alcaucin:Why would they want to buy the name ?
because they want it.
alcaucin: Because it was already a name does that mean they couldn't use same ?
You cant have 2 identical domain names.
alcaucin: Could she have sold say INXS merchandise without putting up a disclaimer saying it wasn't an official INXS site because she had the name first ?
She could have registered the name as a patent , if she did before they did.
alcaucin: how strong a bargaining chip 'you'd' have if you got lucky enough to land the 'next big things' domain name
VERY powerful.
Back in the day when i promoted bands and clubs, a friend registered the name 'hard rock cafe' in australia.
When the HRC people wanted to open a branch in Australia they had to chose a new name or buy the one already registered.
$440,000 later they owned the name in Australia.