There's nothing wrong with getting a desired character name because you were the first person to create a character with that name on a given server. But it does kind of smart if you're a Star Wars: The Old Republic
subscriber with a burning desire to use the name "Xylophone" but can't, especially if that name was just snapped up by a free-to-play character who hasn't even made it off of Tython. It's with that in mind that the game is instituting a series of name releases for free-to-play and preferred status players.
If you're a free-to-play or preferred status player, this does mean you're at some risk of losing your name. Characters below level 10 who haven't been played in 60 (free) or 90 (preferred) days will need to be renamed, as will characters below level 30 who haven't been played in 120 (free) or 180 (preferred) days. Characters 30 and above will be exempt across the board, as will all characters of subscribers. So you might be able to get your desired character name back! Or you'll find out that Xylophone is actually a level 31 Juggernaut, which is still kind of neat.