For example, as of writing this, Vanillacoke.org is available for purchase. There would be nothing to stop me from buying this and Godaddy or whichever Registrar profiting from it. Why are domain names given a pass here in terms of IP law, why isn’t this considered violation? I don’t see how this is any different than someone selling Vanilla Coke T-Shirts for example.
Because trademarks have industry and geographic limitations
I can’t find the trademark for Vanilla Coke, but this is the one for Vanilla Coke Zero. It says:
Goods and Services
Non-alcoholic beverages, namely, soft drinks; syrups and concentrates for making non-alcoholic beverages, namely, soft drinks
032 - Beers; mineral and aerated waters and other non-alcoholic drinks; fruit drinks and fruit juices; syrups and other preparations for making beverages. - Beers; mineral and aerated waters and other non-alcoholic drinks; fruit drinks and fruit juices; syrups and other preparations for making beverages.
If I decide to use the domain name vanlillacokezero.org to promote my vanilla and cocoa plant nurseries I am in no way infringing Coca Cola’s trademark. If I use it to promo more soft drinks or soft drink related stuff, I am.
Because you equally can slice your piece of land into chunks, label them whatever known trademarked words and lease out. No reasonable person will perceive those chunks as actually associated with the namesake brands.
Top level domains are no different to your chunked piece of land in that regard. People can pass by and see the domain names pretty much like your labelled chunks.