I have registered expired domain via godaddy auction. I was contacted by previous owner of the domain that claims that he owns established business under this domain name and he wants to take domain back. It looks like previous owner forgot to pay for renewal. I have checked US Trademark http://www.uspto.gov/trademarks/index.jsp and it looks like there is no trademark for this domain.However, previous owner has an established business under this keyword. I have offered to sell back for very reasonable price ($xx) but previous owner refuses to pay and threatens to sue. Since there is no trademark, can I get into legal trouble?
I would depend if you intend to use it (or have already used it) in a field where he has an established common law trademark. There is no need to register a trademark to have defensible trademark. That being said, nobody is going to sue you instead of just paying $XX - that would be idiotic. If you have not yet used the domain I would keep the domain and not use it and see if he comes around with a better offer. It really depends on what you intended to do with the domain name. If your intended use has nothing to do with his business field then you can tell him to piss off. Usually the very reason one buys a used domain is to enter into the same business and that is where you could run into a problem. Seems like you were reasonable so far. If it were me, I would just sit on it completely unused so he has no claim that you are violating his trademark. I would not tell him anything and say if he wants the domain he is free to make an offer and you will consider it.
What is his business niche? I would use it in an entirely different niche and see what happens or park it and do not use it at all.
I did not use it all and bought it solely because it has a lot of links pointing to it. Right now, it just points to the blank page.
its almost impossible to forget to renew domain names, theres generally alot of reminders and generally you can extend it at any time. if it was a godaddy name, ive heard of godaddy clients crying that their names were renewed automatically, as thats a feature godaddy offers, so imo, the guy has had all the chances to retain it, and chose not to. Im curious as to how much you paid? If it was me, and if i was asked really really nicely i would give it to them at or close to the costs. ive read about rules on "domain squatters" and i believe there is nothing illegal if you keep it as a blank page. Based on what i have read, i cant see anything wrong with you listing it for sale for $1000 on the godaddy marketplace, and put on the site that its for sale, with a link to the sale, and if the guy (or someone else) wants the name quickly then they can pay for it. Im sure if they see its publicly for sale, they will be quick to buy it at whatever price you set, but if you negotiate privately, you could be there for a long time.
It's not the domain the trademark problem, it's what's inside. Vintagebayonet.com has been token down by ebay back in the days and minidonuts.com by BMWUSA So you need to check the words inside, not the domain...
I only paid $15. If he asked me nicely and explain his situation, I would probably just give to him. However, he sends me an email calling me a scammer and that he is rightful owner of the domain name. He also implies that he is the legal owner of the domains and I stole it from him. I have explained to him that domain was expired and was purchased at Godaddy auction. He is being very nasty and unprofessional and threatens to sue.