Many domain name registrars offer a service to give consumers
access to domain names that are about to expire. A fee is paid, but
no guarantee is given, and the end result is that consumers often
use several registrars to back-order the same name. This secondary
domain name market is very competitive, and prices are relatively
low.
However, the WLS was recently proposed by VeriSign, the company
that controls the database of all .com and .net domain name
registrations, and approved by ICANN in federal court in Los
Angeles. This, say those forming the coalition, would kill their
secondary domain name business model.
Under the ICANN-approved scheme, all registrars must apply for
expiring domain names through VeriSign. According to the Domain
Justice Coalition this will cost $24 for registration, with the
registrars' costs on top of that and a further payment needed to
actually purchase the domain name.
The lawsuit challenges ICANN's failure to comply with its own
internal decision-making process requirements when it approved
implementation of the WLS in the face of opposition from domain
name registrars, resellers and consumers.
The lawsuit also claims that the scheduled WLS launch date of
11th October is already harming members of the coalition by
creating doubt among secondary market consumers who are concerned
about the viability of the services they currently use.
"The WLS will have a devastating impact on consumer choice in
the secondary domain registration marketplace by creating one
centralised service for the acquisition of expired domains," said
Clint Page, Coalition spokesperson and president of Dotster, a
domain name registrar.
"In addition to the increased cost to consumers, the WLS will
recreate the type of monopoly that VeriSign once had in the domain
name market. It is our hope that the lawsuit filed today will
result in an injunction against ICANN and the prevention of
implementation of the WLS."
