Hi Anita,
Thanks for your comment! We’re happy to help, although we’re not aware of registrars actively suggesting that registrants register infringing domains when their first choice is already registered.
However, here are a few examples of registrars being taken to court on infringement matters that you might find useful:
Domain Name News reported in May that hosting company SolidHost, NL sued the domain name registrar NameCheap.com. A hacker had reportedly stolen SolidHost’s name and used NameCheap’s privacy service, “WhoisGuard,” and NameCheap initially refused to reveal the owner of the domain. Ultimately, the court ruled that NameCheap was responsible and liable for contributory cybersquatting. The article also contains a link to a pdf of the court documents.
http://www.domainnamenews.com/featured/namecheap-sued-domain-whois-priva...
In April, Ubid, Inc. sued the Go Daddy Group over its domain parking practice. Through this service, Ubid claimed that Go Daddy is sitting on over 100 names containing the words “ubid” or “red tag.” The article on USLaw.com describes the case in greater detail and explains Go Daddy’s parking service. It also links to some legal documents.
http://www.uslaw.com/library/Trademark_Law/uBid_Sues_GoDaddy_Cybersquatt...
Back in 2007, Microsoft sued domain registrar Red Register, saying that Red Register owned up to 125 infringing names that were confusingly similar to Microsoft’s trademarks. Red Register was cybersquatting these domains. An article in the Washington Post goes into more detail, and also mentions similar suits filed by Yahoo! and Dell.
http://www.washingtonpost.com/wp-dyn/content/article/2007/12/24/AR200712...
I hope these cases help to at least get you started in the right direction. Best of luck!

In our meetings, concerns about the enforceability of the domain name space constantly came up. People see infringement and scams growing at a rapid pace and find that the enforcement tools currently at their disposal are ineffective.

Domain Registrars -- Contributory Infringement?
Can anyone direct me to recent case law on this topic? I am looking at Lockheed Martin Corp v. Network Solutions, Inc., a case from 1999, which is kind of old. I'm trying to find out whether there have been any legal developments with respect to Domain Registars suggesting variations on a domain name (containing a registered brand), when the Registrant tries to register a domain name that is already taken. Seems to me that by "suggesting" numerous variations (with hyphens, nearby city names attached, etc.), the Registrar is inducing an infringement, but I need to do some legal research. Suggestions are welcome. Thanks.