US firms accused of buying up European cyberspace

[Judi Lynn]

Mon, Jul 31 06
US firms accused of buying up European cyberspace

The launch of Europe’s own internet domain name has sparked a transatlantic legal battle with US firms accused of moving in secretly to make an illegal profit. Around 74,000 “.eu” names have been frozen because of fears that a New York-based syndicate has broken the law with multiple applications designed to abuse the system.

Until April, Europeans had to choose between a national domain, such as “.fr” for France, or a general one like “.com”, which is often seen as American.
But the European Registry of Internet Domain Names (EURid) said that the syndicate used three British-based companies to exploit the “.eu” launch. It claims they stockpiled names with the aim of selling them later at inflated prices.

Domain names with special commercial value can be sold for large sums of money. Earlier this year the “sex.com” domain name was reportedly sold for more than $12m (£6.5m) in the US.

Under the rules laid down by the EU, registrars can apply for a domain name on behalf of an existing client. But the practice of warehousing – buying and holding names in the hope of selling them later – is illegal. Registrars can be based outside the EU but those operating the names must be based in Europe.
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http://www.unison.ie/irish_independent/stories.php3?ca=27&si=1663157&issue_id=14436
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[no_hypocrisy]

1. Reminds me of ticket brokers who buy up all the concert tickets while

individuals sleep on the sidewalk all night, waiting for the box office to open.