Stolen Domains Big Issue in our Community - What do you do if you buy one?

[DN BROKER]

I have not purchased a stolen domain, rather have read a lot of threads lately people buying stolen domains not knowing, until they post it for sale and the original owner jumps in and claims to be the owner who got his domains stolen...

As the new owner of a stolen domain, what would you do next?

Would you ask the original owner to compensate you for the damage?

I believe who ever the new owner is, he or she should return the stolen domains to the original owner for the same cost he or she paid.

What does everyone else think?

 

[Ms Domainer]

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I suspect that if you buy a stolen domain, you're out of luck, unless you can find the thief who sold it to you.

The rightful owner owes you nothing; after all, he or she is the victim of a crime and has a right to his/her property without having to compensate anyone.

It's "Buyer Beware," I'm afraid.

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[DN BROKER]

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I suspect that if you buy a stolen domain, you're out of luck, unless you can find the thief who sold it to you.

The rightful owner owes you nothing; after all, he or she is the victim of a crime and has a right to his/her property without having to compensate anyone.

It's "Buyer Beware," I'm afraid.

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I disagree, anyone who buys domains should use Google to SEARCH THE domain name. If no red flags are raised in the search result and you purchase the domain name, and then someone claims its stolen. I would ask the owner to pay the cost/damage!

But, if the domain was already listed stolen and search results listed DOMAIN STOLEN Alert - and you still decide to buy it, then YES you are the idiot and should return the domain name!

I posted this thread, due to one case im following on dnf. Buyer was not aware of stolen domain, and now their is a dispute....

 

[shane mac]

I think new regulations need to be intoduced to protect both buyer and seller.
Buying a domain then finding out its stolen, once you have paid 10k for it, then having it taken back without compensation is bad, real bad. Perhaps alldomains registered need to have their own proof of ownership id, checkable with the registrars. Only way to combat it.

 

[DN BROKER]

I think new regulations need to be intoduced to protect both buyer and seller.
Buying a domain then finding out its stolen, once you have paid 10k for it, then having it taken back without compensation is bad, real bad. Perhaps alldomains registered need to have their own proof of ownership id, checkable with the registrars. Only way to combat it.

I agree, we need a new system to protect us all from scammers.

 

[Ms Domainer]

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In a court of (U.S.) law, if you buy stolen goods, even unknowingly, you're simply out of luck. Period. Now the original owner has to prove ownership, but if he/she can establish ownership, then that's it. (EXCEPTION: if the original owner is in the scam).

That is, unless you can find the thief and sue him or her, which has nothing to do with the original owner.

Any pawn shop will tell you that when they buy a stolen item, they have to turn it over to the police without compensation; they do not receive any compensation or reward (unless the owner chooses to do so). They simply must eat the cost.

Now if a professional brokerage firm (Sedo, etc.) sells you a stolen domain, they would be responsible to return the domain to the rightful owner and return the money to the buyer.

I agree that there should be some mechanism in place to protect both sellers (honest ones, that is) and buyers, possibly some kind of domain title insurance (like they require for U.S. real estate). A small fee, paid by buyer and seller could go into a fund to help buyers and sellers from totally losing their investments due to scammers.

Right now, it's up to you to conduct careful research, especially if you buy from forums and ebay. I simply refuse to conduct business that way. When someone is interested in a domain of mine and we agree on a price, I send 'em to Sedo, and I accept the price we agreed upon. It's worth the commission and even the slowness of Sedo (which is often due to a buyer failing to accept the domain in a timely manner).

It stinks, especially when you feel that you have done everything you could to check out the domain and seller, but that is the law.

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[DN BROKER]

Your law only applies to Americans!

 

[Ms Domainer]

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I suspect that other countries have similar laws that protect property rights from thieves.

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[Kate]

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I suspect that other countries have similar laws that protect property rights from thieves.

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Similar elsewhere.
It's akin to being handed out a fake dollar bill. You're out of luck and if you try to fob it off on somebody else you're a scammer...

 

[dotker]

i think its called the anti fencing law correct me if im wrong.. its with most of the countries, but i too would let the owner pay who knows he might not be careful and i have to pay for his/her mistakes

 

[labrocca]

I disagree, anyone who buys domains should use Google to SEARCH THE domain name. If no red flags are raised in the search result and you purchase the domain name, and then someone claims its stolen. I would ask the owner to pay the cost/damage!

