This seems to be a fairly unique situation, (at very least one that companies don't like to talk about). I have a client that has been running an e-Commerce site since 2000, and does a respectable amount of business for a mom n' pop operation, ranking well for some high volume terms (albeit completely unintentional). Recently a company in the same business market has taken legal action, contending that the domain, infringes on trade-marked business name. The offer on the table for a limited time is $10k in cash, $10k in merchandise, and 3.5 years of redirect, sign over the domain and walk away. My question is: does this seem like a fair deal? or is the legal action completely absurd?
seems absurd to me.. where were they back in 2000? sue now? it looks like they're either losing some of their customers or want to take advantage of the size of the business the website built.. i think your client can defend themselves in court given that it had been 8+ years no company ever took legal action.. also check how old is their trademark..
depends on the domain. sounds like you need a domain lawyer. http://www.dnlist.com/Domain_Names/Legal_Resources/Lawyers/ i would recommend: john berryhill as probably the most successful domain lawyer also stevan lieberman, ari goldberger, paul keating are all top notch as well. im sure you can talk to them and if it's worth fighting and you stand a reasonable chance then they can help you.
It does seem odd that they only now make the claim, 8 yrs down the road. I think there is a for some research...Who are they? Where are they and just when did they acquire the trademark they now claim? If it precedes the date of your clients use of the term, there might be some possible bite to their bark. It's quite possible that your client is the rightful holder of the trademark, by means of precedence. Some basic research should determine IF there is any cause to engage legal counsel. With the limited info provided and the wording, seems like smoke to me... but quite honestly, there is no way to make any fair determination without further info. The one piece of advice I would offer, besides doing basic research is, give up nothing and do not make any changes to the site or enter into any negotiations or correspondence without first consulting legal counsel. Things you(your client) say or do from this point on could be on the record (including this thread). .