I have personal experience of this. I as a classic case of passing off, it was obvious but Nominet made me jump through some very expensive hoops to secure the name. It had been registered by a Panamanian company. The most recent event was much more simple, a very similar name was taken by a UK competitor, a simple letter from our solicitor put the fear of God into them, the company name, website and limited company had been taken down within a week.
Nominet are hugely unethical, they should never issue a trademarked domain name to anyone other than the tradmark owner.