Sometimes a powerful company tries to force a smaller one to give up a domain name that was legally acquired in good faith by the smaller company. Because trademark conflicts are ultimately resolved in court, a business that can easily afford to pay lawyers is in a powerful position to sue the smaller company for trademark infringement (assuming there is any basis for doing so, which there usually is). When the smaller company realizes that it will cost tens of thousands of dollars to defend the suit, the big guy proposes a settlement under which the small company parts with the name for a relatively meager sum. In other words, the powerful company ends up getting what it wants simply because the court system is manifestly unfair to those who can't afford attorneys.

There are strategies to fight this sort of bullying. If the small company has the resources, of course, it can mount a defense and actually win. In addition, the Internet community has been extremely hostile to online bullies, and out-of-court campaigns sometimes make them back down. For more on this issue, visit the Domain Name Rights Coalition at www.domainnamerights.org.