He can certainly file with the WIPO and see where that goes.
The big issue is what bearing does your usage have upon their trademark? Is it in the same industry?.
Generally, if you're legitimately engaged in a different sector of the economy, and not trying to leverage their good name, you're not infringing.
You may not have done yourself any favors by offering the domain, since that could be construed as an admission that confusion exists...
Tell him to pound sand.
The fees alone will set him back almost $1500 to even file a UDRP..
Getting a competent attorney to write it so that he might win? That's going to take it a lot higher than $2k.
Tell him either meet your price or you are going to continue with your development of a gay polygamists social networking site, which is a safe bet not at all what he has a TM for.....
Response to Mr. John: yes, it's the same industry.
Response to Cartoonz: what is a UDRP? I honestly don't want that site, so I rather sell it for money than have it sit there.
Since we are in the same industry, is the domain technically his? Can I legally continue using it?..
UDRP is the process he'd have to use to take it from you, and contrary to what he's telling you he is not guaranteed a win...
You need to know more about his "supposed" TM as well.
PM me the real domain and I'll look at it if you like...
If you just want some cash with no hassles and be done with the matter, then accept his $1000 offer.
You could counter it, but once you do, his offer is no longer valid. He could choose to walk away. Not to say he couldn't right now, but is far less likely. To put another way ... take the pretty sure $1000 -or- roll the dice and hope for more.
In regards to whether you have legitimate rights to the domain - from what you describe, you sure do!.
So a UDRP challenge may not get too far; not geared towards handling disputes in which both complainant and respondent have bonafide TM claims to the same domain.
If you don't want to sell it, but also want to minimize future TM issues ... then another option is to redirect that domain to your new one - that will make it easier for the major search engines to update their links without your site losing much, if any, list ranking.
Where can I conduct a trademark search? Trademark Electronic Search System (TESS)..
You haven't given enough info for anyone to give a real opinion.
1. Is the name in question descriptive or is it unique?.
2. When was their TM applied for? First use? When did you actually start using the .org?.
3. What area of business are they in? What area of charity are you in?..
Then there may be grounds for confusion.
The big mistake was to contact the TM holder and offer to sell the domain. Had you kept quiet you might have never heard from them.
Which domain was registered/exploited first ? .
If you no longer need the domain, maybe $1000 is a good price. Perhaps you should consider taking the money, whether they are right or wrong...
Can I message you guys privately...then I'll provide you the real info. & hopefully all of this will become much more clear. Please don't use acronyms or any type of abbreviation in your responses. I know someone used "PM" earlier. I'm sorry, but I'm new to this and don't know what that means.
Thank you for your help...