Based on the story you have told us (hey - they're is always two sides!) this is a clear case of cybersquatting.
http://www.nolo.com/article.cfm/obje...1/228/195/ART/You can either sue to get your domain name -- and possibly some money damages -- under a 1999 federal law known as the Anti-Cybersquatting Consumer Protection Act, or you can initiate arbitration proceedings under the authority of the Internet Corporation of Assigned Names and Numbers (ICANN) and win the name back without the expense and aggravation of a lawsuit.






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