.mobi I bid $611,000 for music.mobi - Lawsuit Pending

[musicdotmobi]

Hello everyone,

I have been a part of this SEDO .mobi auction auction and I am the one responsible for the bid $611,000 for music.mobi.

However I stopped bidding at the point where I realised that the NEW auction was a scam because the two bidders that were bidding me up were NEW bidders who were not even involved in the initial auction.

The initial auction closed with me winning the last bid at $66,000.

I received an invoice and 2 emails regarding the winning bid.

Let me ask everything this key question? If you are bidding on eBay and you have a 7 day auction and you take a chance and wait til the last second to bid what if your DSL line or connection or even your computer crashes? I think many of us had this experience in the past. I know I had this happen last week on eBay when my computer froze and in essence lost the bid. Did eBay care? NO! Does SEDO care if you WERE going to bid and failed to do so if your computer crashed or had a slow connection? NO! Well, wait a second in this case they do.

They proclaimed me winner send me 2 emails, sent me an invoice. I considered the bid finished and was ready to go and play guitar and record this new song I was working on in the studio. By chance, I get an email by whom? BOTH the .mobi MTLD who started INVITING people via a bulk message hyping them up that the servers have crashed and that there is huge demand for the .mobi auction. Then Sedo followed. So 2 bulk messages sent to the world inviting them to attend a NEW auction. Not only that, they extended the auction to 2.5 hrs NOT 5 minutes.

Anyhow, I seriously have been negotiating with .mobi since 2006 about music.mobi but they seem to want money and to rob everyone of money than have someone develop a super site like I am. So the whole RFP was bogus. I tried fir over a year and they just said "you will have to bid for it".

So, I am really upset, they caused me to miss my jam session and on top of that they allowed NEW bidders to the new auction. I say I have NO PROBLEM with old bidders that were active in the original auction bidding their maximum. Even though I was invoiced $66,000 I emailed SEDO and MTLD letting them know that I would pay them $81,000 because bidder 9 (I was the last bidder 12 to bid for the name in the original auction) rebid his maximum at $80k.

So there comes along NEW bidders 13 and 14 who did not even attend the initial, legal auction. They probably got the bulk email fro both SEDO and MTLD and invited themselves to the dance. HOW can an auction that has ended have NEW bidders? I have no problems bidding with the 12 bidders that have bid against me in the initial auction but NEW bidders who were enticed by HYPE emails? Have you ever heard of a closed auction then an hour later having a new bidder say I will outbid the winner even though i was not even in the auction? NO!

Anyhow, the bid to $616,000 is illegal. I sent the MTLD and SEDO an email and let them know that they should retract all my bids ($611,000) that were automatically placed by SEDO as a result of NEW bidders who were not even active in the original auction. In the new auction, the only legal bidder was bidder 9 who was also in the original auction. The bidder bid for $80k and i outbid him.

How can I be declared a winner then told that I am not the winner then they invite new bidders? Also how can they say that their terms of services states that they can redo the auction and there is no legal agreement? REALLY? I checked it and i saw no section that related to servers crashing and technology interruptions.Tough luck, you had 7 days to bid and you didnt. You cant be bidding after. You take a chance, then be brave enough to live by it and acknowledge that you had considerable time to bid. And the new bidders 13 and 14 and dont care who you are but you had no place bidding in an auction with the old active bidders.

Sedo I have bought numerous domains for tens of thousands of dollars and I refuse to park them and make money off parking (Domain King you can do that and **** the internet up for all of us). I will NEVER do business again with thieves especially the MTLD. They are making bank and playing everyone.

OK my story is not done yet. I stop bidding at $611k because in my mind I should not be bidding against NEW bidders (yes I did realise it at the end) who had no place in the auction since they did not attend the original one. So i stop and half an hour later I get a message from SEDO asking me if I was interested to buy mp3s.mobi for $500,000? So let me get this straight. because I bid up to $611,000 (yes I am retracting this bid and every other bid made against NEW, illegal bidders), does that mean you think I should buy another music domain? I told them I would not buy mp3s.mobi for $300 and basically told them that they will hear from my lawyers if this mess is not solved.

I suggest a class lawsuit and I seriously will BOYCOTT both SEDO and MTLD. I loved SEDO and have been a client for years but this money hungry, sleazy, unethical tactics are unacceptable. For all of you complaining that you did not get a bid in the last 5 minutes tough luck, you had 7 days (considerable time that is). I took a chance and won. I would have bid higher but I am not going to fill SEDO and MTLD's pockets with my hard earned money because they screwed up royally.

