Many domain name registrars offer a service where consumers pay
a fee to 'reserve' a domain name that is already registered. If and
when that registration is not renewed, the registrar will attempt
to get it on the consumer's behalf.
No guarantee is given, and the end result is that consumers
often pay several registrars to back-order the same name. This
secondary domain name market is very competitive, and prices are
relatively low.
The Wait Listing Service, or WLS, was proposed earlier this year
by VeriSign, the company that controls the database of all .com and
.net domain name registrations, and approved by ICANN. But the WLS
has been criticised by a coalition of domain name registrars and
resellers, who argue that the new scheme 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.
In July the coalition sought a temporary restraining order
against ICANN, challenging its 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.
On Thursday the Court ruled in favour of ICANN, stating: "the
implementation of WLS has the potential to benefit registries,
registrars who do not currently offer wait-listing services, and,
most importantly, the public".
Judge Walters added that the coalition had "failed to
demonstrate either the possibility of irreparable injury or that
the balance of hardships tips sharply in their favour."
The case is expected to go to trial early next year.
