Appeals court rules Sex.com owner can sue VeriSign

Gary Kremen, the original owner of the Sex.com Web site, has won the right to sue VeriSign's Network Solutions division because it transferred ownership of the site to a con man without verifying the transfer with Kremen.

The ruling, which was issued July 25, by the 9th U.S. Circuit Court of Appeals in San Francisco, reverses a trial court decision that said VeriSign wasn't liable in the dispute because a domain name was "intangible property."

In this decision, a panel of three judges disagreed with the trial court decision, saying that a Web address is, indeed, property and that VeriSign should be held liable for giving it away without Kremen's permission.

"Like other forms of property, domain names are valued, bought and sold, often for millions of dollars," Judge Alex Kozinski wrote on behalf of the panel of judges. "Exposing Network Solutions to liability when it gives away a registrant's domain name on the basis of a forged letter is no different from holding a corporation liable when it gives away someone's shares under the same circumstances. The common law does not stand idle while people give away the property of others."

The case originated in 1995 when Stephen Cohen sent a forged letter to registrar Network Solutions, which VeriSign purchased in 2000, requesting that the Sex.com domain be transferred to his name. Network Solutions transferred the domain without verifying the move with Kremen, and Cohen proceeded to build a thriving pornography business around the popular domain.

Kremen sued Cohen in 1998 for the unlawful conversion of his property, although courts have generally held that under the tort of conversion, property must be tangible.

The U.S. District Court for the Northern District of California ordered the domain name returned to Kremen in 2001 and hit Cohen with a $65 million judgment. The court rejected Kremen's claim against VeriSign, however, so he appealed that decision.

Cohen fled the country, and Kremen wasn't able to collect the money from him, so Kremen went after VeriSign. But VeriSign claimed that a domain name wasn't property and that therefore it isn't responsible for the transfer, according to Sex.com.

A VeriSign spokeswoman said the company doesn't comment on ongoing litigation.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Linda Rosencrance

Computerworld
Show Comments

Father’s Day Gift Guide

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?