One of the downsides of automated domain registration systems is that there are no checks on trademark infringement.
However all registries either have a dispute resolution policy of their own or can refer the parties in question to one of the internationally recognised bodies that can act on their behalf.
Skype, for example, ran into issues in the UK, where another company had grabbed the co.uk domain.
The decision (PDF) makes for interesting reading.
Needless to say any company attempting to use such a recognisable and unique word as “skype” for their domain name would have serious issues defending it on the grounds of “coincidence”. The judgement goes into this in no little depth.
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