Typically, Apple has no problem laying down a bunch of money to recover a domain as has been the case with domains like iPhone.com and iCloud.com. However, this time around, the target was iPods.com, and Apple opted to use the Uniform Dispute Resolution Policy.
This policy allows trademark owners to recover domains matching said mark if the respondent has no “legitimate interest” in the domain name.
Using this, Apple requested that the domain be transferred to them, which likely cost them a few thousand dollars in legal paper work filing fees. This sounds super scary on paper, but since I’m super sick of seeing squatted domains every day, I sort of agree with this policy.