|
|
|
Here's the The Lowdown
from DN Journal,
updated daily
to
fill you in on the latest buzz going around the domain name industry.
The Lowdown is
compiled by DN Journal Editor & Publisher Ron
Jackson. |
|
|
|
|
|
Messy
Divorce: Moniker Founder Monte Cahn's Multi Million
Dollar Lawsuit Against Oversee.net Could Get Ugly + One
Domain Conference Cancelled, Another Scheduled
I
had heard this was coming
and
Wednesday (May 4) the rumor became a reality
when Moniker.com
founder Monte Cahn filed a multi-million
dollar lawsuit
(PDF file) against his former
employer, Oversee.net,
as well as that company's co-founder Lawrence
Ng and its President and CEO Jeff
Kupietzkty who were named as individuals.
That sets up a domain
|
industry
version of Clash of the Titans (Cahn,
Ng
and Kupietzky
have all been profiled in DN Journal Cover
Stories, with the Cahn article dating all the
way back to our first year of publication in
2003 when he was already one of the most widely
known figures in the industry).
Cahn
had joined Oversee as Moniker's President when
they purchased Moniker for $35 million in
a deal announced in January 2008. Cahn parted
ways with Oversee at the end of 2010 when his
contract expired and now alleges that they
violated the contract terms of a Management
Incentive Plan under which he could have
earned as much as $13 million (but wound
up receiving nothing). Cahn also alleges that
Oversee did not pay him a commission he was due
for the sale of Restaurants.com in
February 2011, even though he claims to have
written evidence of the commission agreement.
|
Moniker
Founder Monte Cahn |
|
Oversee
VP Mason Cole |
In
Oversee's response to Cahn's suit, Mason
Cole, the company's Vice President
of Corporate Communications wrote (in a
passage I first saw Wednesday night on
the Domainers Magazine website):
"Predictably, the path Monte Cahn has chosen is needlessly confrontational and provocative. Regrettably, his perceived dispute with Oversee is a result of his own falling short of expectations. This action will do nothing to further his cause and will only result in the needless expense of time and attorneys fees. It is unfortunate that Monte’s actions will impact employees and clients of Moniker, the company he helped
found. Monte’s unfounded claims are well overstated and singularly without merit. We will vigorously defend this action and we look forward to resolving this in court at the earliest possible opportunity." |
The
unusually pointed nature of Cole's
response came as a bit of a surprise to
me. I have known Mason for a number of
years now and have always found him to
be a very professional and even tempered
person. I have never seen this tone in
his corporate communications which
indicates to me that, while there is
naturally some animosity in just about
any lawsuit, there seems to be a higher
than usual level of friction between the
parties in this one. I asked Cahn about
Cole's response but he had no comment,
noting that we will all have to wait and
see how it all pans out.
Unfortunately,
lawsuits like this tend to drag on for
at least a couple of years and
frustration with the slowly unfolding
process and unresolved dispute will
likely produce more divisions
within the domain community. Cahn is a
well liked and widely respected industry
pioneer (which is why Oversee wanted him
to be part of the package when they
acquired Moniker), so you can expect his
supporters to be very vocal in
his defense, with Oversee backers on the
other side of a debate that could
quickly get ugly on the blogs and
in forums.
We
already know what to expect in
that respect because Oversee,
over the past couple of years,
has already been the target of a
number of detractors due to
widely publicized incidents
involving shill bidding by a SnapNames
executive (whom Oversee is now
suing) and a privacy breach by a
Moniker employee (who is no
longer with the company). The
lawsuit gives Oversee's
opponents more ammunition to
fire against them. |
|
Still,
while people will have their say on both
sides of the issue, in the end it will
be up to the court to decide who
is in the wrong in this particular
instance - that is if the suit
goes that far - and that is a big
if. While both sides feel they
are in the right and will ultimately
prevail, the seemingly endless cost
and aggravation of being involved in
a lawsuit frequently wear down both sides,
leading to a settlement before
the court rules (as happened last year
when the long, drawn out case between DomainTools
founder Jay Westerdal and the
company that bought DomainTools, Thought
Convergence, was settled). If I had
to make a prediction that is what I
would guess will happen here.
|
A
couple of other notes today
regarding domain conferences.
The DomainConvergence conference
that was scheduled to run next
week (May 12-13) in Montreal
has been cancelled
by organizer Frank Michlick
due to a lack of
registrations. Michlick said,
"All paid registration fees will be refunded and sponsors will be compensated" |
Meanwhile,
Daniel Dryzek, who stages
Europe's MeetDomainers
conference tells us the date and
location for the 2011 event have
now been set. This 5th edition
of the event will be held in Warsaw,
Poland on Friday, October
14, 2011 at the Polonia
Palace Hotel. The date falls
two days before the 2011 T.R.A.F.F.I.C.
connference will be
held in the U.S. on Ft.
Lauderdale Beach. |
|
|
(Posted May
5, 2011)
|
|
|
For
all current Lowdown posts - Go
Here
|
We need your help to keep giving
domainers The
Lowdown, so please email [email protected]
with any interesting information you might have. If possible,
include the source of your information so we can check it out (for
example a URL if you read it in a forum or on a site
elsewhere).
|
|
|
|
Home
Domain Sales
YTD Sales Charts
Latest
News The Lowdown
Articles
Legal Matters Dear Domey
Letters
to Editor Resources
Classified Ads
Archive
About Us |
|
|
|