I have a domain name that I think may infringe on a certain companies trademark. Let say its pradaauctions.com <<<example. I would add eBay and Adsense ads to this site and write posts weekly. Is this an infringement or their trademark?
Although it's not exactly the same, you will save your self a lot of problems and costs (in case of a law suit which is quite likely!) if you just change the domain name. There have been a lot of cases regarding problems like this of late and I don't see that you should open yourself up to the risk of being sued, which is enivitable if your domain name is as close to another's product trade mark name as the example you have given above. It's a matter of time before you are sued for an infringement of the trademark.
It is certainly trademark infringement. They have a trademark on "Prada" and you can't get around infringement by adding words or letters to a domain name. You can't ride the goodwill established by another company.
Thanks for replying guys, what can I do with the domain? Should I just park it? Could I get in trouble for direct linking?
Give it to its trademark holder? Drop it without getting a refund? Whatever you do, you probably won't be allowed to make any money off of it whatsoever.
Of course you can get in trouble for either. You should drop the domain and return it to the registrar and chalk it up to experience. You're not going to make squat off a domain like that from parking or redirecting and it isn't worth the risk of being sued.