ICANN Takes a Step Toward Ending Domain Tasting

[pxco]

"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."

Slashdot | ICANN Takes a Step Toward Ending Domain Tasting

 

[Jon]

This is blasphemy. ICANN makes enough money on the damn 20 cent fee from the registered TLD's, plus their annual fee from registrars (what is it, $8k/yr now?), and now they want to stick their hand into domains that may be refunded? Exactly how does this benefit anyone except for ICANN? Do you think this will stop domain tasting? I know it won't. The major domain tasters are so advanced, this will just make their operations have a slight profit margin decrease, and it won't do any good for anyone else, because they will continue to taste domains, but probably on a much more accurate scale, so it's actually NOT beneficial. Sure, the good that may come of this is that more TM's and shady squatting may not be a risk they are willing to take, but let's be realistic everyone!

 

[Dullspace]

Do you think this will stop domain tasting? I know it won't. The major domain tasters are so advanced, this will just make their operations have a slight profit margin decrease, and it won't do any good for anyone else, because they will continue to taste domains, but probably on a much more accurate scale, so it's actually NOT beneficial.

Using actual statistics, a 2 cent return fee would kill all margins for tasters. These guys are tasting millions of domains per month, and returning all but the < 1% of them that will earn 50 cents per year. By definition, mass tasting isn't "accurate" at all, and if it was then they wouldn't be returning over 99% of their domains. Moreover, this curbs the act of domain kiting where one deletes and re-registers a domain every 4 days and essentially owns it for free.

It's fine if you think domain tasting is ok (which is crazy), but to think that a 20 cent return fee won't have an impact just isn't true.

 

[transparentv]

I would have to agree that ICANN is doing this more for the added revenue (or increased profits per domain not having their systems process 11Mill. returns). They even mention in the report that domain tasting started in 2006, if they cared about the ethics of it they would have solved this problem two years ago. They are looking for more revenue, just like with increasing their fees. One company should not be allowed to have a monoply like this that affects so many companies and businesses.

 

[Unarmed Gunman]

ICAAN will reap the rewards, and so will the common people that will actually be able to buy some domains now. Just wait to see how many domains become available the day this happens. Leave the domains to the people that will actually develop them.

Jon - your assertions are baseless, and mathematically incorrect.