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Old 31st July 2006, 07:31 AM
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Domain "warehousing"

DCG Posted in his forum about 74k .eu domains "frozen" due to investigation of registrars etc ( )
A part of the thread mentions what is known as domain warehousing.

anyone here worried this is the impression some domainers/end users get/will get of the idn market? as i dont have stats but i think it is safe to say alot of premium idn's in all languages are owned by members of idnforums



74,000 .eu domain names 'out of service'

The Belgium-based regulator set up to oversee Europe’s top level domain has suspended 74,000 .eu domain names and sued 400 registrars.

EURid says it “firmly” reacted to a syndicate of registrars who systematically snapped up domain names to sell them on at a premium.

Such a process – known in the domain name business as ‘warehousing’ - threatens to undermine the value of .eu, the watchdog said.

“In this case we are convinced that the domain name holders of the 74 000 .eu names are acting as a front for a number of registrars,” said its legal manager, Herman Sobrie.

“The domain name holders and the registrars can be regarded as one and the same. Since registrars should only register domain names for existing customers and not ‘warehouse’ the names in order to resell them at a higher price, this is clearly in breach of the registrar contract.”

Three limited companies stand accused of the “abusive behaviour,” separate to a handful of other domain name holders who been stripped of .eu after failing to prove they were inside Europe.

When the system is abused “there is a risk that the perceived value of .eu will decrease, not only for the almost two million legitimate holders of .eu domain names but also for all fair registrars,” EURid said.

It warned it wants to act “firmly” with any .eu cheats – as far as the EC regulations allow – and will continue to monitor the whereabouts of domain name holders.

It will also take steps to verify that all accredited registrars are acting in the best interest of the end user in accordance with the terms and conditions of their contract with EURid.

The outcome of all the suspended domain names now awaits a court decision, with a view that the regualtor will later make the .eu names available for registration once again.

Jul 31, 2006
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Last edited by 555; 31st July 2006 at 07:37 AM..
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