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Single-letter .com case back in court

Kevin Murphy, May 1, 2024, Domain Policy

The domainer trying to get his hands on all the remaining single-character .com and .net domain names has re-filed his lawsuit against ICANN.

Bryan Tallman of VerandaGlobal.com (dba First Place Internet) has filed an amended complaint in a California court, after the judge threw out his initial complaint in March. He alleges deceptive trade practices and breach of contract, among other things.

His claim is that he has sole rights to all unregistered single-character .com and .net domains, such as 1.com and a.net, because he’s registered the matching domains in Verisign’s internationalized domain name transliterations, such as the Hebrew קום. or the Korean/Hangul .닷컴.

He paid Verisign, via registrar CSC Global, $25,285 for 1.닷넷 back in 2017 and reckons he was also buying the exclusive rights to 1.com and 1.net. The same arguments applies to the dozens of other ASCII.IDN domains he registered, according to the complaint.

The argument rests almost entirely on a letter (pdf) from Verisign to ICANN in 2013, in which the registry sets out some of its plans for its IDN gTLDs.

The letter is imprecisely worded, to the point where if you squint a bit, drop some acid, and hit your head against the wall a few times, you might be persuaded that Verisign is saying it would be willing to sell the rights to 1.com for 25 grand.

The complaint says this letter is “ICANN policy”, and the rest of its arguments are pretty much based on that incorrect premise.

ICANN has already filed a demurrer, asking the court to throw out the complaint again, largely on the grounds that the letter is not “policy” and ICANN doesn’t have a contract with any of the plaintiffs that it could be accused of breaching anyway.

The latest filings can be found here.

Have your say on single-character .com domains

ICANN wants your opinion on its plan to allow Verisign to auction off o.com, with a potential impact on the future release of other single-character .com domain names.
The organization has published a proposed amendment to the .com registry contract and opened it for public comment.
The changes would enable Verisign to sell o.com, while keeping all other currently unallocated single-character names on its reserved list.
The company would not be able to benefit financially from the auction beyond its standard $7.85 reg fee — all funds would be held by an independent third-party entity and distributed to undisclosed non-profit causes.
The arrangement would also see the buyer pay a premium renewal fee of 5% of the initial outlay, doubling the purchase price over the course of 25 years.
They would not be able to resell the domain without selling the registrant company itself.
It’s a pretty convoluted system being proposed, given that there may well end up only being one bidder.
Overstock.com, the online retailer, has been pressuring ICANN and Verisign to release o.com for well over a decade, and the proposed auction seems to be a way to finally shut it up.
The company has a US trademark on O.com, so any other bidder for the name would probably be buying themselves a lawsuit.
The proposed auction system does not address trademark issues — there’s no sunrise period of trademark claims period.
One party already known to be upset about lack of rights protection is First Place Internet, a search engine company that has a US trademark on the number 1.
It told ICANN (pdf) back in January that the o.com deal would “set a dangerous precedent” for future single-character name releases.
The ICANN public comment period, which comes after ICANN received the all-clear from US competition regulators, closes June 20.
As a matter of disclosure, several years ago I briefly acted as a consultant to a third party in support of the Verisign and Overstock positions, but I have no current interest in the situation one way or the other.