p2pnet - rss feed: VeriSign, ICANN sued
p2pnet.net News:- A group of domain name registrars has filed a lawsuit against ICANN and VeriSign aimed at blocking implentation of VeriSign’s WLS (Wait List Service Implementation), a new service to allow people to back-order Net domain names.
Yesterday, in another lawsuit, VeriSign Inc said ICANN has no authority to prevent VeriSign from rolling out a search engine for users who mistype Internet addresses, or its WSL.
A CircleID story here says the complaint attacks ICANN and VeriSign are for 1) Unfair Trade Practices Act Violations; 2) Violation of California Business & Professions Code; 3) Unlawful Tying Arrangement; 4) Attempted Monopolization; 5) Violation of Racketeer Influenced and Corrupt Organizations Act; 6) Intentional Interference with Prospective Economic Advantage; 7) Breach of Contract; and 
Declaratory Relief.
Under the current system, popular domain names are often back-ordered and then auctioned to the highest bidder when they become available again, says an IDG News Service story here.
While customers may pay a higher fee for a back-ordered domain - on average they cost between $30 and $60 - they only pay for the domains when they actually obtain them, it quotes Bill Mushkin, ceo of Name.com Inc, one of the registrars behind the lawsuit, as saying.
“Under the WLS system, back-ordered domains would be awarded on a first-come, first-serve basis, but customers would pay an annual fee to back-order the domain, regardless of whether it becomes available for purchase during the year,” he states.
CircleID’s story has an excerpt from the complaint which reads:
“Defendant ICANN has, or has threatened to, enable Defendant Verisign to implement what they call the Wait Listing Service (the “WLS”). Defendants purport to offer consumers a “guaranteed” right to register an already registered domain name if the current registrant lets it expire. However, under most circumstances the guarantee is meaningless because the desirable domain names will never become available. Defendants have withheld any information about the likelihood (or lack thereof) that the WLS will provide any value to consumers. Such information, if provided, would reveal that most consumers purchasing WLS subscriptions would have a negligible chance of ever registering the domain names that they expect will become available.
“Moreover, Defendant ICANN has, or has threatened to, enable Defendant Verisign and third party domain name registrars to intimidate current registrants into buying unnecessary “insurance” to “protect” their domain names. Current registrants, who are dependent on defendants to preserve their rights and investments in their domain names, will have little choice but to purchase such insurance.
“For example, if the WLS were implemented, Verisign could sell consumers the “right” to be first in line to register knowing that the Microsoft Corporation will not permit their rights to the domain name to become available. Verisign can then sell the Microsoft Corporation insurance to protect its valuable domain name from ever becoming available to the WLS consumer. The WLS thereby allows Verisign and ICANN to generate fees by playing their unknowing customers against each other for merely maintaining the status quo.
“Simply put, the defendants are planning to implement (i) a scheme to dupe consumers into buying domain names the consumers will never be able to register, and (ii) an unlawful and fraudulent protection racket, all in violation of state and federal consumer protection, unfair competition, and racketeering laws. Several of the plaintiffs base their entire businesses on registering expired domain names. Consequently, those plaintiffs will literally go out of business if the defendants implement the WLS.
“This lawsuit seeks to enjoin the defendants’ proposed unfair and unlawful WLS activities, and in the event the defendants launch the WLS, the plaintiffs seek to recover the damages they will suffer as a result thereof.”
The eight plaintiffs are: ABR Products Inc., Name.com LLC, Lee Chambers Company LLC, Fiducia LLC, Spot Domain LLC, !$6.25 Domains Network Inc., Ausregistry Group Pty. Ltd., and !$!Bid It Win It Inc, says IDG.
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