Registrars accused of hoarding 74,000 domain names
By David Meyer

http://news.com.com/Registrars+accused+of+hoarding+74%2C000+domain+names/2100-1030_3-6098101.html

EURid, the organization that administers the .eu top-level domain, has 
suspended 74,000 domain names after launching a lawsuit against 400 
American registrars for "breach of contract."

The domains in question were all registered for three U.K.-based 
companies: Ovidio, Fausto and Gabino. Among them, the three companies 
registered 74,000 names, EURid said.

According to EURid, the three companies are a front for a "syndicate" of 
400 U.S.-based registrars, which stand accused of "warehousing" the 
domain names--registering them speculatively for resale, rather than 
following a client's request.

EURid said Monday that abusing the registration system could lead to a 
"risk that the perceived value of .eu will decrease, not only for the 
almost 2 million legitimate holders of .eu domain names but also for all 
fair registrars."

"As a registrar, you should have an end user ask you to register a 
domain name for you before you can register it," EURid communications 
manager Patrik Linden told ZDNet UK on Monday.

"Since they cannot do that in their own name, we say they have 
registered the domains using these three companies as a front...Also, as 
they are American, they could not have done this, but that is a separate 
issue," he added.

Linden noted that legitimate purchasers of .eu domains have not had 
their domains suspended. "If you are the holder, you're not affected," 
he said.

A search on the Web site of Companies House--the U.K. government's 
registry of U.K. companies--lists Ovidio, the only company of the three 
to appear there, as a business that does "market research, opinion polling."

However, EURid claims the three companies "can be regarded as one and 
the same," and a look through their static-page Web sites displays 
identical text, with only the names of the companies differing.

The Web sites did not list phone numbers or e-mail addresses for contact.

The companies' sites were all registered through a U.S. company called 
Domains By Proxy.

Domains with a .eu extension became generally available earlier this 
year, following a "sunrise period" when European companies and 
organizations got first option on their names and trademarks.

The launch was nonetheless plagued with complaints--including one from 
registration company GoDaddy founder Bob Parsons--that registrars were 
stockpiling domains by the thousands.


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