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Article Date: 17/04/2006
Article Title: Domain tasting - Watch out!
Watch out for "domain tasting"
PIR (the non-profit-making body responsible for managing the .org top-level domain) recently voiced its concerns about a new practice, known as "domain tasting". This involves the automated selection and registration of domain names which have been allowed to lapse or have been abandoned, analysing the amount of traffic directed to the domain name during the first four days and then cancelling those registrations which do not generate a substantial amount of "hits" and retaining those which appear to be of financial value. (It is standard practice for registrants to be given a five day grace period in which they can cancel domain name registrations without incurring any costs). In order to identify valuable domain names, companies which specialise in "domain tasting" employ sophisticated algorithms to carry out the automated transactions.
Whilst the problem of lapsed domain names being acquired by third parties is not new, the situation has been made significantly worse by companies who use the domain tasting technique in order to cycle millions of domain names. Registrants need to be particularly wary of third parties who may acquire lapsed domain names and use them in such a way so as to damage the business or reputation of the original domain name owner.
In order to avoid potential problems, businesses are advised to think carefully before deciding to abandon a domain name registration, in particular if the domain name incorporates a trade mark of the registrant's business. Of course, care is also needed to ensure that renewal dates for domain name registrations are diarised and closely monitored so as to ensure that renewal dates are not overlooked.
In circumstances where the lapsed domain name incorporates a trade mark of a business, it may be possible for the original registrant to use the relevant domain name dispute resolution procedure to reclaim the relevant registration but it is better to avoid having to follow this course if possible.
Birgit Schluckebier
birgitschluckebier@eversheds.com
Direct Dial: 0113 200 4026
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