Domain name front running is the practice whereby a domain name registrar uses insider information to register domains for the purpose of re-selling them or earning revenue via ads placed on the domain's landing page. By registering the domains, the registrar locks out other potential registrars from selling the domain to a customer. The registrar typically takes advantage of the five-day "domain tasting" trial period, where the domain can be locked without payment.
The term was coined by domain investor and retired stockbroker Daniel Stager. ICANN "likens this activity to front running in stock and commodities markets and calls this behavior domain name front running. ... There does not appear to be a strong set of standards and practices to conclude whether monitoring availability checks is an acceptable or unacceptable practice."
In January 2008, it was reported that Network Solutions uses data collected from their web-based WHOIS search to register every domain that users check for availability. Although the practice forces users to register the searched-for domains from Network Solutions, Network Solutions defends the practice, claiming that "This protection measure provides our customers the opportunity to register domains they have previously searched without the fear that the name will be already taken through Front Running." However, during the four-day period, the domain is still up for sale to the general public solely through Network Solutions and is not, in fact, reserved for a specific person at all.
In June 2008, Network Solutions proposed a small fee for domain tasting, in part to end the practice of domain name front running.
Video Domain name front running
See also
- Drop registrar
- Domain tasting
- Principal-agent problem (An economic theory applicable to front running, where domain registrars are agents, and domain name users are principals)
Maps Domain name front running
References
Source of the article : Wikipedia
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