[ncdnhc-discuss] Fwd: [nc-deletes] Minutes - Conference Call, November 15

[DannyYounger at cs.com]

Harold,

Let's take a look at this situation from the registrars point of view...

A domain expires tomorrow.  Upon such expiration the Registry immediately 
invoices the registrar who must either execute the delete command and receive 
a credit against the charge or must proceed with the renewal process.  In the 
event that the registrar has an auto-renewal program, there is a strong 
likelihood that a certain percentage of registrants will dispute the renewal 
and will notify their credit card companies accordingly (resulting in a 
chargeback to the registrar).  At this point the registrar has already 
shelled out the money to the Registry and is past the window of opportunity 
to receive a credit from the Registry.  The registrar now believes it has 
"rights" to the domain name because it has paid out its own money for that 
domain name to the Registry in addition to paying the associate chargeback 
fees imposed by the credit card services providers.  This in turn results in 
the registrar putting the domain name up for auction in the secondary market 
in order to recover its expenses.

In this very common scenario, the name is not returned to the pool of 
available names as the "default option" but rather becomes the exclusive 
property of a single registrar.  You are arguing that the name can and should 
go back into the pool.  I don't see this happening as long as registrars are 
unable to secure a credit from the Registry for domains that fall victim to 
such chargebacks.