What can I say? I am ready to kick some serious butt here. And sue these guys for emotional distress. SEDO seriously, you lost one of your top clients and super domainers. Lost my respect and you have robbed me and others in all fairness. I seriously will NOT let this go. If justice is not served, I will sue, I will go to the press, I will tell my story, I will post all the emails I got, invoices and screenshots of my winning bid and I am sure it will reflect future SEDO=MOBI auctions. Did anyone say sex.mobi? Yes, the MTLD is greedy and so is SEDO. This is bad business. REALLY bad. Not sure I can trust them. i will not be surprised if Bidder 13 and 14 were internal just to bid up my proxy of $611,000.

The world record is not real people. It would have been if other original bidders bid me up to $615k. The new bidders in my mind either are internal fake bidders or new, illegal bidders who came in after being sent bulk emails by both SEDO/MTLD full of hype.

If they do not accept my winning auction and fair win versus the original bidders even in the new auction, then I WILL pursue this since I do have some spare change here now.

Costa

MusicMusic.com
Music.us
Music.pro
Music.im
Music.fm
MP3.fm

Blog: Entrepreneur.pro


PS After 3 years of development, I will be launching the biggest music site in the beginning of 2008, so if anyone knows any bands who would be interested, let them know to sign up their email at music.us. So much for the .mobi implementation on my site.

 

[Rubber Duck]

Who is going to take him to WIPO:?

Well, how about the originator of this thread for one!

 

[NameCharger]

..

 

[Mobi Cheap]

Well, how about the originator of this thread for one!

I'm not going to take sides between these two gentlemen (not until I know more about this case at least) but just to complete this line of thought - did you really mean the WIPO UDRP procedure?

 

[Rubber Duck]

I'm not going to take sides between these two gentlemen (not until I know more about this case at least) but just to complete this line of thought - did you really mean the WIPO UDRP procedure?

Well, I think it will be one of the avenues that has to be explored. Mobi presented it TOS as part of its bid to get the extension in the first place. If those TOS are not be correctly observed, I cannot help but feel there are going to be legal issues here.

 

[creature]

There may be Bad Faith issues here as well. The buyers is suppose to have bought with the intention to develop a compliant website. The fact that he has stated that his intention is only to resale may actually mean that he could be subject to WIPO, no?

No worse than Mtld who kept and prevented the use of the name for 14 months and did nothing with it other than sell it for shed loads.

 

[Rubber Duck]

No worse than Mtld who kept and prevented the use of the name for 14 months and did nothing with it other than sell it for shed loads.

Well, except that was actually part and parcel of the agreement with ICANN, bizarre as it may sound.

 

[Mobi Cheap]

Well, I think it will be one of the avenues that has to be explored. Mobi presented it TOS as part of its bid to get the extension in the first place. If those TOS are not be correctly observed, I cannot help but feel there are going to be legal issues here.

That must be one of the safest predictions I've read recently

Of course there are legal issues if the thread title states: "...Lawsuit Pending"

As for the other part of your post, are you saying .mobi should be held to a different standard by WIPO UDRP panelists (whether that's even relevant to this thread is a different issue)?

And again, you were talking about the WIPO UDRP procedure, right:?

 

[tricolorro]

actually .. no. we all know that most wait until the last minute to place bids on online auctions. well with about 5-8 minutes left - no one could place a bid meaning the auction didn't conclude 'correctly' - hence the price for about 85 of the 100 domains in auction climbed dramatically after the auctions were restarted and ran their new due course, mainly because all those that waited to place their last minutes bids finally could.

:hi:

namewaiter, I just came across this posting below taken from the commentary section on DomainNameWire.com.

I hope Andrew and the poster, myview, don't mind my posting it here.

:imho: it could put SEDO in a very bad way.

"Quote from SEDO’s TOS:
——————–

“Sedo in no way guarantees or further warrants that the web page on which bids can be placed (“Bidding Page”) during the Auction Period is permanently accessible. If a Bidding Page is not accessible, the Seller may not, in the future refer to a potentially higher bid during this time period as a mechanism for not following through with a sale. Furthermore, a potential bidder may not argue, for the same purposes, that he would have been the highest bidder the Domain up for Auction if the webpage would have been available.”
————-
(myview's commentary)
"IMO this paragraph Say’s just about all there is to say. This is a Direct quote from their TOS and this all by itself may very we’ll be what gets “ALL” the domain names transferred to the original high bidders before they decided to re-start the auction over 2 hours later.

