Today I've a strange curiosity, I like making strange hypothesis ...
Suppose I own a generic domain (single dictionary word, let's say apple.com) which's also a company name and a protected trademark if used under a specific category.
Now suppose I'm using it on a PPC full of links strictly referred to "Apple products" so, obviously, I'm violating their trademark and I'm risking to lose it in a Wipo proceeding ...
An apple lawyer contact me asking to immediately desist by continuing to use such domain and to transfer it immediately to apple, suppose also he saves a screenshot of its ppc page.
I immediately change whois with totally new data and put the domain permanently offline: what would happen at this point in your opinion ?
Even if they should accuse me to have intentionally sold the domain, will they still have a chance to win it at Wipo against the new registrant (apparently in good faith because he has never used it to violate apple trademark ?) or not ?
I'm not involved in any similar situation at this time but it's surely an interesting case to discuss here ...
They probably dont have rights to the domain but they have the right to sue you for using their trademark in that business area. And that could cost you a lot more than a domain.
I think they can still go after the name even though it has been sold to another person. Besides selling it to another party will provide to the TM owners additional evidence that you're indeed guilty of a serious violation--WIPO will consider such evidence. I think it is better to hand over the domain once you receive a C&D to avoid unnecessary costs.
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You would also still be liable to be charged under the Lanham Act with a maximum fine of $100,000.00, atoorney fees, all proceeds made from the domain (notice I did not say "profit"), and pensatory damages... maybe more.
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