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Can the owner of soft.com sue microsoft.com? Yes, the owner can. Would he win? Doubtful.
But Micro$oft DID sue Mike Rowe, who ran MikeRoweSoftware.com (or something like that)- there's a thread on WW from some time ago.
There was also a lawsuit between goto.com (which later became overture.com before being bought by yahoo.com) and Disney's go.com.
If the owner of DoThis.com has deep pockets, they may sue your client even if they don't expect to win. They know they can bleed your client dry from lawyer fees before it even goes to trial.