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I flipped one for $3500 recently.
Without knowing details it is impossible to give advice. I always ignore the first letter and see how serious they are. Any lazy fuck can get a C & D sent out. After that first letter most people/companies are not determined enough to follow through if you blow them off. If they do, often a negotiation starts. Do your research and know what you are doing or find someone that does.
Unless you are blatantly cybersquatting the domain issue is a very grey area. If you have a legitimate side then don't let some asshole try and bully you out of your domain.
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