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You should have known this could happen when you registered the domain.
Do this: Decide how much the domain is worth to you. If it's just a name and you spent no time on a website or software for it, it's worth little to you.
Next decide if its worth fighting for. You will have to spend money on a lawyer. Call some lawyers and get some prices. Figure at least a few thousand dollars just to get things started.
Now try to figure out how good the name will be for you down the road. Do you really expect to get alot of customers because of that name? Could brand confusion, SEO techniques or anything else that blurs your name with theirs get you more customers? And if so, will increase legal fighting come too? How much time will you spend fighting when you should be building?
In my opinion its a weak name and not worth your time.
Try this: Tell them you'll settle with them now if they give you a few thousand dollars for it. Pretend you're small, tell them someone else made you an offer, etc etc. Try to make it faster and cheaper for them to pay you for the domain, instead of paying a lawyer to get it. Keep in mind that they probably have lawyers on staff and that legal services are probably already cheap for them. Keep in mind that they may also chase people around like you all the time.
If they won't pay you, just give it to them, and don't waste any more of your time with it.
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