NSI Class Action Lawsuit Over Domain-Squatting

Mr_Reaper writes: "Some people from eyeondomain.com started a class action lawsuit against NSI for not releasing expired domain names. If you've tried to grab an expired domain name and couldnt get it this maybe something to look at." See our previous story. The law firm is seeking affidavits from people who have attempted to register expired domain names which Network Solutions is holding on to -- you can email for more information if you want to submit such an affidavit.

Comments

There is only one problem...

[Thalia]

I agree with the concept that NSI should be forced to give up those domain names. And I do think that joining is a good idea. Although, if you join a class action, the likely recovery is in the pennies, while all the money is received by the named plaintiff and the attorneys, so keep that in mind. But, on reading the complaint, I found a fairly major problem. In order to have an actual case, the plaintiffs have to prove that an action or lack of action by the defendant caused them harm, and that the defendant had a duty to act to prevent this harm. I see proof of harm, and that defendant (NSI) caused the harm. But this complaint does not allege a duty on NSI's part to give up those domain names. The closest it comes is by stating: "NSI is restraining trade ... despite the fact that NSI disclaims rights in domain names." (Statement of Facts, Paragraph 44). This is not enough to establish that the NSI has a duty to release those names. I expect that NSI's answer, which is not available online as far as I can tell, focuses on the fact that they have no duty to be prompt, or to release domain names. I do think that a case could be made by the other registrars that the NSI's actions is an interference with their business. But it is much harder for an individual to take on the NSI, and somehow prove the obligation to release domain names. Thalia This is not legal advice, so don't even think it.

Property

[SlashGeek]

This all really goes back to the debate about whether domain names are property, and if one can "own" the rights to a domain name. In the case of a trademark, such as Microsoft, try that one at Register.com and see what it says. It will tell you that Microsoft is a Trademarked name and cannot be registered etc etc. Why should this be different for any other for-profit website? Even if it is only profit from banners, it is a business, and many online business have their domains as their (trademarked) business name. Is there a minimum profit or sales that the site or company has to maintain to have a name "trademarked" like MS does? It seems rather unfair that some companies have total control over their domains and other, smaller ones have to pay the piper for the rights to their own business.

Think, there are perhaps hundreds of millions of small business on the web. If these were storefront businesses, could the Sign Police come around once every 2 years and tell them that because they have a really cool sign and buisness name, that it will cost them $xxxxx.xx dollars to keep their mom and pop store open for another two years? I seriously doubt it. I hope the courts rule in favor of eyeondomain.com and everyone else involved in the Class Action Suite. The Intellectual Property that represents a domain, particularly one that is registered to a for-profit site, is the sole creation of the registrant. NSI had nothing to do with thinking of a name, creating a business model, designing the site, etc. They are there only to provide a service, and nothing more. The Internet Chamber of Commerce if you will.

Good luck to everyone at eyeondomain.com and company.

Unless I'm Mistaken...

[zpengo]

Isn't there some kind of loophole in the User Agreement that basically states that the users never actually *own* their own domain names, but that NSI officially owns them and is just letting people use them? This whole thing could have been an evil (but brilliant) trap from the beginning -- We're basically just creating a massive list for them of every domain name anyone could ever want; and then handing possession of those names over to them.

Register.com all the way, baby!