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for the time being though, might i suggest throwing up some content.. maybe something similar to this post is a good start?
edit: sorry.. i should have been clearer. do not reply.
I am skeptical. If they were really going for all websites ending with "bay", I'd think some bigger ones would be on the list... like piratebay. Unless they think that's a hopeless case.
Even if your domain "theplayersbay.com" represents an online auction site, I fail to see how it can be seen as intrinsically associated with eBay. It's like Microsoft trying to prevent all software compnies from using the "soft" suffix or the "Micro" prefix. I suspect that your domain was flagged by a poorly written pattern analysis bot and nobody at eBay has bothered to do any due diligence before firing off this "c…
http://news.ycombinator.com/item?id=1633106
I agree that in this case, "theplayersbay.com" probably doesn't have much to worry about.
In particular, tptacek's comments about PerfumeBay are relevant to your situation.
Short version: yes, you should be worried. Even if you are in the clear, legally, you may have to deal with the legal system itself. Being legally vindicated can still be expensive.
Even if your domain "theplayersbay.com" represents an online auction site, I fail to see how it can be seen as intrinsically associated with eBay. It's like Microsoft trying to prevent all software compnies from using the "soft" suffix or the "Micro" prefix. I suspect that your domain was flagged by a poorly written pattern analysis bot and nobody at eBay has bothered to do any due diligence before firing off this "c…
It's important to recognize that this is a Cease and Desist and not an actual legal action. It's a threat of a legal action.
You really have two options -- either you give up the domain name or you fight. If you choose to give up the domain name, respond that you're doing so and I'm sure you'll get a brief letter thanking you for your cooperation on the matter.
If you choose to fight, and that includes ignoring, responding with questions or telling them that you think they're wrong, don't expect to get any further response until they actually file to forcibly take the name from you.
If this happens, you will have to pay money to defend yourself (no lawyer except maybe the EFF?) will take this pro bono or on contingency. You could also wait until they file legal proceedings to cooperate, which would enable you to keep the domain name for a while longer and force them to spend some money, but you'll still lose the domain in that case.
For now, I'd personally ignore it. Either they're serious or their not. There's no reason to do anything until they show whether they're committed to getting this domain from you.
Should eBay choose to pursue this and you choose to defend it, you may make a good case. I'm not sure if your site has anything to do with auctions, as I can't reach your site ATM - I'm guessing you've been slashdotted. You may argue that you do not share any similarity to eBay and "bay" is a common word.
Right or not however, changing your domain could be the easiest course of action. Especially if you're not attached to it yet.
My guess(1) is that "Edith" is a machine that simply emails this to everyone who registers a domain with 'bay' anywhere in it. I'd wait for actual contact from a living human. (1) I'm not a lawyer and this isn't legal advice, yadda, yadda.
Don't worry about the legal disclaimer - I don't have an "Edith machine" nor do I want one ;)