I have a web site created 6 day ago, cause of google honeymoon on new website, i lucky enough to rank first place in many keyword but at the same time it create attention to another domain (ten year old). Yesterday (day 5) they send me a email regarding my web domain and telling me, my domain violate their copy right issue but i think differently cause is generic word "Motor Trader" .. Basically we have same identical domain but different country TLD (my is dot asia, they are dot com dot my) .... Sad me, google honey cause me problem now
If you violated a Federal Trademark, they can yank the domain from you without too much trouble. You need to COMMUNICATE with them and reach an agreement. If it's a trademark issue, you're in a losing position and have little to bargain with.