Obviously not good for Mtld’s pocketbook, but the rules are the rules, and in this case it appears they very we’ll may have to let them go at the prices recorded and the confirmation emails sent to the winners before they chose to re-open this “closed” auction as per their own TOS."



Link here (Look for comment # 10, "my view" is the poster):
http://snurl.com/MobiLawsuit

Patrick

 

[wot]

I think this was posted earlier but does it not blow the scam thing out of the water :?

http://www.conceptualist.com/2007/12/06/alvaro-albarracin-breaks-dotmobi-sales-record/

Coupled with Sedo's disclaimer, and I would assume the "sold" emails were auto generated, a good lawyer would not have to work hard to uphold Sedo's end.

Just applying logic.

 

[namewaiter]

Patrick,

i would have to say, that if that excerpt is truly from their TOS & it hasn't been taken out of context & this type of situation isn't covered in other areas of their TOS...

then the original winning bidders might very well have a case, but i'm no lawyer ... it will be interesting to see how this plays out.

 

[Alex]

Off topic:

Did you read about this Alvaro who "won" the auction of 6 .mobi's?
If you didn't do so please follow this link and read to the end. Very interesting.

http://cbs4.com/topstories/jesus.Christ.Jesus.2.395540.html

PS: And I think he is also a namepros? member DNProperty.com

I found that http://www.text-links-ads.com/ is Alvaro's site, and there is a Dnproperty.com logo, and mobe.mobi advertised as for sale. Also mobe.mobi is a domain in the sig of DNProperty.com member here on NP.

 

[tricolorro]

Patrick,

i would have to say, that if that excerpt is truly from their TOS & it hasn't been taken out of context & this type of situation isn't covered in other areas of their TOS...

then the original winning bidders might very well have a case, but i'm no lawyer ... it will be interesting to see how this plays out.

:hi: namewaiter,

Yes, this will be interesting to see how it plays out.

The excerpt I posted was taken from a commentary on DomainNameWire
as I said. I have since seen it posted elsewhere (I think here on NP).

Even if that was taken from Sedo's regular Auction Terms and not for this .Mobi auction, I can't see how they could try to play it both ways.

Additionally, if Sedo really sent out notices that their Servers had crashed
when in reality their Servers were just overloaded ,that could be a problem for them too.

Interesting times ahead.

Patrick

 

[sashas]

you know, I would be so so happy if Sedo gets f*cked bad. I wanna see this unethical company go down.
Anyone remember the Trafficz.de fiasco? Sedo regs Trafficz.de and points it to their homepage. Thats about as unethical as you can get.

 

[Rubber Duck]

I'm not going to take sides between these two gentlemen (not until I know more about this case at least) but just to complete this line of thought - did you really mean the WIPO UDRP procedure?

Yes, I did, but although it clearly makes a case for Lack of Legitimate Interest and Bad Faith, the first condition for UDRP is on reflection going to be impossible to meet, I think! My Bad.

 

[sashas]

so is Costa filing a lawsuit against Alvaro or Sedo or mTLD?

 

[TheBaldOne]

Sashas, my understanding at present is it will be against Sedo and possibly mTLD.

 

[Dotplanners]

money to spend

I'm just trying to figure out how people have $60,000 plus just laying around to buy domain names.

They sell domain names for a profit. If you aren't sure how to do that easily, then hire yourself a domain consultant. Money well invested.

Funny, I wasn't sure about .mobi domains myself, and i bought 100 of them in a bulk purchase from a guy who had a gambling problem and needed quick cash. All the domains are one word domains, and some actually get traffic.

I posted them on several forums (not here tho, sorry), and tried to sell the lot of them for an unbelievable $10k, just to test a theory. At least ten of the domains are worth $10k or more.

How many offers did I get? NONE.

I'm going to post them again on Namepros and see if anyone here REALLY believes in .mobi domains, because these are ONE WORD .MOBIS going for an average of only $100 a piece.

I'll even allow cherry picks at double the bulk price ($200 a piece).

The results from offers (or lack of offers) on my .mobi sales posting will be the subject of a future blog about .mobi's at my blog site. (see below)

Namepros is a classy forum. Dig it.

http://www.successclick.com

 

[Skinny]

Wow, what a fascinating story.

First off I have no dealings with sedo (a few listed names, but never sold/bought anything there). I'm a small fish domainer I'm afraid.

I also am not a .mobi hater or fanboy.

