Thanks to everyone that offered me advice in this thread, some of it useful, some of it plain stupid but funny as hell!
@Wrangler i know what you mean, but its always the case, could I have got more? who knows but i feel better knowing that I didn't settle at their first offer.
@thesaintv12 The law firm that dealt with this "case" are renownd for fighting on behalf of their clients with regards to domain parking etc, and domain trademarks etc. They brag about it on their website about how many cases they won and how many domain names they re-claimed - so I am absolutley shocked that they settled with me. The domain/site i had was only 2 weeks old, had not even made $4 in adsense, and it was one of many niche sites I just started, so I did not expect it to make a lot of money on its own anyway. So all in all, a good outcome I think. BTW, I think the .co IS available, but in the settlement agreement contract I had to agree not to register any other domains carrying any of their family of marks and also to handover/release any other domains that may be trademarked with them or their clients. I think i'll just sit in the corner, count my money, and consider myself lucky and not push my luck.
@ BrackhatChina Now this is amusing to me. Thank you for the compliment, however I think this whole saga was a bit nerve wrecking for me and I consider myself as being lucky with the outcome. There is no guarentee that the outcome would be the same for other domain names in this niche or trademarked with this company. You are a brave man to want to do this on a large scale. I will PM you with some information, but I'd rather NOT play any involvement in deliberatley registering trademarked domain names with the intention of making money from a settlement.
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Oh by the way, you'll never guess what just came through the post this morning (via snail mail)... ANOTHER letter from a law firm for a completely different website domain I have, and a completely different law firm in a completely different state in America (i.e This is totally unrelated to the last case). I'm not sure how to feel about this? Excited that I could potentially make some money AGAIN?, or annoyed because I shouldn't push my luck again?, and just release the domain name and walk away? Nevertheless, I found it amusing to see the letter! Do I have "SUE ME" written on my forehead?
All the best,
N