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The Lowdown



Jan. 31, 2008 Post

Here's the The Lowdown from DNJournal.com! Updated daily to fill you in on the latest buzz going around the domain name industry!

Compiled by Ron Jackson (Editor/Publisher)

 

The Coalition Against Domain Name Abuse (CADNA) has issued a new report on domain tasting calling, as we, the Internet Commerce Association (ICA) and others have, for ICANN to take action to end the practice. The CADNA report comes out just days after the ICANN 

Domain tasters wolf down everything in 
sight but the gravy train will end soon.

board passed a resolution suggesting that a .20 per name fee be imposed on domains returned within the 5-day grace period (AGP). Most experts acknowledge that this would effectively end the practice. An even smaller fee of .05 per name accomplished the same goal with the .org registry. Those fees work because of the millions of domains scooped up by tasters, only a handful produce enough profit (via monetizable traffic) to make the names worth keeping. If tasters had to pay .20 on every domain they grabbed they would soon be out of business.

While we have the same objective as CADNA, an organization that represents trademark owners, we have a big problem with a proposal in their 

new report. They want ICANN to impose a 50% re-stocking fee on any domain returned within the grace period. That's not going to happen and I think CADNA knows that. The grace period is there so that people who make an honest mistake when registering a domain (such as mis-typing a name) can get their money back within five days. There is a need for the AGP to be there and to work in the way it was intended. Unfortunately domain tasters have abused that privilege mercilessly to taste names for traffic before throwing them back for a full refund.

We have long been dismayed by this rampant exploitation of a loophole, but CADNA's "throw out the baby with the bathwater" approach is not the way to solve the problem. ICANN's proposal is a proven, sensible method that will get the job done and we would like to see it enacted as soon as possible. 

By claiming that the ICANN recommendation will not work before it has even been implemented (when the .org record already shows that it will work) we can only assume that there is an ulterior motive to CADNA's proposal that we are confident ICANN will (rightfully) reject. When their proposal is rebuffed, I expect CADNA to then claim that ICANN is not being responsive to the problem and that changes to current trademark laws are needed - changes that would make it easier for take away domain owner's assets, whether or not they are guilty of trademark abuse. In a nutshell - to make reverse hijacking legal. I believe that is the ultimate end game here.

Many industry leaders have been warning about this as has the ICA. The kind of overkill CADNA repeatedly suggests to solve TM issues would harm many ethical business owners - not just the bad guys. It's why I think domain owners need to support the ICA so that the organization will have the resources necessary 

to fight for laws and ICANN policies that are fair to all sides, including trademark and domain owners alike. Let's implement the ICANN proposal and see if it solves the problem. If it does, it will also prove that CADNA's preferred approach - using a nuclear weapon where a rifle would suffice - is unnecessary and indeed harmful to honest business people

For those who think the assault on domain owners will go away if they just continue to ignore the problem, here is another piece of news for you. Nominet, who runs Great Britain's .co.uk registry has just taken the domain name myspace.co.uk away from its owner and given it to the owner and operator or myspace.com. Looks like a clear case of  trademark infringement on the surface doesn't it?  But the .co.uk owner happened to register the domain six years before MySpace.com even existed! Now, the UK uses different standards than the UDRP - standards that make it much easier for TM holders to take away domains they should not be able to take. There are people who want to make the same kinds of changes to the UDRP so that taking away your assets would be as easy as taking candy from a baby. Unless these threats are met head on, this form of domain name abuse will be unstoppable. If you haven't already, do yourself and your business a favor and join the ICA.
Posted ( Jan. 31, 2008)


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