I picked up companynamedistributors.com in an auction a few years ago and redirected it to our website which is a directory of companyname independent representatives. Companyname has just emailed me informing me of a trademark dispute and asking me to turn the domain over to them. Godaddy values the domain at over $13,000. I'm guessing I'd lose a UDRP dispute, and I kind of hate to waste money on a lawyer over a domain we're not really using What should I do? Think someone would want to purchase it knowing there is a possible dispute over the domain?
If they have a legitimate trademark then it would not be worth pursuing. You are right that the lawyer fees would easily exceed the real value of the domain.
See if there's a way that another company with same or similar name could claim name. Maybe they'd want to buy