You're most likely aware that the domain 358.com expired recently, reached "Pending Delete" status, and then SnapNames caught the name. At the last count, the domain had reached a record setting price of $430,000 with 7 bidders above $250,000.
There have been many people asking how a NNN.com domain could possibly be allowed to reach pending delete status. A post by @DNabc on this NamePros thread has uncovered the reason behind 358.com expiring.
It all appears to involve a lawsuit filed by US casino operator Las Vegas Sands against trademark infringers from Asia. The federal judgement ruled that Las Vegas Sands suffered monetary loss and irreparable injury to its business and reputation due to the conduct of the registrants of 68 domain names operating online casino activities that mislead consumers into believing they were associated with the Sands trademarks.
Las Vegas Sands was awarded $2 million for the infringement of their trademarks, plus a further $150,000 for infringement of design.
358.com was ordered to have its domain server information removed alongside domains such as 359.com, 2089.com, 6953.com, and jinsha.com. It seems that as 358.com in particular was used to such an extent in the original infringement that the owners have opted to let the domain expire after server information for 358.com was removed. You may be asking why they didn't sell the domain instead of letting it expire. I'm not a legal expert, but I think that Las Vegas Sands would have filed a suit to ensure that any money from the sale of 358.com would have gone towards paying their $2 million payout.
It appears that 358.com, 2089.com, and jinsha.com were all used as directories to online casinos using Las Vegas Sands' trademark design, as well as the use of the word Jinsha - a term used by Las Vegas Sands to act as the Chinese equivalent of the Sands mark. You can see an archived version of the 358.com website at Archive.org.
Whoever wins the auction for 358.com may have a few disgruntled customers contacting them, as Las Vegas Sands only became aware of the domain's trademark infringement after a 358.com customer contacted Las Vegas Sands after 358.com refused to pay his winnings.
There have been many people asking how a NNN.com domain could possibly be allowed to reach pending delete status. A post by @DNabc on this NamePros thread has uncovered the reason behind 358.com expiring.
It all appears to involve a lawsuit filed by US casino operator Las Vegas Sands against trademark infringers from Asia. The federal judgement ruled that Las Vegas Sands suffered monetary loss and irreparable injury to its business and reputation due to the conduct of the registrants of 68 domain names operating online casino activities that mislead consumers into believing they were associated with the Sands trademarks.
Las Vegas Sands was awarded $2 million for the infringement of their trademarks, plus a further $150,000 for infringement of design.
358.com was ordered to have its domain server information removed alongside domains such as 359.com, 2089.com, 6953.com, and jinsha.com. It seems that as 358.com in particular was used to such an extent in the original infringement that the owners have opted to let the domain expire after server information for 358.com was removed. You may be asking why they didn't sell the domain instead of letting it expire. I'm not a legal expert, but I think that Las Vegas Sands would have filed a suit to ensure that any money from the sale of 358.com would have gone towards paying their $2 million payout.
It appears that 358.com, 2089.com, and jinsha.com were all used as directories to online casinos using Las Vegas Sands' trademark design, as well as the use of the word Jinsha - a term used by Las Vegas Sands to act as the Chinese equivalent of the Sands mark. You can see an archived version of the 358.com website at Archive.org.
Whoever wins the auction for 358.com may have a few disgruntled customers contacting them, as Las Vegas Sands only became aware of the domain's trademark infringement after a 358.com customer contacted Las Vegas Sands after 358.com refused to pay his winnings.
