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refund? No. But some companies will refund reg fee. It won't hurt to ask. When I first started back in 2003 and didnt know better. Yahoo actually gave me I think it was $24 for each name which was nice since I was clearly in the wrong as you currently are.
Blatant TM, they obviously know what they are talking about with that letter and they know the law, I say just give it up.
However there is the chance that they simply send letters like that out as a scare tactic and don't actually follow it up with anything - I don't see much harm in letting those five calendar days lapse and waiting until they contact you again with a more stiffly worded letter. You could always say you never got the first one or hadn't had a chance to read it yet.
In the end though, I'd say just give up the name(s).
It's not that generous. What is his outlay? $80? Nike's laywers probably charge Nike that every 15 minutes. Cheaper for them to pay the $80 than to spend another hour arguing on the phone with him, sending out more letters etc. And they probably assume TM-squatters don't have many assets to go after so suing him is pointless. Smart business decision on their part, but I wouldn't call it generous. In fact I think he might have been able to get them to pay him something on top of his costs for his troubles.