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Italian trademark => Can they sue us for a DotCom ?

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DomainEmpire.com

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We've been contacted by the lawyer of an Italian company which registered in 1989 "Le Auto della Settimana" as trademark.

Just to help anyone understanding what the trademarked sentence means:

"Le Auto della Settimana" = Something as "week's cars"

Well, they registered their trademark in Italy (not European or Federal Trademark); can they sue us ?
In your opinion, could their lawyer accept a compromise for 1,000 Euro to get that domain ?

LeAutoDellaSettimana is a magazine name and a Tv program as well but only known locally in a region of the north Italy, nothing of really famous.
 
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