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Verizon subpoenas DirectNIC whistleblower

Kevin Murphy, January 21, 2011, Domain Registrars

Verizon has subpoenaed a former DirectNIC employee as part of its ongoing cybersquatting lawsuit against the domain name registrar.

Mark Deshong filed a “whistleblower” suit against his former employer – Keypath LLC, which he said shares ownership with DirectNIC – last August, but it was quickly settled out of court.

He alleged Keypath was engaged in a fraudulent domain arbitrage scheme using Yahoo Search Marketing and credit cards applied for in the name of bogus companies.

Keypath’s lawyers (who denied the links to DirectNIC) in turn accused Deshong of trying to extort the company for a larger severance package. The case was settled in October.

Now, in a Florida court filing (pdf), Verizon said it has subpoenaed Deshong for information related to its own case, which is currently tied up in pretrial discovery arguments.

He was scheduled to provide a deposition on Tuesday.

Verizon claims DirectNIC engaged in cybersquatting via shell companies such as Kenyatech/Kentech and Belize Domain WHOIS Service.

While there’s circumstantial evidence connecting the companies, CEO Sigmund Solares signed a sworn affidavit in a previous case denying Kenyatech and DirectNIC were affiliated.

Verizon’s interest in Deshong appears to be limited to information about DirectNIC’s ownership structure and its affiliations, rather than his allegations about domain arbitrage practices.

Verizon seeks another registrar scalp

Kevin Murphy, March 21, 2010, Domain Registrars

After killing off small Indian registrar Lead Networks last week, Verizon wasted no time in gunning for a larger target, DirectNIC.

The carrier sued DirectNIC on Friday, claiming the company has been involved in the systematic typosquatting of hundreds of thousands of domains, including at least 288 belonging to Verizon.

There appears to be at least two things going on here.

First, Verizon is claiming that the common registrar practice of parking expired, pre-delete domains, somehow falls foul of US anti-cybersquatting laws if the parked domains are typosquats.

DomainNameWire addresses the possibly discomforting precedents this could set over here.

Second, the Verizon complaint resurrects the theory that DirectNIC’s owners, including CEO Sigmund Solares, are or were themselves typosquatters, using shell (continue reading)