Straight from PADI. Controversey and case closed, use is allowed. However, you can't use the word "PADI" in the URL, so maybe that's where they went wrong?
PADI Worldwide Corp. (a California corporation, hereinafter "PADI") has the right and authority to use and sublicense various marks owned by International PADI, Inc. (a California corporation). These marks include, but are not limited to, Professional Association of Diving Instructors, PADI, certain logotypes -including a diver placed on a world, a mark for The Undersea Journal, as well as other marks, including Specialty and Certification marks. PADI relies upon the foregoing marks to indicate the source of origin of its services, certifications and products, so that the public will be protected; and its instructors, Dive Centers, Resort Dive Operators, Dive Boat Operators, students and others associated with PADI will receive the highest-quality services and products pertaining to its business.
To provide its members with the ability to advertise, promote and indicate the source of origin of the PADI services, certifications and products they provide, PADI Members are hereby granted a license to use the forgoing marks on promotional materials only, specifically printed, film or video formats, and software, fixed media, such as floppy disks, hard drives or CD-ROM, or any interactive digital or broadcast media or methods, including, but not limited to, internet or World Wide Web Sites.
The license shall not extend to the provision of other printed materials, such as manuals, books, instructions, clothing or products or any other materials whether or not they are manufactured, sold, distributed or licensed to others by PADI.
This license extended by PADI shall only be with respect to (1.) Printed advertising and promotional materials, (newspaper and periodical advertisements, telephone-directory advertising, handbills and signs); (2.) Film and video format promotional materials such as television commercials, slide shows or promotional videos; and (3.) Software, fixed media, such as floppy disks, hard drives or CD-ROM, or any interactive digital or broadcast media or methods, including, but not limited to, internet or World Wide Web Sites; none of which shall include use on any item or product intended for resale. The word "PADI" (padi) may not be used in internet domain names.
The foregoing license for advertising and promotional use shall in all respects follow the exact format, character, general appearance, type style, background and proportions of the marks originating from PADI. In no case shall the marks be combined with other marks, symbols, language or be in a format and appearance other than that actually used by PADI. The full trademark must be used; truncated or partial use of a mark is not authorized.
This license shall be personal to the individual member and shall be nontransferable, nondivisible and not capable of being sublicensed in any manner through any party.
Notwithstanding the foregoing, PADI shall have the sole right to disapprove of any promotional materials prepared and shall be the sole judge of the criteria of whether it meets the standard of this license agreement. To this end, any suggestions or requests by authorized members of the PADI staff as to the usage of the marks shall be complied with as soon as possible to avoid mistakes, deceptions, dilution or other problems that would be detrimental to the foregoing marks.
Regardless of the foregoing license, PADI shall have the right to institute and bring any suit or any other action necessary to protect its marks as to any person, firm or corporation now or prospectively using the marks or any similar marks, derivations, analogs, trade names, fanciful scripts or designs.
This license shall extend for the term of membership, which shall be terminated forthwith upon termination of the member’s relationship with PADI.