I want to give you a bit of information on why this is so important to new start-ups, and how this issue personally affected me. I am sure you have also come across this problem many times.
Three months ago I purchased a domain name for a startup venture. I have created a launch page, made business cards, created a logo; I have already accumulated a lot of signups in 3 weeks time and done a bit of marketing. I even have a few customers already.
Today I received a totally random email from a guy who is the owner of a very similar domain name. He has sent me a cease and desist letter, because apparently he owns the trademark. I have double-checked this on the USPTO website and everything seems legit.
However what estranges me is the fact that he has not setup a business. He bought the domain in 2010 to setup a company and I believe he quit before he launched. Now he made me an offer to sell the trademark and the domain name, or else desist from using the name. I did not ask him how much he wants for this, because I am sure it will be some crazy 6-digit figure that I will not be able to afford.
Now I have to change my business name.
I am lucky that my startup is still new and I haven't spent a fortune on marketing. Imagine if this was a year down the line... Many founders don't have the flexibility to change names, so they have to pay up.
So dear people from HN, could we please spread out the message on why this is so wrong! Every single time I go to a domain registrar, I can't use 90% of the names, because these domain leechers bought everything to make a profit.