That's not going to work since many domains that are stolen are sold quickly and Google is unlikely to have anything indexed.

Your law only applies to Americans!

You are right. But have you thought that the victim might be American and the registrar in the USA? So it won't in the end matter where the buyer is.

but i too would let the owner pay who knows he might not be careful and i have to pay for his/her mistakes

That same logic can be applied to the person who bought the stolen domain. Did the buyer do a whois history search? Was there recent activity in whois change? Was the price too good to be true? Was the seller reputable?

24HourDomainer- What country are you in?

 

[Dave_Z]

http://www.namepros.com/domain-name-discussion/574844-my-domain-hijacked-enom-moniker-legal.html

 

[globegenius]

I did a transfer recently and found out why .ca domains cost more. They have alot more security on them. Of course mostly Canadians will only want this extension though.

 

[DN BROKER]

I did a transfer recently and found out why .ca domains cost more. They have alot more security on them. Of course mostly Canadians will only want this extension though.

Yes Canadian System has stronger defensive security in place to protect domains.

 

[globegenius]

Make sure your hosting company provides free locking on your domain. This should be standard.

 

[Domagon]

In a court of (U.S.) law, if you buy stolen goods, even unknowingly, you're simply out of luck. Period. Now the original owner has to prove ownership, but if he/she can establish ownership, then that's it. (EXCEPTION: if the original owner is in the scam).

Spot on.

Now if a professional brokerage firm (Sedo, etc.) sells you a stolen domain, they would be responsible to return the domain to the rightful owner and return the money to the buyer.

Not exactly. They would be no more responsible than a real estate broker. That's why the buyer of real estate is strongly urged (typically required, if financing) to purchase a title search / title insurance prior to closing.

There have been numerous instances in which Sedo, Afternic, and others have unknowingly sold* "stolen" domains (some selling for upwards of $10K) and did NOT cover the buyer's loss; legally, such services often don't have to and thus won't.

* "sold" is a bit of a misnomer - they (Sedo, Afternic, eBay, etc) are listing and/or brokerage services, which help facilitate the sale between seller and buyer; they themselves aren't actually selling anything.

Buyer beware.

Ron

 

[Ms Domainer]

Spot on.



Not exactly. They would be no more responsible than a real estate broker. That's why the buyer of real estate is strongly urged (typically required, if financing) to purchase a title search / title insurance prior to closing.

There have been numerous instances in which Sedo, Afternic, and others have unknowingly sold* "stolen" domains (some selling for upwards of $10K) and did NOT cover the buyer's loss; legally, such services often don't have to and thus won't.

* "sold" is a bit of a misnomer - they (Sedo, Afternic, eBay, etc) are listing and/or brokerage services, which help facilitate the sale between seller and buyer; they themselves aren't actually selling anything.

Buyer beware.

Ron

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I meant to say Snapnames, Pool, or NameJet. If you stick with the deleting auctions, you should be pretty safe.

You're right, though. It's up to the buyer to take precautions and do research, especially on an expensive domain.

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[coltter]

The problem is how to judge he/she is the original owner and the domain is stolen from their accounts. How to proof?
IMO just ignore this issue unless they can offer unbeatable proof. Right?

 

[Dave_Z]

The problem is how to judge he/she is the original owner and the domain is stolen from their accounts. How to proof?
IMO just ignore this issue unless they can offer unbeatable proof. Right?

Yup. That's one of the burdens registrars face, and I had a dose of that in my previous life.

Oh, and just found in DNF about 0z5.com. Read about it there in the legal section.

It's nice and kind of the buyer to return it and so on. Unfortunately not everyone's like that as I had since
referenced in the thread above.

 

[Jaco]

A little terrifying to think that someone went to the hassle of stealing 0z5.com.
Anyway, for an expensive name, I'd have UDRP papers filed and a legal action against both the transferring and holding registrars in the pike by next days AM, including an array of emergency motions.

Domains are probably the STUPIDEST thing to steal, as their recovery is inevitable (generally)