Naughty America offers "amnesty"?

[softball]

Originally Posted by Far-L

As long as you don't use that domain in an adult entertainment themed context we would not and could not have a problem with it... but the second you did use it for adult then we would be sending a polite letter.

I bet you that they already tried the approach you suggest and now they are down to the last effort before pulling out the lawyer guns.

I suppose that is possible, but it still sounds like bullying. You know and I know, it has nothing to do with who is right. These guys can ruin someone financially, lose a suit, and walk away satisfied that the threat has been carried out.
Typosquatting is something I have never heard of and seems like a specious argument designed to threaten.