What's the family business then meant to do, cease operating their family business under their generations-old family name?
None of that other stuff is relevant to domain name. The "Amazon" camping shop in Pikesville, Ky doesn't need to change its business name (though they probably should if they set up shop in Washington state).
> What's the family business then meant to do, cease operating their family business under their generations-old family name?
No, just take another domain name. Millions of people have probably landed on nissan.com while trying to research a car, and been confused and frustrated in disbelief. And this is because one guy with the name "Nissan" beat them to the punch in the early domain-name grab. He could have just as easily taken uzinissan.com and enjoyed his 11 hits a month on that domain.
Say that I am a mediocre violin player. But I happen to own a rare Stradivarius. A rich and successful violinist writes to me and asks to buy my violin. I refuse his offer. So he sues me, and says to the court that because he is so famous and so technically adept, the violin should rightfully belong to him. Is that fair?
So an already small company should change their domain, and potentially lose customers as a result, just because a larger company wants to use it?
> beat them to the punch in the early domain-name grab
That is to say he owns the domain. A third-party have a better use for it doesn't define ownership.
> He could have just as easily taken uzinissan.com
It was initially registered due to company names that contained "Nissan" -- registering using a full personal name doesn't make much sense in that case.