
However, with the Anti Cybersquatting Consumer Protection Act (ACPA), bad faith is met by proving bad faith in registration, not in use. That is a much easier standard to prevail on.
ACPA is civil litigation. It has more teeth to it when you win and lose, so lawyers are recommended because you may lose your right to appeal if you don't do things correctly during trial.
Also, remember that trademarks only exist when used to identify goods in the stream of commerce. A person does not acquire a trademark simply by registering a domain name. Therefore, old-gregg may own the trademark if he was the first to use it to identify goods in the stream of commerce.
Side note: if your "squatter" is outside the US, you have to use UDRP because you can't get jurisdiction in VA for ACPA when the person isn't in the US.
I admit that I haven't done this personally, and IANAL.. He should definitely talk to a real lawyer about it!
I was making the assumptions that 1. the OP wants the name for legitimate business use (not resale), 2. the name isn't already trademarked elsewhere, 3. the name isn't confusingly similar to another legitimate business.
My suggestion was more to incorporate the business, and launch with a similar domain name, trademark everything, and get the business started before trying to take the name from the squatter.
If you aren't registering for the purpose of selling to the complainant, it's not bad faith. And it's hard to have bough it to sell to a TM that didn't exist when you registered. You really don't have to tell that much of a story in order to justify your squatting.
See, for instance, (.doc, blame WIPO) http://www.wipo.int/amc/en/domains/decisions/word/2009/d2009...