Canadian domain name lawsuit

I am partners in a site called racehorsetrader.com and have been contacted
by Trader Publications with the threat of a lawsuit.  They own the trademark
'trader' and want us to cease using the site and domain name.
Are there any precedences in Canada over this type of case?  Can they
actually win a court case where someone uses the everyday word 'Trader' in a
domain name/web site?  Or is it more likely they are trying to manipulate
us, as they undoubtedly have way more money to spend on lawyers than we do?
My first reaction was to let them take us and spend all kinds of money and
we just represent ourselves, tell our story and spend nothing on lawyers
(but people say that I watch too many movies).  I know we have the right to
own the domain name, but does this mean we can't use it at all?
This is all very distracting, as the site is doing very well and we are
ready to start selling ads on there.

Any comments or links that might help me become more informed before we make
a decision?

thanks
Dean Lovell
racehorsetrader.com

HTML: hwg-business mailing list archives, maintained by Webmasters @ IWA