When it comes to certain domain names, my lawyers advises me to own the domain (preferably through an offshore company), point the DNS addresses to NOWHERE (so that no site appears typing in the domain name). This means you are not making money on the site.
Then, sit and wait. They will make an offer to you. Lawyers start by being threatening with gestures. In the end, they are pretty rational people that negotiate business.
Lawsuits cost much, much more than $2000-3000.
Marc Lesnick
Conference Organizer
Casino Affiliate Convention
http://www.cac2006.com
Sept 14 -15
Las Vegas