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Network Solutions Draws Domain Flak
By CHRISTOPHER RHOADS
January 15, 2008; Page B12
Network Solutions LLC, one of the biggest sellers of Internet domain names, has come under criticism in the past week for what it called an attempt to stop a practice akin to insider trading in domain names. Yesterday, responding to charges it was making matters worse, it said it had made changes to its new policy.
The controversy has heightened attention on "front-running," a practice some believe is plaguing the domain-name business. Front-runners learn about someone's interest in a not-yet-created domain name and buy the name before the would-be customer can, allowing them to sell the name at an inflated price to the customer who originally showed interest.
Front-runners allegedly obtain their information by buying data showing searches for domain name availability from Internet service providers and registries, which manage domain-name addresses.
A week ago, Network Solutions, of Herndon, Va., changed its Web-site procedures so that when someone visits to check the availability of a given name, it would automatically put a hold on the name for a four-day period, according to the company. By doing so, Network Solutions effectively registers the name temporarily. Anyone wanting the name has to buy it through Network Solutions. If no one buys the domain name after four days, the name would be available again from any registrar on the open market.
The problem, according to critics, is the policy requires anyone wanting the name during those four days to deal with Network Solutions, which generally has prices several times higher than those of competitors. The customer isn't aware that conducting a search has the effect of temporarily registering the domain name with Network Solutions.
"This cure is worse than the problem," said Ram Mohan, the chief technology officer of Afilias Limited, a registry that manages the dot-info and dot-org domains, among others. "The very people you are trying to protect against are benefiting from this."
Part of the problem is that holding that name for the four-day period alerts others to the interest in that name, says Mr. Mohan. Holding such a name entails inserting the domain name temporarily in the so-called domain-name system, a database of all registered domain names -- and that information is publicly available. Others could buy that domain during the lock-up period or after it becomes available following the grace period.
Network Solutions says it has made changes in its new policy in response to the criticism. The company put additional information on its Web site notifying visitors that an availability search results in placing the name in reserve for four days. It also made sure that those names held in reserve wouldn't be made public.
"No front-runner can get this information," said Jonathon Nevett, vice president of policy at Network Solutions. He said holding a name in reserve prevents front-runners from immediately acting on the information that someone is looking for that name.
Write to Christopher Rhoads at [email protected]
http://online.wsj.com/article/SB120035979165090009.html?mod=googlenews_wsj
By CHRISTOPHER RHOADS
January 15, 2008; Page B12
Network Solutions LLC, one of the biggest sellers of Internet domain names, has come under criticism in the past week for what it called an attempt to stop a practice akin to insider trading in domain names. Yesterday, responding to charges it was making matters worse, it said it had made changes to its new policy.
The controversy has heightened attention on "front-running," a practice some believe is plaguing the domain-name business. Front-runners learn about someone's interest in a not-yet-created domain name and buy the name before the would-be customer can, allowing them to sell the name at an inflated price to the customer who originally showed interest.
Front-runners allegedly obtain their information by buying data showing searches for domain name availability from Internet service providers and registries, which manage domain-name addresses.
A week ago, Network Solutions, of Herndon, Va., changed its Web-site procedures so that when someone visits to check the availability of a given name, it would automatically put a hold on the name for a four-day period, according to the company. By doing so, Network Solutions effectively registers the name temporarily. Anyone wanting the name has to buy it through Network Solutions. If no one buys the domain name after four days, the name would be available again from any registrar on the open market.
The problem, according to critics, is the policy requires anyone wanting the name during those four days to deal with Network Solutions, which generally has prices several times higher than those of competitors. The customer isn't aware that conducting a search has the effect of temporarily registering the domain name with Network Solutions.
"This cure is worse than the problem," said Ram Mohan, the chief technology officer of Afilias Limited, a registry that manages the dot-info and dot-org domains, among others. "The very people you are trying to protect against are benefiting from this."
Part of the problem is that holding that name for the four-day period alerts others to the interest in that name, says Mr. Mohan. Holding such a name entails inserting the domain name temporarily in the so-called domain-name system, a database of all registered domain names -- and that information is publicly available. Others could buy that domain during the lock-up period or after it becomes available following the grace period.
Network Solutions says it has made changes in its new policy in response to the criticism. The company put additional information on its Web site notifying visitors that an availability search results in placing the name in reserve for four days. It also made sure that those names held in reserve wouldn't be made public.
"No front-runner can get this information," said Jonathon Nevett, vice president of policy at Network Solutions. He said holding a name in reserve prevents front-runners from immediately acting on the information that someone is looking for that name.
Write to Christopher Rhoads at [email protected]
http://online.wsj.com/article/SB120035979165090009.html?mod=googlenews_wsj
