The ICANN regulations for domain name registrars dictate a requirement for deletion and auto-renewal policies. However, if you’ve had a domain expire lately you may have noticed that your registrar has taken over your domain name’s DNS and redirected YOUR domain to THEIR website. This is because of a clause in their Service Agreement that says you give them permission to do this.
This permission statement is usually buried so you won’t find the clause or the opt-out provisions that are provided. (For example, the clause is in Section 14, on page 10 of the Network Solutions agreement.)
Before we go any further, it should be noted that this practice is widely employed by registrars. In fact almost all registrars have gotten on this gravy train. So be aware that while the facts in this article apply to Network Solutions, this is simply a representative sample of the findings and are provided as evidence of the article’s accuracy and for no other reason.
In any event, this free use of a registrant’s property rights is without compensation and entirely to the benefit of your registrar and any third party they may use to sell your domain (SnapNames in the case of Network Solutions). Even when they sell your domain you get only 15 to 20% of the sale proceeds.
If it’s fair to assume the most likely time potential buyers will know your are serious about selling a domain is during the grace period (this is the 45 days after your registration renewal date), it’s easy to see why this is such a popular process with registrars.
But what if you wanted to post your own web page with a notice that may provide a sale where you would keep 100% of your sale price - not 15%? For instance, you may want to generate a sale by posting a message like this:
“THIS DOMAIN HAS JUST EXPIRED! BUY IT NOW OR IT WILL GO BACK INTO THE POOL WHERE YOU WILL HAVE TO COMPETE WITH SECONDARY MARKET COMPANYS THAT HAVE DOZENS OF REGISTRATION SERVERS AND SOFTWARE SUBMIT PROGRAMS!!”
Well, then obviously you would need to opt out of the part of the agreement that allows your registrar permission to control your domain during the grace period.
In the case of Network Solutions, the provision for this is found in SCHEDULE A TO NETWORK SOLUTIONS SERVICE AGREEMENT, ADDITIONAL TERMS APPLICABLE TO REGISTRANTS OF DOMAIN NAMES, Section 14. There, you find that any person registering a domain name with them may opt out of their “Direct Transfer” process with a simple notice to the designated email address backorderservice@networksolution.com.
However, a recent exercise of this exclusion option, found the registrar ill-prepared for such a request. Similarly, a representative from SnapNames disclosed they had no in-place process to exclude such opted-out domains from their partner-based offerings.
This finding suggests that the opt-out option is either so well hidden that it has never been exercised, or it has been regularly ignored. Either way, this would indicate a serious intrusion on the registrant’s intellectual property rights.
This also raised the issue of the ICANN’s requirement that accurate owner contact information be associated with each domain and be kept current. That is, while the registrar is not the owner of any such domain name and does not have any material interest in the underlying registration, they intentionally prevent the accurate information from being displayed.
In addition to the disruption this may cause to the stability of the Internet, it provides a state of confusion for the public as to who owns a registered-but-expiring domain name and interferes with any normal commerce that may transpire between those parties.
Whether or not this practice is allowed to continue only time will tell. But let’s be thankful that no other property rights are allowed to be handled in such an over-bearing manner. If so, you may find that if you were a day late on your mortgage payment you could return home from work to find another family living in your home and a real estate agent’s sign in your yard.
I can’t disagree more. If a registrar puts its own site on a non-expired domain, that would be wrong. But we’re talking about a domain that someone has discontinued paying for. If you stop paying your rent, you get evicted. People that believe grace periods are there for abuse are the same people that pay their credit card bills late. There’s no difference here.