The owner of the domain name is not technically cyber squatting on it. It won't work. If this was the case, people would be losing domain names right and left, and it just doesn't happen at all. There's nothing stopping anyone from trying it, but the name is going to stay with the original owner. There's no obligation for someone to relinquish a domain name just because someone else owns the trademark. They don't have to use it for anything. As long as they don't violate squatting laws, there's little recourse. Even if they have a good attorney.