Domain Re-registration and Trademark Issues

wonko99 asks: "Does anyone know of a legal precedent where someone owned a domain name, and then let it go (i.e. didn't pay the renewal fee), only to have it bought by someone else, and then turned around and sued the new owner? I got a nasty letter the other day telling me that a domain that I own belongs to someone else (it was on hold, and when the 'holding' period was over I bought it), and threatening to sue me for it. Any help would be appreciated. They say they own the trademark to the name... but I say they let it go because they no longer wanted it... " (Read More)

Is it just me or do other people think that this seems downright dishonest. If a company had a domain name, and then releases it, they have given up rights to the domain. As I understand it, they should not have the grounds to sue on any issue, especially trademark issues.

How does this affect the trademark aspect? Could the company lose their trademark by letting the domain go?