Angry investor sues for 30% of new .spa gTLD
Barely had the new gTLD .spa made it into the DNS root than it got sued by a company that claims it was stiffed out of a 30% stake in the domain.
Malaysia-based Asia Spa and Wellness Promotion Council, the newly minted registry, is being sued in Hong Kong by DotPH, the company that runs the Philippines ccTLD, .ph, over an eight-year-old investment deal DotPH says is being ignored.
It’s also named as defendants .asia registry DotAsia, DotAsia subsidiary Namesphere, and several DotAsia directors.
DotPH claims in its lawsuit that its CEO, Joel Disini, got together with DotAsia CEO Edmon Chung in early 2012 to come up with a deal whereby ownership of .spa, should its application be successful, would be split three ways.
ASWPC would hold half the shares, Namesphere 20%, and DotPH the remaining 30%, according to the complaint. DotPH claims it paid $60,000 for its stake in April 2012.
Now it claims that these shares were never formally issued, and it wants the Hong Kong court to force Namesphere to hand them over and force the original three-way ownership structure originally agreed.
But it turns out that DotAsia seems to have abandoned .spa anyway. Its board of directors a year ago voted to give ASWPC “sole rights” to the gTLD, enabling it to concentrate on .asia.
Disini, who was a member of the board at the time, claims he was only emailed about the vote a day before the meeting and did not see the email until it was too late.
He told DI: “the board of dotAsia moved to give away DotPH’s 30% equity in SPA”. He’s not happy about it. He reckons .spa could easily be a $2 million-a-year business.
The suit was filed October 19. You can read it here (pdf).
I’ve yet to receive a response to my request for comment from Chung, and will of course provide an update should he get back to me.
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He should save his money. Invest in good .com domains or strong country codes. 🙂