Originally Posted by NetHorse

It is trademark infringement, he's pushing fleshlights on a domain with the trademarked word fleshlight in the domain name.

That's not the point though. He knew that he would need permission to use that domain, got permission then spent years generating traffic, serps while making 10s of thousands for them with that domain name.

Until one day they changed their minds, threatened him and demanded he transfer all his hard work with the domain name to them. Whether or not that was the strategy all along isn't the point either.

For example, I could create a brand new product today, encourage people to use my trademarked term to better promote my product through an affiliate program. Let my affiliates spend the next 3-5 years building an empire of sites with my trademarked term, then get greedy and demand all the domains be transferred to me.

I could claim it wasn't my intention all along, but the end result was I fucked over everyone and took all their hard work.