According to DomainNameWire, Saurik lost an attempt to gain ownership of the domain under the uniform domain name dispute resolution policy (UDRP) in March. Saurik launched Cydia in 2008; however, the domain was registered by its current owner in 2002.
The lawsuit is asking for an order which will compel VeriSign to transfer the domain name to Saurik and compensate him for attorney fees and costs incurred.
The court filing reveals that Saurik registered the Cydia trademark with the USPTO but does not reveal why he lost the UDRP case. It's possible that Cydia.com used the name in commerce before Saurik thus granting them the rights to the name despite their shady use of the mark. Reportedly, Cydia.com demanded profit-sharing in order to release control of the website and even changed its content to specifically target iPhone users. CYKON the company that owns the domain has over 600 domains registered and by all indications seems to be a cyber squatter. In the United States, cyber squatting is illegal according to the Anticybersquatting Consumer Protection Act.
If you head over to Cydia.com You will see the work of some die hard cydia fans as they had shut down the site with massive traffic.