Faces PR Nightmare Over Domain FrontRunning — Network Solutions

Domain registrar locks domains searched on its site.
[Update: see Editorial: Where Network Solutions Went Wrong] Network Solutions has implemented a program that locks users from registering domains with other registrars. As stated by the firm, it’s goal is to keep criminals from “frontrunning” domains searched at its site.
Here’s the deal, as noted at DomainState and a couple blogs: If you try to register a domain at Network Solutions, but decide not to register it, you won’t be able to register it anywhere else. Network Solutions registers the domain in its firm name with the words “This Domain is available at NetworkSolutions.com”. If you return to Network Solutions you can register it, but otherwise you’re out of luck.
This may be a form of domain frontrunning, in which a registrar screens name availability searches and buys domain for itself based on these. Ironically, Network Solutions states they are actually trying to protect their clients from domain frontrunning with this service.
I just got off the phone with Susan Wade, who heads PR for Network Solutions.
“This is a client protection measure to protect clients from frontrunners,” stated Wade. “Following four days, we release the domain.” As stated by Wade, Network Solutions instituted this program as a test over the past few weeks. I asked if Network Solutions is actually acting as a frontrunner by doing this and she stated there’s a distinction. First, they are not monetizing the domains. Second, they have no intention of keeping the domains. All domains are released following the four day period.
With regards to monetization, it appears that Network Solutions isn’t putting pay-per-click ads on the domains, but is creating an ad for their own firm at each domain it reserves:

I’m not sure there’s a distinction between pay-per-click ads and these billboards, other than the lack of trademark infringement on a URL. Still, if you search for a competitor’s name then it would be trademark infringement. For example, I just searched for DotsterDomainNames.com and RegisteratGoDaddy.com. You will now see an ad for Network Solutions at these domains. [Update: In part due to this article, Network Solutions has since changed its parked page to ‘under construction’, and soon they will not resolve at all.]
As stated by Wade, Network Solutions believes the frontrunning problem is occuring somewhere between when domains are searched at a registrar and when the registry VeriSign (NASDAQ: VRSN) is pinged. Someone is selling the data, she states, and Network Solutions has implemented this solution to stop it. Network Solutions will not release the domain if you request, and anyone who visits the domain or Network Solutions can register it. This seems to create a fresh opportunity for frontrunners: just monitor NetSol’s reserve domain DNS for fresh domains and register anything its clients are searching for. (Pssst. If you want to spy on NetSol client domain checks, see comment #8 below.)
Domainers are starting to have fun with Network Solutions’ fresh program. I tested this with a Dell trademark, since Dell is a member of CADNA (an organization fighting domain trademark infringement). I searched at NetSol for “DellisaTrademark.com”. Sure enough, the domain was reserved. And a whois search at Netsol reveals:
Registrant: Make this info private
This Domain is available at NetworkSolutions.com
13681 Sunrise Valley Drive, Suite 300
HERNDON, VA 20171
US
Domain Name: DELLISATRADEMARK.COM
This Domain is Available
600,000 domain names are registered daily! Don’t delay; there’s no guarantee that a domain name you see today will still be here tomorrow!
Register it Now
Administrative Contact :
Network Solutions, LLC
[email protected]
13681 Sunrise Valley Drive, Suite 300
HERNDON, VA 20171
US
Phone: 1-888-642-9675
Fax: 571-434-4620
Technical Contact :
Network Solutions, LLC
[email protected]
13681 Sunrise Valley Drive, Suite 300
HERNDON, VA 20171
US
Phone: 1-888-642-9675
Fax: 571-434-4620
Record expires on 08-Jan-2009
Record created on 08-Jan-2008
Database last updated on 08-Jan-2008
Domain servers in listed order: Manage DNS
ns1.reserveddomainname.com 205.178.190.55
ns2.reserveddomainname.com 205.178.189.55
Show underlying registry data for this record
If Network Solutions doesn’t stop this practice immediately, they are guaranteed of lawsuit in the near future. And ICANN will certainly get around to investigating it eventually…



