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Back in the early 1990's, a head shop down here in south florida was called "joys r us". They got the same heat from toys r us and they ended up changing their name to "we b joys". I don't know if they fought and lost or just caved in.
If you decide to fight a big corporation over something like this, be prepared to spend a lot on legal fees. If the domain isn't that lucrative, the juice may not be worth the squeeze.
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