Optima Sues VeriSign – For Allowing Domain Transfer By Dupe

VeriSign is in potential hot water again over a domain name transfer. This time, though, it isn't a rogue stealing a stranger's domain name with a forged letter, as Stephen Cohen did to Sex.com owner Gary Kremen in 1995. This time, it's Optima Technology, accusing VeriSign of transferring its URL to a former employee it says duped the registrar with a letter asking for the transfer without Optima permission.

According to InternetNews.com, Optima is seeking $3 million in damages, alleging VeriSign, then known as Network Solutions, allowed the transfer in 2001, after former employee Michael Decorte sent them the letter.

Optima didn't learn of the transfer until later in 2001, and didn't win full control of Optimatech.com back until 2002. They first registered the domain with the then Network Solutions in 1990. The domain does not expire now until 2012.

"I think it's the start of many unless they decide to settle with me," said Kremen when reached by AVN.com . "I think we started the crowd rush."

Kremen, who won a $65 million damage award against Cohen and the return of Sex.com, is still trying to have VeriSign held accountable for the cyberjack. Cohen used a forged letter to steal and re-register Sex.com in 1995, but he's been out of the country since the damage award was given to Kremen in court.

Whether VeriSign will be held partially accountable for the Sex.com hijack, even if it didn't do anything directly to instigate the hijack, will be settled in a trial that's now set to take place in early 2004. "We have a case management meeting on Monday," Kremen said, meaning October 6. "We're preparing for trial."

VeriSign has declined comment on the pending cases, but Optima executives told InternetNews.com they were looking at a clear-cut enough case. "This is no different than parking your car with the valet, giving your key to the valet attendant and coming out after a wonderful dinner, only to find your car was stolen as the valet gave your keys to a crook without checking to see if you authorized the theft," said president Barry Eisler in a statement obtained by InternetNews.com. "We are taking this action now, after notifying Network Solutions on several occasions that its actions caused our company a great deal of damage and lost revenue."