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Microsoft is now suing, after offering $10 for one guy's legitimate business domain name. Even the mainstream TV news is reporting on this, but this article has some of the best coverage.
...when an email from Microsoft’s Canadian lawyers Smart & Biggar arrived on 19 November laying out its complaint, he was “amazed and appalled”. He replied saying he didn’t want to hand over the domain and didn’t feel there was any risk it would damage Microsoft’s name.
He then got another email. “They responded to this email by offering to give me all of my out-of-pocket expenses in return for the domain name. This came out to be $10; the amount I paid for the domain. This made me feel insulted. I had spent a lot of time building up my site and I had only been offered $10 for my work. I responded by asking for $10,000, which I regret doing now, for my work and domain name.”
As he now knows, Mike had unwittingly slipped into the classic trap set by companies in order to get hold of domain names - the creation of a “bad faith” use of the domain. By offering to sell the domain for profit (even if sparked by the offer of payment by the other party), according to the bent logic of domain dispute arbitrators, it shows the owner had no legitimate interest in the domain and so it should be handed over.
