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“He must not be a very smart criminal”

Elliot Silver
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Porn Typosquatter Fined Again by FTC

One of the domain world’s most notorious criminals, John Zuccarini, was busted again for typosquatting.    Instead of forwarding traffic to porno like he did last time, Zuccarini was sending visitors to websites containing legitimate products.    Zuccarini’s typosquatting violated the law, and he was surprisingly caught again.    According to    MarkMonitor CMO, Frederick Felman, “He must not be a very smart criminal.”    An expert from the article:

A so-called typosquatter who served pornographic advertisements on domains such as Bobthebiulder.com and teltubbies.com has been fined again by the U.S. Federal Trade Commission.

John Zuccarini has agreed to give up US$164,000 in typosquatting revenue he is alleged to have raked in, the FTC said Tuesday in a statement. Five years ago, a federal court had barred Zuccarini from registering domains that are misspellings of legitimate brands, a practice called typosquatting, but he ignored the order, according to Carolyn Hann, a staff attorney with the FTC.

“He was engaging in practices that violated certain provisions of the order,” Hann said. “He had certain domain names that were transpositions or misspellings of popular domain names.” — Source: PC World

“Gonna Party Like its 1999”

Elliot Silver
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Pardon me for stealing a line from Prince’s “1999,” but I think it is relevant for the topic of whether Internet companies are currently suffering from Irrational Exuberance, creating an Internet bubble similar to the one in 1999 and bursting the following year.

“Dot-com fever stirs sense of déjà vu,” an written by Brad Stone and Matt Richtel featured today in the International Herald Tribune, discusses the idea that a great deal of Internet companies are overvalued, similar to the conditions that existed just before the .com bubble burst in 2000.    

Up until the bubble’s sudden burst, investors valued fledgling Internet companies at much higher revenue multiples than they could possible ever realize, effectively creating unsustainable valuations.    Investors were buying into unproven concepts, and unproven company founders were spending their newfound wealth unwisely. The article points out many similarities between pre-bubble 1999 to the conditions seen in today’s markets. The naysayers believe that today is different because many of the successful Internet companies are generating positive cashflow now, however, it seems like they are spending it recklessly on new startups without regard to potential revenue.

Like the original Kings of the Internet who wasted billions of dollars on unnecessary luxury items, the new Internet Titans should remember the failures of the past. A business is only as strong as its revenue and growth, and based on the experience of people in the online adult entertainment business, viewers don’t necessarily bring revenues. As Aaron Kessler of Piper Jaffray said in the article, Internet companies “are buying users instead of revenue and profitability.”

Exciting Announcement on Thursday…

Elliot Silver
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Stay tuned for an announcement on Thursday afternoon…   I am very excited about it and can’t wait to break it…

Domain for Sale: All Proceeds Benefit ICA

Elliot Silver
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Extracurriculars.com is for sale with all proceeds going to the ICA. A Buy it Now price has not been set, so please make offers in the comment section of this thread or send me an email. The highest offer received by 8pm EST today will get the name.

The term “extracurriculars” has 343,000 references in Google.

The domain name is registered at Moniker.

Saga of Nissan.com

Elliot Silver
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The saga of the domain name Nissan.com is fascinating. For years, Uzi Nissan and the automaker Nissan have fought several court battles for Nissan.com. In December of 2002, a court ruled that Uzi keeps the name but he cannot use the domain name for the following purposes:

“1. Posting Commercial content at nissan.com and nissan.net;
2. Posting advertising or permitting advertising to be posted by third parties at
nissan.com and nissan.net;
3. Posting disparaging remarks or negative commentary regarding Nissan Motor
Co., Ltd. or Nissan North America, Inc. at nissan.com and nissan.net;
4. Placing, on nissan.com or nissan.net, links to other websites containing
commercial content, including advertising; and
5. Placing, on nissan.com or nissan.net, links to other websites containing
disparaging remarks or negative commentary regarding Nissan Motor Co., Ltd.
or Nissan North America.” — Source: Nissan.com website

These restrictions essentially prevent Uzi from generating revenue from Nissan.com, causing him to solicit financial support to fend of Nissan in future legal battles. Basically for Uzi, owning Nissan.com is like owning a giant piece of land right next to an active diamond mine, but not being permitted to mine for diamonds. If he would want to sell this piece of real estate, he could potentially open himself up to a UDRP case.

The end goal of most domain investors is to sell their domain names to end users. I can’t think of a better end user for Nissan.com than the automaker. In my opinion, instead of Uzi’s public fight where he is forced to ask for donations to continue to stave off the far wealthier automaker, Uzi should have someone reach out to Nissan on his behalf and sell the name for a hefty sum. He might give up the rights to his domain name, but at this point, the name is worth FAR more to the automaker. This has become a battle of principles, and I believe Uzi might be smart to sell the domain name.

Instead of having to ask for donations, he will be able to give tzedekah and represent his family name and heritage in other ways.

AC/DC Acquires ACDC.com Legitimately

Elliot Silver
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AC/DC wins back website from porn business

According to this news article, AC/DC now owns the domain name ACDC.com. Although the article’s title led me to believe that this was a WIPO decision (“wins” rather than “buys”), it appears they acquired it the old-fashioned way – paying for it. From the article:

“For years the domain name acdc.com was held by a porn site with metal fans perhaps getting more than they bargained for every time they clicked.

But after years of wry tolerance the band’s management in New York has finished negotiations to reclaim the name and launch the brand at its rightful place online.” — Source: News.Com.Au

This really was a smart move by the band’s management team. Considering the amount of traffic the domain name probably receives, the price was clearly significant. The band could have easily tried to take the name in an underhanded way, via WIPO filing, but they opted to go about it the more legitimate way. Had they filed a WIPO, it would have cost the owners quite a bit of money to defend the name, and it might have irritated them enough not to consider selling it had a decision gone in their favor.

Kudos to AC/DC and their management for realizing the importance of ACDC.com, and for buying the domain name that is of highest value to them.

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