domain kiting and snapping

jmiller · #1 (**permalink**) 08-30-2006, 03:22 PM

Domain squatters are getting craftier, registering disaster domains in advance of the potential, and then taking advantage of ICANN's five-day return policy. Some have made a regular practice of buying domain blocks, sitting on them, returning them, and then buying them again to repeat the cycle.

Smart and dirty, if you ask me. But some are getting peeved, especially when legit domain seekers can't get the domains they want, or worse, they're used for fradulent purposes.

Article here.

DomainSage · #2 (**permalink**) 08-31-2006, 04:40 AM

Hi jmiller,

I have to agree, I've noticed quite a few domains caught on the drop ... Parked for a few days .... Then released if they are not generating revenue.

It is not just that the domains are unavailable for a while but the registrars and ICANN are going to get their money somehow. I think this could lead to price increases, or at least no more price cuts / special offers in the long term.

All the best.

Richard

netndx · #3 (**permalink**) 08-31-2006, 11:44 AM

wild! thanks for sharing. I didn't even know there was a 5 day return policy!

I can see how these folks are gaming the system nad it being frustrating. However ICANN can change rules at anytime right? It isn't like they are regulated...they are the regulations.

Can you expand some on the reference to the hurricane domains being illegal? That is an interesting line of thought.

Sean

jmiller · #4 (**permalink**) 08-31-2006, 01:37 PM

it's illegal to use the domains for fraud...the DOJ and FBI looked into prosecuting after Katrina

http://www.techweb.com/wire/security/170701915

netndx · #5 (**permalink**) 09-01-2006, 09:47 AM

Quote:

Among the types of fraud the task force will target for investigation and prosecution, said Gonzales, are charity fraud, insurance fraud, government benefits fraud, and identity theft.

Thanks for the link. I agree. all sites are subject to these laws.

Speculating on domains for type-in or typo traffic for ppc would not be illegal though right?

In your article I was struck by the idea that people would buy a domain and see if it made money for ppc on type in traffic and then return it within 5 days
if it didn't.

jmiller · #6 (**permalink**) 09-01-2006, 09:55 AM

to the best of my knowledge, as long as it's not fraudulent or a violation of somebody's trademark -- say, Micrasoft.com, then it's legal...but I'm no lawyer and there may be other things to consider

jmcc · #7 (**permalink**) 09-01-2006, 03:56 PM

Quote:

Originally Posted by jmiller

to the best of my knowledge, as long as it's not fraudulent or a violation of somebody's trademark -- say, Micrasoft.com, then it's legal...but I'm no lawyer and there may be other things to consider

I think that the US's new Anti-Cybersquatting legislation (the Act underwhich Microsoft took legal action against a few people recently) could be used. The intent is important - if you register a domain like micrasoft.com to capitalise on microsoft.com typo traffic, then it could be a simple enough case to prove a bad faith registration. And MS tends to be be aggressive - just ask Mike Rowe. I think that a lot of people are waiting to see how the MS cybersquatting cases turn out. If they go well for MS, then other trademark and brand owners will start getting aggressive. The down side of having a trademark is that it has to be protected. If it is not protected, it loses the trademark status.