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File a trademark infringement lawsuit. If you take the domain name registrant to court and win, the court will order the domain name registrant to transfer the domain name to you. The court might also award you money damages as well.
Even though a cease-and-desist letter is a non-binding letter and does not have a legal effect, it is primarily sent to the wrongdoer so that it may later be used as evidence in litigation against the wrongdoer if the alleged misconduct is not stopped.
In relation to this general concept, domain name trademark infringement thus occurs when a person or entity acquires and/or uses a domain name that is otherwise protected by a trademark.
Such letters are usually written by attorneys and are often sent to stop alleged or actual infringement of intellectual property rights, such as copyrights, trademarks, and patents. A cease-and-desist letter may also be used to warn the wrongdoer against harassment, slander, libel, as well as contractual violations.
Dear [name]: It has come to my attention that you have made an unauthorized use of my copyrighted work entitled [name of work] (the "Work") in the preparation of a work derived therefrom. I have reserved all rights in the Work, first published in [date], [and have registered copyright therein].
A domain name cease and desist letter is usually written by an attorney, although sometimes it's written by the trademark owner. The letter is not a court order, so it isn't legally enforceable. The letter contains your opinion, while notifying the offender that they're intruding upon your trademark.
Dear [Infringer's Name]: We have recently discovered that your business is using the mark [mark/domain] for your service or product. We believe your use infringes on our ownership of the [registered trademark/domain] mark. We learned of your use of the same or similar [mark/domain] mark on [date].
Some well publicized examples of these types of domain names disputes are: candyland.com: Both Hasbro and an adult entertainment provider desired the candyland.com domain name. Hasbro was too late to register the name itself, but it is never too late to sue (well, almost never).