I just ran into a weird one.
I went to my local web server to register a couple of domain names that the customer looked at earlier today. The domain names could not be registered at MT, they were reserved. When I checked Network Solutions whois the domain names were offered by NetSol as being available.
As I dug deeper I learned that NetSol is “protecting” domain names by reserving them when someone searches for the name. What protecting means is that you can do one of two things:
1) Register the name at NetSol for an expensive price.
2) Call NetSol and have the domain unregistered so that you can register it elsewhere. (Think about spending 15 additional minutes for something that used to take 3 minutes.)
NetSol is saying that what they are combating is Front Runners - people running spyware on your computer and waiting for you to search for domain names. When the front runner sees you searching they go and grab the domain name before you do so that the front runner can sell it to you for a profit.
The problem is that when you go and register the domain name that was “reserved” at NetSol there is absolutely no validation process to see if you are the person that searched for it earlier or a front runner - they just register it at their higher price.
There is no question that if front runners exist than it would be good to figure out a way to block them. However, the cynic in me sees this as a way for NetSol to jump on a concern (front runners) to keep domain names being registered there rather than somewhere else.
I would love to hear others opinions - am I missing something here?