jtara - 6:34 pm on Jun 27, 2006 (gmt 0)

I think you act cooperatively, accept any offer that you receive, and be glad you don't have to pay a lawer to defend a lawsuit that you will lose.

If your site had nothing to do with the subject matter of the trademark holder, it would be a different matter. But, given that you are an affiliate of them, and are sending them traffic, the name is clearly (to a layman, anyway) confusingly similar.

How could you have possibly have thought that this was OK? You're clearly profiting from the similarity of your domain name to their trademark.

I'm not sure how it is that you didn't know about the purplewidgets website until recently. You don't know what domains you own? OK, well, I guess you can work this in your favor. Explain that you own a lot of domains, and haven't kept track of them as well as you should. Apoligize profusely. In my mind, not an excuse, but it sounds like they are being reasonable, so perhaps they will accept that explanation.

You still may want an attorney, to make sure you don't get yourself in further trouble.