Front Running
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Front Running as it relates to the domain industry is the practice of using insider information to register a domain name that someone else wants to register in order to charge a higher price for the domain name or to get the registrant to sign the name with a particular registrar.[1][2]
Public Perception
The public perception of domain name front running is that it is an unfair practice that harms the registrant. It is often seen as a conflict of interest for registrars[1] and compared to insider trading. [2] It is worth noting that there is debate over the existence of domain name front running.[1][2][3]
Outcome
The outcome of this practice is a lack of trust between registrants and registrars and possibly extortion if the accusations of front running are verified.[2]
Historical Use
- In theory, domain name front running occurs when people interested in registering domain names use WHOIS or a popular registrar's website to see if their desired domain name is taken. [4] The registrar or another third party then uses this search data to register the name, making it unavailable except under the registrar or third party's terms and conditions.[1][4]
- In 2008, Network Solutions was accused of front running because a protective service it used put domain names searched on their site on hold for 4 days after the initial search. [5] The result was that if a person wanted to register the searched for domain name, they would have to register with Network Solutions or wait for the name to become available again.[6] Network Solutions settled in a 1 million dollar class action lawsuit over the service.[7]
ICANN Policy
- A study by ICANN's Security and Stability Action Committee (SSAC) found no proof of domain front running after completing more than 600 tests [3] and dismissed 120 complaints of possible front running.[2]
- In addition, a clause in Specification 9 of the 2013 RA states that front running activities are prohibited.[8]
Legislation
- Domain name front running is not specifically addressed by U.S. law at this time.
Additional Resources
Related Articles
- Another practice that may give registrars an advantage over registrants is Warehousing.
References
- ↑ 1.0 1.1 1.2 1.3 How To Keep Your Domain Name Searches Safe From Poachers by Michael Cyger (April 3, 2011), Domain Sherpa.
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 Security and Stability Advisory Committee (SSAC): Domain Name Front Running (PDF), Internet Corporation for Assigned Names and Numbers (ICANN)
- ↑ 3.0 3.1 Results of Domain Name Front Running Study (August 4, 2009), Internet Corporation for Assigned Names and Numbers (ICANN)
- ↑ 4.0 4.1 Network Solutions Scam by Louis J. Bruno (March 7, 2008), PC News Digest
- ↑ Editorial: Where Network Solutions Went Wrong by Andrew Allemann (January 9, 2008), Domain Name Wire
- ↑ Lawsuit targets Network Solutions, ICANN over the 'front running' of domain names by Paul McNamara (February 25, 2008), Network World
- ↑ Network Solutions Front-Running Leads to $1 Million Class Action Settlement by Adam Strong (April 29, 2009), Domain Name News
- ↑ ICANN Registry Agreement