I've heard of some cases where someone had to give up the domain name of another person or business. You never know what a judge might say.
Sorry to hear your friend's name is taken.. Actually this happened to me! I'm not even famous (yet). The domain was registered for 5 years and it finally expired and the guy never renewed it. I waited for the 75 or whatever days for it to delete the name and I snatched it up. I was so lucky.