ICANN Takes a Step Toward Ending Domain Tasting

An anonymous reader writes "For years, domain squatters have exploited an ICANN loophole: whenever a domain name is registered, ICANN collects a 20-cent fee from the registrar. To allow for non-paying customers, the registrar can return it five days later for a full refund. The loophole has let unscrupulous registrars constantly create and refund domain-squatting websites, selling 'what you need when you need it' advertising. The problem has grown so bad that every month the world's top three domain squatters, all located in Miami with the same address and represented by the same lawyer, recycle 11 million domain names. After years of complaints, ICANN has finally begun moving on the problem. On April 17 ICANN's Generic Names Supporting Organization voted to make the ICANN 20-cent fee non-refundable. If the ICANN board ratifies this position in June, those top three squatters will be getting a monthly bill for $2.2M. News of the ICANN changes has been applauded by legitimate Internet businesses, tired of having to choose nonsense names because all the good ones have been squatted. ICANN has published an analysis of the economics of ending domain squatting."

Comments

Re:Squatting = 5 Days???

[JustCallMeRich]

Imagine if you will, a place where 5 days lasts forever. A week never goes by. A lawn never gets mowed.

Unpossible, you say? Not if you are really a sham company who buys a domain name and returns it 4.9 days later, only to be immediately picked back up again by another sham company which happens to be located in the same place as the first, and again only holds the domain name for another 4.9 days to again return it for a refund and have it immediately picked back up again by a third sham company - a mirror image of the past two, which again holds the domain for 4.9 days, only again to return it for a full refund, at which time the first sham company picks it up again, starting the cycle all over again, ad infinitum - and at $0.00 net cost to the companies.

It's not that squatting = 5 days, but that this process continues for years. Making that $0.20 fee non-refundable means that now every 4.9 days in the above merry-go-round, there is a 20 cent charge for that domain name. What used to be free to do will now cost $1.50 a month - PER DOMAIN NAME if they keep doing this, which, obviously they will not be able to afford.

Chances are they will now have to cough up some hard cash to actually register the million or so domain names they have, or let them expire and be free amongst the intertubes yet again for legitamite buyers to catch.