At present, 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.
But 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.
Last year VeriSign, the company that controls the database of
all .com and .net domain name registrations, proposed a unified
system known as the Wait Listing Service (WLS). This would require
that all registrars apply for expiring domain names through
VeriSign, on a first come, first served basis. There would still be
no guarantee that the domain would be available for
re-registration.
The scheme had to be approved by ICANN - the Internet
Corporation for Assigned Names and Numbers – before it could go
ahead, and VeriSign has been frustrated by the delays involved in
gaining that approval. Only last month VeriSign filed suit against
ICANN, alleging that the organisation has failed to follow a clear,
consistent and uniform process.
The suit complains that ICANN has improperly attempted to become
the de facto regulator of the domain name system and in doing so
stifled the introduction of new services that benefit internet
users and promote the growth of the internet.
But the WLS scheme has been heavily criticised by domain name
registrars and resellers, who argue that the proposal would
increase costs and kill their secondary domain name business
model.
In July last year a group of registrars and resellers, calling
themselves the Domain Justice Coalition, sought a temporary
restraining order against ICANN, challenging its failure to comply
with its own internal decision-making process requirements when
considering implementation of the WLS in the face of opposition
from domain name registrars, resellers and consumers.
The Court refused, and the case is due to go to trial later this
year.
Another group of eight registrars filed suit against both
VeriSign and ICANN last month, arguing that if the WLS were
implemented it would eliminate competition by putting VeriSign in
command of redistributing expired domain names and change the
existing process from a fee for results – where a customer pays
only if the domain is secured – to annual fees that are no more
"than a bet against the house."
The scheme has still to be approved by the US Department of
Commerce.