But from a legal aspect I do think musicdotmobi that you do have the upper hand here for pretty much the reasons you've pointed out.

This whole thing seems really fishy too me. Like it was done on purpose perhaps. . . and the fact that sedo makes money off the commission would make a great conspiracy theory to have a "server failure".

Anyway, I think from a legal point of you, you should win this. Please keep us updated as to what happens. I truly hope you get your domain back.

And on a lighter note you have some wonderful music domains.

Skinny

 

[sashas]

They sell domain names for a profit. If you aren't sure how to do that easily, then hire yourself a domain consultant. Money well invested.

Funny, I wasn't sure about .mobi domains myself, and i bought 100 of them in a bulk purchase from a guy who had a gambling problem and needed quick cash. All the domains are one word domains, and some actually get traffic.

I posted them on several forums (not here tho, sorry), and tried to sell the lot of them for an unbelievable $10k, just to test a theory. At least ten of the domains are worth $10k or more.

How many offers did I get? NONE.

I'm going to post them again on Namepros and see if anyone here REALLY believes in .mobi domains, because these are ONE WORD .MOBIS going for an average of only $100 a piece.

I'll even allow cherry picks at double the bulk price ($200 a piece).

The results from offers (or lack of offers) on my .mobi sales posting will be the subject of a future blog about .mobi's at my blog site. (see below)

Namepros is a classy forum. Dig it.

http://www.successclick.com

doesn't surprise me that no one bought the one word .mobis. Tell us if you get some serious end user offers - I'm talking big corporations trying to jump in on the .mobi bandwagon.

 

[Mobi Cheap]

Yes, I did, but although it clearly makes a case for Lack of Legitimate Interest and Bad Faith, the first condition for UDRP is on reflection going to be impossible to meet, I think! My Bad.

Kudos for conceding it.

The reason why I italicized the name of the facility the second time I asked the question was that the respected organization you mentioned actually does have something potentially useful to the parties involved (in case they are not talking in private already) - a mediation facility.

As a very successful businessman though Costa surely knows best what's best for him.

Cynically speaking, as a .mobi owner I wouldn't mind a highly publicized court case too much - despite the delay it might bring in terms of development of some prime domains.

When detractors say nobody has heard of .mobi, they are not as wrong as usual - starting from such a low base of public awareness it appears there can be no such thing as bad publicity for .mobi right now.
:imho:

 

[TheBaldOne]

BREAKING NEWS!!!!

Foloow this link:

http://www.namepros.com/dot-mobi/405671-k-i-l-l-k-i.html


Dot mobi retracts news release of breaking records at Sedo auction!

 

[Enrico Schaefer]

Possible Causes of Action

It is possible you could sue them. Auctions are regulated in all states. Sedo is located at ..

Sedo.com, LLC
161 First Street, Fourth Floor
Cambridge, MA 02142
USA

.... Thus MA law probably applies. MA law is very consumer friendly.

There are also unfair competitions laws in MA which might apply. Of course, there will be some contractual limitations defenses you will have to overcome, but those aren't necessarily impossible. Here is what their licnese agreement states:

YOU AGREE THAT USE OF SEDO'S SERVICES AND THE SITE IS AT YOUR SOLE RISK AND THAT THE SERVICES ARE PROVIDED ON AN "AS IS" AND AN "AS AVAILABLE" BASIS. SEDO EXPRESSLY DISCLAIMS ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. SEDO MAKES NO WARRANTY TO ANY PROSPECTIVE BUYER THAT THE DOMAINS LISTED BY SELLERS ON THE SEDO DATABASE HAVE IN FACT BEEN REGISTERED, OR THAT THE SELLERS ARE THE LEGAL OWNER OF SUCH DOMAINS, OR THAT THEY ARE AUTHORIZED TO ASSIGN/LICENSE SUCH DOMAINS. SEDO MAKES NO WARRANTY THAT THE BUYER MAY USE THE DOMAIN OR THAT THE SELLER MAY TRANSFER THE DOMAIN WITHOUT VIOLATING ANY RIGHTS OF A THIRD PARTY. SEDO MAKES NO WARRANTY THAT THE SERVICES WILL MEET YOUR REQUIREMENTS, THAT THEY WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR FREE. NOR DOES SEDO MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM THE USE OF THE SERVICES OR AS TO THE ACCURACY OR RELIABILITY OF ANY INFORMATION OBTAINED FROM THE SITE. YOU UNDERSTAND AND AGREE THAT YOUR USE OF ANY MATERIAL AND/OR DATA DOWNLOADED FROM THE SITE OR ANY SERVICES OBTAINED THROUGH OR PROVIDED BY SEDO IS AT YOUR SOLE DISCRETION AND RISK AND THAT YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE RESULTING FROM ANY SUCH DOWNLOAD OR USE OF SUCH INFORMATION OR OTHER RELATED TRANSACTION. NO ADVICE OR INFORMATION THAT YOU MAY OBTAIN FROM SEDO OR THROUGH THE SERVICES PROVIDED BY SEDO SHALL CREATE ANY WARRANTY NOT EXPRESSLY STATED THEREIN.

