jking, this is not true. When you file for a trademark (which i have) you have to list goods and/or services the trademark falls under. The only way to protect your trademark outside of your market is if your mark becomes "famous" which is decided by the courts if a suit were to take place. CKYS can also PROVE that they have used the trademark since 2001, which gives them additional ground to stand on and a foothold to SECURE the name for the computer market. You dont NEED a TM to secure your name, although it's wise to do so.
If this other company tried to sue CKYS they would lose, because they could not PROVE they are selling in the computer market. They sell to the home improvement market and their NAME wasn't/isn't big enough to warrant exclusivity across ALL markets BEFORE CKYS started branding the Cyberkey name.
Two products are considered similar if the public would be of the opinion that the services or goods in question are of the same company or of economically linked companies. So, for example the public would not normally expect a company that makes photocameras to also sell potatoes. A potato distributor could therefore use the trademark Kodak for his potatoes, without the photo company being able to do anything about it. Of course, the more famous a trademark becomes, the bigger the chance that the public's opinion would change. The trademark Coca Cola for example appears on many different products, ranging from T-shirts to duvets. Given this information, the public would easily think that somebody selling pillows with the Coca Cola trademark on it had something to do with the Coca Cola company. Based on this, the trademark holder can act against such use of his trademark.