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Webwork - 2:19 pm on Feb 5, 2007 (gmt 0)
Might be time for the old fashioned lawyer letter. At the very least it may cause the domain holder to remove any misleading or mis-directing links. Kill the profit (arising from any confusion or exploitation) and you may kill the domain holder's interest in keeping the domain. If your client's business name is a very generalized or generic name it might make things a bit more problematic.
"Passing off" or trading off - in other words profiting by (somewhat directly and specifically) exploiting your client's business name might give you some legs for pressing a claim. It might not be purely a 'trademark claim' but another form of State law claim. I'd focus on whether there is any evidence that the domain holder is targeting your client's (potential) business clientele.