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Harry - 1:24 pm on Oct 23, 2006 (gmt 0)
I too would not backdown or give them the domain so fast. I would not ask them to pay for the "efforts" put on a fan site though. But the domain, they can buy if they really want it. If you yield completely they could come after you later. You have to make sure that any settlements leaves you scott free and safe from future attacks and claims from them. Having said that, I always chose my battles and this is not one I would have even ventured in the first place. Life is too short. Finally, remember that for any trademarks, the owner has to continuously prove that he defends it when it is attacked. That's the first reason why they sent you a notice. Thus even registered trademarks are only as safe and protected as the effort its owner is willing to invest.
Lobo has a point as far as any legal matter, is all about who shouts the louder and groans the most. Laws are all subject to interpretation, and yes the chain - Disney? has to prove their claim first.