Out-Law News 1 min. read

Network Solutions is sued for hoarding domain names


A class action law suit has been filed in Alabama against Network Solutions after the company refused to release web site domain names whose ownership licenses had legally expired.

Stan Smith, an Alabama businessman, attempted to register several domain names with Network Solutions in June. Although legal ownership on each of those names had expired, Network Solutions refused to delete them from its central WHOIS registry database, denying Smith the opportunity to assume ownership of those names, which he argues was his legal right.

According to the complaint, Network Solutions implemented a unilateral policy of refusing to delete expired domain names from the WHOIS database. Reports estimate that the number of expired names withheld by Network Solutions, Inc. is between one and three million.

“This case is about restraint of trade,” says Scott Powell, the lawyer representing Mr Smith. “By refusing to release names that should have been returned to the public domain, Network Solutions has unlawfully attempted to maintain the monopoly power they no longer have.”

Network Solutions is suspected of keeping the names with a view to auctioning them at a later date. Earlier this year it notified domain name owners who had failed to pay renewal or registration fees that if they did not settle their accounts immediately it would put their domain names up for auction. The reaction to this announcement, with critics arguing that any expired names should become publicly available, persuaded Network Solutions to shelve its plans.

WHOIS is the standard label for a name-lookup, or registry database, of more than 10 million names - including all .com, .net and .org names - considered to be a generic utility for the internet's administrative community. The database was developed by Network Solutions, who until October 1998 held a government-sanctioned monopoly for the registration of non-military internet domain names. Law now requires that the WHOIS database remain accessible to all name lookup services.

Powell says his firm has sought class action status for the case.

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