Someone brought up the paint.biz case. That was a real interesting one. As I recall the camplainant in that had actually sold several cases of paint with the paint.biz mark on the cans. And applied for, maybe had even received, a US TM. This was several months, maybe even a couple of years prior to the release of that TLD, though I'm not sure if it was prior to the ICANN decision to create it. Last I recall the company won the name at arbitration, I don't know if it ever went beyond that.
WWJBD?
(what would john berryhill do?)