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Depends on the visibility of the domain, the exact word in question, and its useage on the Net and before the Net.
I had an adult domain once like this. I offered to sell it to the company for a reasonable amount and they told me to GFY that they would just sue me to get. I countered with the fact that it was a generic sex term used in the adult industry before the Net even started.
They had their attorney send me the usual threat letter and I sent them back a harsh letter in kind.
Needless to say one of their competitors came along and made me a sweet offer for it so I sold it to them and they are still using it successfully without any lawsuit on it.
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