If the case goes to UDRP it's likely they'll find in favor of the complainant and the OP will lose the domain. If they find in favor of the complainant the OP won't have to pay any penalties. If he transfers the domain to the complainant before the UDRP is filed they save the filing fees which are $1500 for a single arbitrator and up to five domains (typical scenario) >>
Schedule of Fees under the UDRP (valid as of December 1, 2002)
This is why I say it's wise to try to negotiate a settlement out of them that is equal to or less than the filing fee + lawyer expenses. I've done this on a few occasions myself. I've also sold straight up blatant trademarked domains for many times the UDRP filing fees. I've also just handed over domains with no compensation to avoid any hassles. I once blew a negotiation by getting too greedy. The party in question was offering a few grand for the name and I wanted a few more and after a few back and forths they just said "fuck you, give us the name or we sue you instead". You win some you lose some.
You could also attempt to negotiate other business arrangements with the company, especially if your SEO skills are superior to those the company has working for them. Opportunity sometimes reveals itself in interesting ways. Don't shoot yourself in the foot by being a jerk.