What’s the biggest threat to the Internet, not to mention e-commerce? Hackers? Terrorist attacks on core domain servers? Micro$oft? No, no, no, none of those trivial dangers is the real…
What’s the biggest threat to the Internet, not to mention e-commerce? Hackers? Terrorist attacks on core domain servers? Micro$oft?
No, no, no, none of those trivial dangers is the real threat here. Instead, according to Network Solutions, the biggest threat is holding them responsible for being incompetent buffoons.
See, NSI, like most domain registrars, claims it has no responsibility to show any diligence before it transfers a domain to someone else. So in 1995, it blithely transferred the domain sex.com from its owner, Gary Kremen, to a Michael Cohen, solely on the basis of a fake fax which it made no effort to confirm. And, once the transfer took place, and the fraud involved was demonstrated, it refused to do anything about it.
It’s just one of a thousand stories of similar bogus, erroneous, or just plain stupid domain transfers.
Kremen won a $65MM judgment against Cohen, after a five year court battle, based on the lost revenue that sex.com could have brought him. Cohen moved all his assets, and himself, offshore.
So Kremen sued NSI for $100MM, based on its negligence. Which could make, NSI argues, everything all higgledy-piggledy.
But while you would think that this decision has far-reaching implications, both Kremen and NSI say that this is unlikely to happen since the NSI changed it contracts years ago (while it was still the sole seller of Internet domain names) to write itself even further out of legal liability for any domains it sells or looks after.
Ironically, however, NSI warns that such a decision could spark calls for legal changes in the domain name system. “Cases like this one will surely encourage attacks on the validity of any contractual liability limitation NSI or other registrars may have,” it warns in the submission.
This could happen in such terrible cases as those “affecting public interest” or “those regarding gross negligence or willful wrongs by common carriers”.
Imagine that.
Jerks.