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@youronlyone

Domains dont inherently infringe on trademark by the nature of the name themselves.

For example if I got (Assuming it were free) https://apple.io and I used that domain to sell hats shapped like apples it would not (And could not) be considered a trademark violation.

Companies may choose to block swaths of domains in a scheme like this (And yea its problematic)... but its important to note this is not about protecting trademarks as this system would be unable to determine infringement on trademarks since a domain name alone is not enough to determine if it infringes.