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They claimed that it was copyright infringement because it sounded phonetically the same as Microsoft. The kid was a part-time web designer and thought it would be funny to add Soft at the end of his name.
When Microsoft got wind of the domain, they asked him to give up the domain and offered to give him $10 to cover the registration expenses. He counter offered with $10,000 because he was upset at Microsoft's offer. Microsoft accused him of being a cybersquatter.
The case resulted in a PR loss for Microsoft, as the media portrayed them negatively in a David v. Goliath type story. In the end, Microsoft flew him in to their headquarters, gave him training as a developer and an Xbox in exchange for the domain. Lawyers think that Mike Rowe would have had a great case against Microsoft had they gone to court
