Except if it's not in your name
So yep, as you say: make this decision (fake or real information) knowing the risks involved in not legally owning it
https://www.zdnet.com/home-and-office/networking/court-rules...
See: Are IP Address Allocations Property? (2014) https://www.ethanheilman.com/x/19/index.html
Websites are more like books when they have a domain no else else cares about.
Content/expression related harms are outside of ICANNs bylaws and any obligations related to what a domain points at are not from ICANN, but from the laws in the jurisdiction in which the registrar operates. This is generally good. There is no global standard for acceptable limits on expression, with the possible exception of CSAM which is illegal everywhere.
Requiring domain registrars to arbitrate what content should be accessible via the DNS is perilous.