The wording of their terms are a bit of a joke. If the fact that a TM exists on any LL combination is enough to rule it out of the auction, there would be no auction, no LL would qualify. So I'd just like to point out that no two letter domain violates a trademark. Owners may violate trademarks depending on how they use them. Every LL is going to have an existing TM on it. Even just in Canada, every LL has an existing TM on it, let alone the US or world wide.