<disclaimer -I'm not a lawyer>
Happens all the time. Whether you have a legally registered business name is likely to be of little consequence unless you can document that you had the term in use before they did (in use, not necessarily trademarked first). The other factor that quickly comes to play is whether you're in the same category of business --the key issue there being whether your use will confuse the consumer. If this domain is mission-critical, you need to pursue the possible legal problems asap.
2 things to consider:
Does the domain name confuse the public or dilute the trademark?
If so, be prepared to lose the case if it goes to court.
Secondly, is it worth the fight? Ask yourself is it worth the hassle; including the malicious activites that could be done on the part of the trademark owner behind the scenes? I'm not saying they WOULD, but I am suggesting that if anyone gets upset enough they MIGHT be tempted.
Just some suggestions.
I gave up the domain without a fight. Wasn't worth it. But I will be getting a check from them for my costs.
If you're not using the domain in anything related to music, you might be OK, but you're never really sure with trademarks. Even if you hold a mark, it can be contested based on prior use and it can be lost.
Again, if this is a serious business issue with you, a lawyer is your next stop.
Besides, I believe it is a requirement that a mark holder pursue anyone they believe is treading on their brand.
Yes, this is very true. AND, as an added problem for trademark holders, if they do NOT pursue infringements, they lose some credibility in any lawsuit.
So, I would suppose that if you could find other people/websites using the disputed trademark, it would actually help your case.
A trademark is only useful if you protect it.
<added>One more thing-State issued trademarks differ from Federal Trademarks in the US, but that's a whole 'nother subject.</added>
I have a friend who sucessfully plays his "costs" against the expenses of the other party, sometimes both parties can be happy.
In this case, time is of extreme essence. The domain will only be 'good' for about 2 months....then dead.
It was my first time...so I weighed the costs (My time fighting it and being a...ahem...'first time offender' against the 'value' of the domain...which was not very high.)
The check will be a good conversation piece. :)
Lindows .com submitted declarations from expert witnesses and trade press articles from the 1980's, when several software companies were offering desktop environments. They spoke of the "window wars" of those years and had headlines like "Microsoft Does Windows."
the judge wrote, "one could just as easily conclude that in 1983 Microsoft made an equally risky decision to name its product after a term commonly used in the trade to indicate the windowing capability of a G.U.I."
NY Times [nytimes.com]