Domain “tasting” and “kiting“, which are where companies (often registrars) use a loophole in the domain purchase cancellation policy to hold domains without paying for them, are finally heading toward an end. Using “tasting” and “kiting” techniques a huge number of domains that otherwise would be available are held by corporations who essentially “squat” on the domains and collect click through advertising revenue. The technique is ultimately highly profitable and easily pays for the the difficulties of managing huge swaths of essentially stolen domains.
Unfortunately those huge swaths of stolen domains are subsiquently not available for general registration for legitimate users. Furthermore since these false registrants currently hold the domain, they can essentially offer them for ransom, even though they don’t actually own them.
ICANN is now adding fees, though relatively low, that will make it cost prohibitive to kite the domains – no longer can the specious registrants get a full refund. The net effect should be to put an end to the tasting/kiting schemes.
For those of us who need domains for legitimate uses, corporate or otherwise, this is great news.
More can be found here.
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