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Trade Mark Issue

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Most trademarks are with out any TLD's, therefore TM.Com or any other TLD would definitely be an issue.
 
the top-level domain, such as .com or .net, is totally irrelevant for trademark purposes. In other words, Cocacola.com is identical to Coca Cola.
 
It seems to me that a company uses "cali" for "t-shirts, coffee mugs ect…" and he wants to use "cali.com" for "t-shirts, coffee mugs ect…" but the OP is trying to say that since cali is generic for California, he should be ok to use cali.com anyway he wishes...

So the answer would be yes, there is a problem with that. But then again, this is "only" a hypothetical situation.....
 
Then the domain owners needs a new lawyer...

Aspirin used to be a TM, but was diluted to a point where it is generic. It is a product and the TM is unenforcable because of the dilution. That is a case of a TM l;osing its uniqueness...

As far as generic names.....

Windows is generic... yet TMed
Champion is genereic.. yet TMed
Cheer is generic... yet TMed
Apple is generic... yet TMed (twice)
I could go on for pages with this....

As far how it is used is very important (but I will point out you orinially stated the domain would be in the same catagory as the TM holder in post #5)

a true genereic name can be TMed in different catagories, search "Apple" in this section and you will see many posts on it.
 
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