Garrett M. Vonk (![[info]](http://l-stat.livejournal.com/img/userinfo.gif){kind=small} gvonkuga) wrote,@ 2003-02-05 08:00:00 |
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Sex.com case heralds end of Internet – NSI
Sex.com case heralds end of Internet – NSI
The Register
Summary:
The legal environment of the digital age is vastly different from that of a few decades ago. The speed with which information moves and the relatively huge breadth of such information have both simplified and made more complex many different issues. One such issue at hand is the question of whether property rights extend to concepts that are purely digital. This question is the central issue in a case currently before the California Supreme Court.
Back in 1995, when the Internet was a virtual toddler, domain names began to be sold at a rapid pace. Network Solutions was the sole awarder of domain names, an ability that gave the company great power and control over the structure of the web. Simple, one word domain names began to be perceived as worth millions of dollars by businesses with an internet presence-- and rightly so. A simple domain such as business.com or sex.com makes a web site not just attractive, but memorable.
Sex.com was originally the property of Gary Kremen, who works for Online Classifieds (OCI). The domain was valued at millions of dollars at the time. In 1995, Michael Cohen sent a fax to NSI authorizing the transfer of the domain name to himself under the pretext that Gary Kremen had been fired from the company. This was a completely untrue statement which was unfortunately accepted part and parcel by NSI, who transferred the domain without blinking an eye.
This was only the beginning of the problem for Kremen, however. When NSI refused to reward him the domain, he took them to court, in what became a five-year legal battle over it. Kremen won, and Cohen promptly fled the country, leaving a $65 million settlement in his wake.
The actual filing before the Supreme Court is a much simpler legal question than the original one. The case deals with the question of whether digital property is still within the scope of standard property law and concepts such as the tort of conversion. NSI claims that the services provided for domain names (DNS) are intangible and are thus not subject to the same laws. Kremen, however, cites law pertaining to other intangible items such as bonds, recorded performances, and e-tickets.
In the end, the case is about more than just a man who claims to have lost $100 million dollars because of this issue. The judges who make a decision will speak very strongly about the future of the Internet and the legal and regulatory environment around it.
Sex.com case heralds end of Internet – NSI
The Register
Summary:
The legal environment of the digital age is vastly different from that of a few decades ago. The speed with which information moves and the relatively huge breadth of such information have both simplified and made more complex many different issues. One such issue at hand is the question of whether property rights extend to concepts that are purely digital. This question is the central issue in a case currently before the California Supreme Court.
Back in 1995, when the Internet was a virtual toddler, domain names began to be sold at a rapid pace. Network Solutions was the sole awarder of domain names, an ability that gave the company great power and control over the structure of the web. Simple, one word domain names began to be perceived as worth millions of dollars by businesses with an internet presence-- and rightly so. A simple domain such as business.com or sex.com makes a web site not just attractive, but memorable.
Sex.com was originally the property of Gary Kremen, who works for Online Classifieds (OCI). The domain was valued at millions of dollars at the time. In 1995, Michael Cohen sent a fax to NSI authorizing the transfer of the domain name to himself under the pretext that Gary Kremen had been fired from the company. This was a completely untrue statement which was unfortunately accepted part and parcel by NSI, who transferred the domain without blinking an eye.
This was only the beginning of the problem for Kremen, however. When NSI refused to reward him the domain, he took them to court, in what became a five-year legal battle over it. Kremen won, and Cohen promptly fled the country, leaving a $65 million settlement in his wake.
The actual filing before the Supreme Court is a much simpler legal question than the original one. The case deals with the question of whether digital property is still within the scope of standard property law and concepts such as the tort of conversion. NSI claims that the services provided for domain names (DNS) are intangible and are thus not subject to the same laws. Kremen, however, cites law pertaining to other intangible items such as bonds, recorded performances, and e-tickets.
In the end, the case is about more than just a man who claims to have lost $100 million dollars because of this issue. The judges who make a decision will speak very strongly about the future of the Internet and the legal and regulatory environment around it.
