I don’t know why lawsuits like this get filed. Alanis Morrisette (who owns and uses alanis.com) sues Russ Smith over alanis.net (which, he alleges, he has been warehousing). More damages accruing to society because NSI turned the .net TLD into a sandtrap for silly litigation (but that’s a rant for another day).
Instead of making everything a federal case, how about this instead: a without prejudice demand letter saying: “if in the future you use this warehoused domain name in a manner which infringes, we’ll sue, and if you sell this name, we’ll send the new buyer a copy of this letter.”
p.s. The ZDNet article is entitled “Alanis Sues Cybersquatter.” I’m one of those trademark lawyers for famous mark owners you read the horrible things about and I’m offended that someone should be labeled a cybersquatter on the basis of a filed complaint.