Depends what you do with it. Consequences can range from nothing; or even a modest payment to you if you haven't parked it, to huge consequential damages for passing off if you use it to try and represent, or leverage upon the TM owner's intellectual property rights. This is a huge and 'case-by-case' subject which canot be covered in a simple reply...
Woser case senario...
Loss of the domain.
Loss of all monies gained from the domain.
Loss of monies for the TM holder.
$100,000.00 fine per domain under the Lanham Act.
Payment of legal expenses for both sides.
Label of cybersquatter on your record..
I was just reading this old thread and wondered about the opposite question:.
What is the best case senario when owning a TM domain name?..
Well, it depends on exactly what you mean. If somebody sues you under UDRP/WIPO and they don't have solid grounds to do so, you could potential countersue for a reverse hijacking attempt, although you have to show a strong element of intent and bad will on their part.
In most instances, "best case" would be an agreement to let you keep the domain...
My old standby: http://www.taubmansucks.com/.
Read the story and difficulties/time one man went through - and then ask yourself if " amizaughan.com " is really worth it.
Holy crap I read that whole thing. What an ordeal...
I pulled an all-nighter the first time that site was brought to my attention - trying to read every motion and every little outside source that he brings in It really is addicting... should have put a disclaimer on my link that you should only click if you have a good deal of free time on your hands!.
DNQuest.com summarized the worst case pretty well above. Best case when owning a TM'd domain name is that the TM holder never takes offense with your use of it.
I'd estimate 95%+ of TM squatted domains will never receive a C&D, UDRP or lawsuit from the TM holder. That doesn't make it right though. TM squatting is generally a bad business strategy...
Check out the story of "moantones.com" and how one company decided to release the well-paid lawyers into the fray and then were shot down by some regular guys who stood up and refused to let their domain name be taken from their boney fingers!.
The moantones.com story starts at "The Trademark Dummy" and then goes on for ages...like any weasel lawyer will likely do when the pay is by the hour!.
Come on! My wife is one of the finest lawyers so don't be offended!!..
AS a warning, there are 115 acts to the story....
Funy thing, he talks about the hundreds and thousands of dollars Taubman spent and only $2500.00 that he spent... but no mention on how much tax payer money was spent. Judges and clerks don't work for free.
Great ending, and one of the decisions that protects free speach. But he had the time to put into the case, I would guess most of us don't. So if you want to fight a battle, this is what you need to be prepared for...
Good point DNQ. Other countries force the loser to pay court costs as well...