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Yes, you are dangerous, arbitrator tells “cybersquatter” OpenTLD

Kevin Murphy, August 25, 2015, 16:44:34 (UTC), Domain Registrars

Free domains provider OpenTLD has been dealt a crushing blow in its fight against the suspension of its Registrar Accreditation Agreement.

ICANN is now free to suspend OpenTLD’s RAA, due to the company’s “pattern of cybersquatting”, following a decision by an independent arbitrator.

The arbitrator ruled yesterday that OpenTLD’s suspension should go ahead, because “OpenTLD’s continued operation could potentially harm consumers and the public interest.”

The 90-day suspension was imposed by ICANN Compliance in June, after it became aware that OpenTLD had lost two UDRP cases filed by competing registrars.

WIPO panelists found in both cases that the company had infringed its competitors’ trademarks in order to entice resellers over to its platform.

The suspension was put on hold voluntarily by ICANN, pending the arbitrator’s ruling on OpenTLD’s request for emergency stay. That request was conclusively rejected yesterday.

The arbitrator wrote:

the Arbitrator has little doubt that the multiple abusive name registrations made by OpenTLD, each of which included the registered mark of a competing domain name registrar and OpenTLD’s subsequent use of those domains… formed part of a broad concerted effort by OpenTLD calculated to deliberately divert name registration business, otherwise destined for competing domain name registrars… away from those registrars to OpenTLD instead.

He wrote that OpenTLD needs to put a process in place to prevent similarly cybersquatty behavior in future, rather than just making a commitment to changing its ways.

It’s pretty harsh stuff.

OpenTLD said recently that a suspension would “devastate” and “decimate” its business, due to the intertwining of its massive ccTLD business and rather smaller gTLD platform, but the arbitrator thought a technology workaround would be rather simple to implement.

No RAA means no gTLD sales and no inbound transfers.

OpenTLD is part of Freenom, which runs .tk and other free-to-register ccTLDs.

The company’s only ray of sunlight in the ruling is that the arbitrator said the costs of the proceeding should be split equally, not all falling on OpenTLD’s shoulders.

ICANN has not yet re-instituted the suspension, but it could come soon.

The full ruling can be read here.

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