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Domain poisoning: NeimanMarcus sues two Internet registrars for name "tasting"

March 26, 2007

Neiman Marcus Group Inc., holding company for (no surprise here) iconic stylish clothing chain Neiman Marcus, have sued Denver-based Internet domain registry companies Name.com LLC and Spot Domains LLC for granting what amounts to be provisional registration for domain names that could confuse potential site visitors into thinking they've visited the actual Neiman-Marcus site.

The registrars are accused of enabling some 40 bogus site names. The complaints ask for $100,000 in damages for each name.

The suit associates these deceptive site naming practices with an approach often referred to as "domain name tasting." This involves working with customers to launch "sites" for a provisional five-day period in which traffic to the bogus sites are logged and compared to each other to see which have the most potential for traffic. This traffic, it is believed, would then generate contextual advertising.

Based on site logs, the URLs with the most traffic would then be provisioned by the domain name companies to their customers as the ones with the most ad potential-and thus worth buying beyond the provisional five-day period.

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