You agree that, regardless of any statute or law to the contrary, except as prohibited by law, any claim or cause of action arising out of or related to this Agreement, the Site, or Sedo's products or Services, must be commenced within one (1) year after the cause of action arose; otherwise, such cause of action is permanently barred.

IN NO EVENT SHALL SEDO, ITS AFFILIATES, SUBSIDIARIES, OFFICERS, DIRECTORS, EMPLOYEES, OR SUPPLIERS BE LIABLE FOR LOST PROFITS OR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE SITE, THE SERVICES, OR THIS AGREEMENT (HOWEVER ARISING, INCLUDING NEGLIGENCE). SEDO'S LIABILITY, AND THE LIABILITY OF ITS AFFILIATES, SUBSIDIARIES, OFFICERS, DIRECTORS, EMPLOYEES, AND SUPPLIERS, TO YOU OR ANY THIRD PARTIES IN ANY CIRCUMSTANCE IS LIMITED TO THE GREATER OF (A) THE AMOUNT OF FEES YOU HAVE PAID TO US IN THE 12 MONTHS PRIOR TO THE ACTION GIVING RISE TO LIABILITY, AND (B) $100. YOU AGREE TO INDEMNIFY AND HOLD SEDO AND (AS APPLICABLE) SEDO'S PARENT, SUBSIDIARIES, AFFILIATES, OFFICERS, DIRECTORS, AGENTS, AND EMPLOYEES, HARMLESS FROM ANY CLAIM OR DEMAND, INCLUDING REASONABLE ATTORNEYS' FEES, MADE BY A THIRD PARTY DUE TO OR ARISING OUT OF YOUR USE OF THE SITE OR THE SERVICES, YOUR BREACH OF THIS AGREEMENT OR THE DOCUMENTS IT INCORPORATES BY REFERENCE, OR YOUR VIOLATION OF ANY LAW OR THE RIGHTS OF A THIRD PARTY.

You might also get specific performance which get's you the domain itself, not damages.

Enrico Schaefer, Attorney
Traverse Legal, PLC

www.TraverseLegal.com
www.TheTechnologyLawyer.com

[email protected]

 

[TheBaldOne]

Enrico, Welcome aboard, it is marvellous seeing you here.

I am sure from this point on several days a week you will be getting enquiries from the members, just remember we are not all millionaires (yet)!

Look forward to reading more of your posts.

Bill

 

[DomainTalker]

Enrico...

Check Sedo TOS Section 5.1.2.7...


I think you'll find that this clinches it...

...Talks about how Sedo cannot accept higher bids when the auction page is not available (therefore Sedo cannot use these same 'higher' bids in the final minutes of the auction to trigger an 'extension' of the auctions)....

...Therefore the 'extended auctions were invalid...

...And Sedo was correct to close the auctions when time ran out - and declare the highest registered bids (made when the auction page WAS available) the winners....ie the original winners.

Also, Section 5.1.2.7 says that the Seller (mTLD) cannot use the fact that higher bids were made, when the page was not available, to claim a higher price - and that the Seller has a binding contract with the highest bidder of the bid that was last made when the auction page WAS available (ie the original winners).

mTLD offered the names for auction under Sedo TOS....Therefore, as the Seller, Section 5.1.2.7 binds mTLD.


So....Sedo TOS, itself, says that the 'extended' auctions were invalid - and that the Seller has a Binding Contract with the original bidders.

Thus, mTLD must return the names to the original bidders - at the price they bid at.

.

 

[tophatter]

I bid on a name and the reserve wasn't met but I was the high bid,I then tried to bring the bid up (which only was a couple of hundred $$) and that's when no one could get on.
I re-entered the bidding process again after I found out the auction was to re commence and again after biddig was the highest bid with 5 minutes left but had to leave the computer because of prior commitments. I ended up losing by $100 .
Not sure if I have any case here being that I was the highest bidder at the time of server down but I wish I did.