When I started domaining the first rule I learned was to never register domain which contains trademark. I was really suprised when I visited ebay today. Somebody was selling a domain (nokian97.us), and the item already had 11 bidders, 30 bids and current price was almost $500 . How is it even possible?
Are all traffic violators caught? Nope, but those that do might pay a price. Everyone's gonna do their thing, then be ready for any result.
Guys, if you know about Tata (all Indians know this company), their website is tata.com. Now visit tatas.com and you will be surprised. People do register such domains and they even sell them. That's normal. Buying and selling these domains does not makes a problem. But the problem arises when people put contents on such website which defames the company, its products or services, its brand or its reputation. In one such case, someone registered the domain tatas.com and put porn contents on it. Tata came to know and they immediately took action. Although the contents have been removed and the domain is pointing to other domain, but still its having porn contents on it. So what you think Tata will do? Probably nothing, because the domain owner is living in some other country and the actual domain is not having any pron contents. They are on different domains. The only difference is that tatas.com is pointing to that domain. When dealing with trademark domains, you must take precautions that you do not put any contents on it which will force the company to take action. For e.g. parked trademark domains are valueless and non-problematic.