Buying domains in bad faith for no other purpose than to sell them to people who have legitimate company names or trademarks will result in them being wrested from you by the UDRP arbitration if the company wants to invest the ~$1500-3000 fee.
Yes. Today it is not a good way to make money. Famous trademark holders are not tolerant of those who try to profit off their names.
When STEPHAN spoke earlier of having "thousands" of domain names, it reminded me of a case out of California and I meant to make mention of it - although the case and the circumstances have nothing at all to do with Stephan and
his domain names.
In some cases, registering thousands of names can lead to a violation of the Anticybersquatting Consumer Protection Act and this can lead to a lawsuit, if the domain names are being registered for the purpose of testing variations out in the marketplace. The "tasting" of domain names has led to at least one suit that was successful for the trademark holder/plaintiff. The suit combined the tasting of domain names with typosquatting to see which domain name attracted the most traffic. See
Verizon California, Inc. v. Navigation Catalyst Systems, Inc., 568 F. Supp. 2d 1088 (C.D. Cal. 2008).
Because there are various ways one can run afoul of the law, if someone is starting a new business, they would be smart to sit down with an attorney in their area to go over all plans and the legalities involved.