The trademark is invalid. Bitcoin is covered within the MIT License and the term 'Bitcoin' is used extensively within the software covered by the license. First use and all that.
One could easily argue that the this nob polisher's use of the term Bitcoin in any commercial enterprise would be confusing.
This is a fail even if Jeff Bezos tried it.
You are very correct, and one would trust this would be discovered in the course of due diligence in the processing of such an application.
However, we have the capacity to present such facts before hand to stop it before it even reaches that point.
Just in case...