You see in this situation I did side with microsoft.
The site might have been his name sake, but he does freely admit that he thought up the name of the site as a parody of microsoft. therefore he was taking advantage of their company name with a homonym of the name (that means word that sounds the same).
Therfore he was clearly trying to leech off of the sucess of microsoft, and to new computer users any one just hearing the name microsoft may give an air of grandure, since they aer such a well established company.
I'm sure Microsoft only agreed to a payoff because of the way the media latched onto the story and tried to turn microsoft into the big bad industry giants...
Any company would react the same way. what if I started a sport show manufacturer called Mike (Nike), or Nikee (Nike again depending on how you say it). a comic character range called TroubleGum (Bubble Gum).
Company and brand names are a powerfull tyool and reputation can either make or break a compant, Microsoft was right to defend its trademark against this guy.
OK, i see your point. if he did fight against it, i was already sure that he would lose eventually. But man, they could have offered a bit more than $10 to begain with. I'm sure the guy went through more trouble than to make it be only worth $10