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Former owner of sex.com becomes a fugitive

OUT-LAW News, 06/03/2001

In the latest twist in one of the most bizarre domain name cases, Stephen Cohen, who lost the lucrative name sex.com in a US court last November, has fled to Mexico and become the subject of an arrest warrant.

Gary Kremen of San Francisco registered the name in 1994 but lost it the following year to Cohen, an ex-convict, after Cohen sent a forged letter of transfer to Network Solutions, the domain registrar. Cohen then ran a highly profitable porn portal until November last year when a court awarded Kremen the return of the domain name having found that the forged signature on the letter to Network Solutions misspelled Kremen’s name.

In January this year, a German site, Domshop.de, put the domain name up for sale at $85 million. After much media publicity, it cancelled the sale and confessed that it never had Kremen’s permission to sell the name in the first place.

On Friday, Cohen failed to appear at court hearing which had been scheduled because he had failed to lodge a deposit of $25 million to cover potential damages payable to Kremen. He had also missed previous hearings.

Cohen had previously claimed through his lawyers that he did not have the money, but the judge ordered him to appear in person. Cohen’s lawyers said he could not appear because he was being detained by police in Tijuana, Mexico. The claim was dismissed by the San Jose judge as being unsubstantiated, and an arrest warrant has been issued.

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