Network Solutions taken to court over domain 'front-running'

Domain registrar Network Solutions was sued over the practice of "front-running" by a Los Angeles law firm representing domain name trader Chris McElory.

ICANN had already been investigating Network Solutions due to its actions, where it was putting holds on domain names after a user searched for them but did not immediately register.

The company was removing the name from the pool of available domains for about four days. During that period, the customer could come back to register the domain with Network Solutions for $35 per year, but it would be unavailable from other registrars.

Law firm Kabateck, Brown, Kellner LLP is accusing Network Solutions of improperly profiting through the process. In addition, it also names ICANN in the suit, which seeks class-action status. The firm specifically mentioned that four-day holding period as the basis for the suit.

"Each time someone asks Network Solutions about a domain name, the firm creates a monopoly for itself, forcing consumers to pay the price they demand," lead counsel Brian Kabateck said.

Kabatecks argument is that through the company's practices, for some domain names consumers would have to pay $25 or more than they would at competing registrars. His firm also says through ICANN's inaction, they are facilitating Network Solution's actions. As a registrar, Network Solutions is able to hold a domain for up to five days without paying ICANN, a loophole that many want closed.

Neither ICANN nor Network Solutions were commenting on the suit, which is seeking a refund of $25 per plaintiff. The law firm is not seeking damages from ICANN, it says.