There should be an easy way through which you can complain against the squatters online. Maybe Google should act as a mediator here as they can blacklist any domain from their searches and thus hold about as much power as the registrars/ICANN.
In any case, what happened afterwards? Did you get back your domain or is it still being squatted?
It's still being squatted. I own other TLDs for it we can operate the site off of. I'm hoping eventually they abandon the domain, since it's unlikely anyone else will want it.
Did you try complaining to ICANN about it via any means? An alternative is to throw a DMCA on them through Google, that's much faster (though its intended use is reporting of copyright violations, not sure how it'll work for reporting of squatting of domain names).
In any case, what happened afterwards? Did you get back your domain or is it still being squatted?