NSI Front Running Creates Potential Legal Liability - DNHour

Avatar Posted by enrico1999 241 days ago (http://tcattorney.typepad.com)
Category: Domaining News & Articles | Tags: nsi front running cybersquatting netw

Litigation will find those registrars engaging in the Front Running practice. Every US state has a Consumer Protection Act which we believe would make this practice illegal. It amounts to outright fraud. The registrar deceives the consumer into using its domain availability search so they can see if the domain is open. But, the domain availability search feature is really a search tool for the registrar to see whether there is interest in the domain name. The registrar runs software which instantly registers the domain for itself and either offers it for sale or, at a minimum, makes it impossible for the consumer to register the domain through another register during the grace period. NSI admits to controlling the domain for 4 of the 5 day grace period but cites "consumer protection" as its excuse. It is unclear who NSI is protecting consumers from? Hackers who have installed code to monitor NSI availability searches?

Because penalty damages and attorney fees are available under state Consumer Protection laws, we believe it is just a matter of time before litigation exposes this fraudulent practice. It is certainly clear that ICANN has no intention of acting quickly to curb this domain registration abuse.

For a full legal analysis of the front running practice, click on the above link.
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