Domainers Lose Big Time In Verizon Cybersquatting Lawsuit

from the poor-domainers dept

Eric Goldman has the details on a lawsuit that should make various typosquatting “domainers” (those who register tons of domain names on typos or other variations of a brand name) a bit nervous. The court came down hard on domaining in general, and domain “tasting” more specifically. The domainer in question tried to get around the law by claiming that by just “tasting” the domain (i.e., holding onto it for the 5 day grace period before you have to pay for it), they weren’t running afoul of laws concerning registering someone else’s trademarked names.

What’s odd, though, and Goldman doesn’t seem to understand it either, is that it wasn’t just the domainer who got slammed, but the registrar through which the domainer registered the domains. That seems questionable, as the registrar should just be a third party service provider, and protected from any liability from the actions of the user.

Filed Under: , , ,

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Domainers Lose Big Time In Verizon Cybersquatting Lawsuit”

Subscribe: RSS Leave a comment
13 Comments
Freedom says:

5 Day Period is a Joke...

The 5 day tasting period is a joke – buy the domain and pay up.

This is a pure mis-use of technology to get around the rules and avoid having to pay for the domain.

I suspect the registar was slapped as well since they probably had more than just an indirect service relationship (speculation here).

Accept for some of the gray area on this, the overall ruling is a nice surprise.

Freedom

Christopher Shaw says:

I prefer Bob Parsons' name for

He calls it “domain kiting”, and I am more inclined to agree with his sentiments.

I have heard than ICANN is going to stop refunding the additional 20 cent fee charged when registering a domain when it is released during the grace period. This will go a long way towards stopping this practice.

John (profile) says:

Never understood tasting

I’ve never understood why any registrar would offer “tasting”. Right now, godaddy is offering registration services “$9.99 per year and lower”. Granted, there’s probably some fine print to get this rate, but is this really so expensive to some people that they need to “taste” a domain for 5 days to see if it’s worth it? What the ****?

And how much “tasting” can someone really do in 5 days? None at all… unless the domain is loaded with a pre-made website full of links, spam, and click-throughs. But, still, $9.99 a year. Just pay up already.

Patrick McDermott says:

“it seems to me the registrar is the one allowing it … That’s who needs to put a stop to it.

You would think they would want to since it earns them nothing when most tasted domains aren’t bought.”

The big time domain tasters OWN their own Registrar(s).

Even if they didn’t ,a Registrar would profit because the taster is tasting thousands of domains and will keep some.

“He calls it “domain kiting”, and I am more inclined to agree with his sentiments.”

Kiting and Tasting are related but different.

Kiting is tasting the domain. Dropping it. And tasting it again. If this is done over and over the Taster earns income
on those domains without ever actually paying for them.

Although the domains may only earn a penny or a few, so many domains are tasted that the income adds up- many thousands of $ a day is possible. Even 5 figures is possible.
—-

“And how much “tasting” can someone really do in 5 days? None at all… unless the domain is loaded with a pre-made website full of links, spam, and click-throughs. But, still, $9.99 a year. Just pay up already.”

Tasters use automated software and relationships with Registrars (usually their own)to grab expired domains the moment they are released.

Tasters can do a whole lot of tasting. Thousands and thousands.

The Parking pages with clickable ads that are generated for the domains are done so automatically based on the keywords in the domain.

But it doesn’t always work properly.

That’s why you’ll often come across a Parked page that has ads that have no real relationship with the domain name.

The keywords could be tweaked but that’s not what the Taster’s do as it’s too time consuming.

The Taster’s are strictly looking for domains that get natural type in traffic.

The object is to find domains that will at least earn more than the renewal fee.

Those domains are kept.

By the way, Taster’s do not pay regular retail or even discounted domain registration fees.

They pay the exact wholesale cost of $6.50 plus 20 cent ICANN fee since they operate their own Registrars.

Patrick

Patrick McDermott says:

“it seems to me the registrar is the one allowing it … That’s who needs to put a stop to it.

You would think they would want to since it earns them nothing when most tasted domains aren’t bought.”

The big time domain tasters OWN their own Registrar(s).

Even if they didn’t ,a Registrar would profit because the taster is tasting thousands of domains and will keep some.

“He calls it “domain kiting”, and I am more inclined to agree with his sentiments.”

Kiting and Tasting are related but different.

Kiting is tasting the domain. Dropping it. And tasting it again. If this is done over and over the Taster earns income
on those domains without ever actually paying for them.

Although the domains may only earn a penny or a few, so many domains are tasted that the income adds up- many thousands of $ a day is possible. Even 5 figures is possible.
—-

“And how much “tasting” can someone really do in 5 days? None at all… unless the domain is loaded with a pre-made website full of links, spam, and click-throughs. But, still, $9.99 a year. Just pay up already.”

Tasters use automated software and relationships with Registrars (usually their own)to grab expired domains the moment they are released.

Tasters can do a whole lot of tasting. Thousands and thousands.

The Parking pages with clickable ads that are generated for the domains are done so automatically based on the keywords in the domain.

But it doesn’t always work properly.

That’s why you’ll often come across a Parked page that has ads that have no real relationship with the domain name.

The keywords could be tweaked but that’s not what the Taster’s do as it’s too time consuming.

The Taster’s are strictly looking for domains that get natural type in traffic.

The object is to find domains that will at least earn more than the renewal fee.

Those domains are kept.

By the way, Taster’s do not pay regular retail or even discounted domain registration fees.

They pay the exact wholesale cost of $6.50 plus 20 cent ICANN fee since they operate their own Registrars.

Patrick

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Ctrl-Alt-Speech

A weekly news podcast from
Mike Masnick & Ben Whitelaw

Subscribe now to Ctrl-Alt-Speech »
Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...
Loading...