Network Solutions sued for $3M over domain transfer

[RJ]

Unauthorised domain name transfer sparks lawsuit
01/10/2003

Domain name registry Network Solutions, now owned by VeriSign, is being sued for $3 million by a software company that claims it gave away its domain name without permission. Optima Technology announced its claim on Monday.

The software company obtained the domain name optimatech.com in 1990. But in 2001, Optima suddenly noticed that its sales revenue had dipped. An investigation revealed that a former employee, Michael DeCorte, had obtained ownership of the domain name and was running his own web site to hijack company revenues.

Optima Senior Vice President Jack Geering explained to CNet News.com, “We don't know exactly when [DeCorte] gained control of our domain name and when he began diverting our sales traffic."

Geering continued, "When we confronted Network Solutions, they refused to give us the information. They said they had a letter from our company authorising the transfer and had also had follow-up phone calls with us."

The mistake was soon rectified, but left Optima out of pocket. As Barry Eisler, Optima’s president remarked:


"This is no different than parking your car with the Valet, giving your key to the valet attendant and coming out after a wonderful dinner, only to find your car was stolen as the valet gave your keys to a crook without checking to see if you authorized the theft".

He added:


"We are taking this action now, after notifying Network Solutions on several occasions that its actions caused our company a great deal of damage and lost revenue. The remedy sought is quite straightforward – we are asking for over $3 million in damages caused by their actions in giving our domain away."

The action follows the landmark decision by a federal appeals court in July that VeriSign could be liable for the unauthorised transfer of the lucrative domain name sex.com to an ex-convict. That case, possibly the first ruling where a domain name has been protected as a traditional property right, has encouraged Optima to seek a similar remedy.

VeriSign has made no comment.

http://www.out-law.com/php/page.php?page_id=unauthoriseddomain1065005327&area=news

 

[SlashRoot.Com]

About time!

 

[FruitFish]

I didn't even know there were domain registrations in 1990. They should sue for more!

 

[darksk8er]

also check all the bad reviews verisign is getting at alexa!!

 

[Toker]

Not trying to finger point but it seems like they did everything
right, had contact with the company who owned it even by phone
and the employee who stole it must have had the password..
Seems more like the blame should go to them for letting the employee
get the info and go after him for Theft by Deception!

 

[edits]

I wouldn't think the lawsuit would hold much merit. Simply taking the case given the situation is obvious. Something illegal went down but from the article clipping posted, Network Solutions seems to have actually went above and beyond the call of duty by speaking with someone at the actual company, given that the contact was most likely the then new owner is something that they probably messed up on but regardless. I've transferred many names to other people, with the transaction started by the other party and never recieved a phone call once, and I've dealt with dozens of high value names.

The case against Verisign should probably be thrown out but a similar case against the actual person who stole the domain should emerge and he will lose and lose big.

 

[Acroplex]

That's a 2 year old thread you've dug up.

 

[Dave_Z]

Not to mention the article -RJ- originally posted can't be found. Probably been
archived already.

Anyway, we'll never really know...unless someone knows either party from the
inside. :D

 

[Toker]

That's a 2 year old thread you've dug up.

Well then someone must know how it came out??

I do know one thing, Optima Technology spends as much time in Courts
that most judges do either suing or trying to get injuncions .
Never did see any they won tho..
However the FBI, HomeSecurity and a few other agencys dropped
by looking for a Terrorist who worked with them named
Mr. Zandian, a.k.a. ZANDIANJAZI, GOLAMREZA..

Actually I didn't notice any lawsuits Network Solutions has lost with anyone..

 

[Joey]

Yea, let the old say where it is