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they are pretty much fucked, unless they have a trademark or copyright claim
if I were you I would put the site into use immediately.
put something up
make sure to put up some logos - something simple that you create that is original
put a notation on the bottom of the page with something to the effect that
thissite.com Copyright ? 2002 All Rights Reserved.
thissite.com in any form whatsoever appearing on this site and throughout the internet are service marks of thissite.com
Also, contact the registrar, and have them "lock" the registration to protect yourself. It is easy to do, and will save you from a headache in the future.
If they give you a hard time get a lawyer.
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