Companies and products like Xerox, Kleenex, Hoover, Jell-O, that are used generically have the most twitchy trademark lawyers. They need to actively defend them to keep them from becoming generic.

http://en.wikipedia.org/wiki/Generic_trademark

I know someone who had intel in their new business name/URL and they got a very clear letter from Intel's lawyers saying 'so sorry, can't use that', even though the business was transport-related.

Just because someone gets a letter from a lawyer saying they can't do something, doesn't mean it's true! Lawyers try to pull fast ones all the time to get what they want, and most people will go along with it out of unfounded fear.

I understand. It was giant corp. saying, "Do this or we drag you through court and lawyer fees." The name of the business was changed after soft launch (to accomodate Intel) but the new name was chosen before hard launch. Considering the founder was very bootstrapped, it was what it was. Not sure I wouldn't do the same in his shoes.