Hi Ty,
I think the drs you include is pretty clear - the champagne.co.uk was resolving to sites involved in the sale of goods other than champagne (in fact it wasn't selling champagne at all until the compalint), which they infer as trading off a name of which they have rights.
I think their concern is that any champagne related site should be involved in the sale of champagne only, wwhich mine is.
I'm also not convinced that they'd be able to win the trading off claim in court either.
I've had a conversation about something very similar with a friend who's a barrister and expert in this field in the past, and as he puts it you could stand on the street handing out flyers saying "get 10% off at McDonalds" with a map for the people to follow.
If when they get to the destination it is in fact a KFC, that is not trasding off, since when the person gets there they can clearly see its not a McDs and make the choice of whether they want to buy or not.
The problem arises if they follow the map and end up at McDougals burger bar.
So as my laymans interpretation of that, if you're promoting champagnes and the sale of champagnes, or even car insurance, then thats fine.
The problem would be if you were selling other kinds of wine that the visitor might confuse with champagne.
Thats my understanding of it anyway, but I stand to be corrected.