Nominet UK, the
national registry for all .uk domain names, has been awarded more than
AUS$1.3m in damages following a data mining scam that led to thousands of
Nominet registrants receiving misleading domain name notices.
Legal firm Pinsent
Masons said that the case goes back to January 2003 when Nominet discovered
that its WHOIS
database, which lists domain names and their owners, had been illegally
mined.
Details of registrants were "scraped" from the database and 50,000
registrants received misleading notices from an unknown "UK internet registry".
The unsolicited notices resembled invoices and tried to sell .com names to
the holders of .uk names.
Nominet warned its registrants to disregard the notices, and began an
investigation which led to Chesley Rafferty and Bradley Norrish and three of
their companies (Diverse Internet Pty Ltd, Internet Payments Pty Ltd and
Seychelles-based UK Internet Registry Ltd).
In September 2004 Rafferty and Norrish, together with their three companies,
were found liable for copyright infringement and breaches of Australian fair
trade laws by copying data from Nominet's WHOIS service, and issuing misleading
domain name registration notices.
Nominet has been awarded damages for copyright infringement of AUS$810,953,
with additional damages of AUS$500,000 to reflect the "flagrancy" of the
breaches.
The latter award is one of the highest additional damages awards ever made by
the Australian courts, according to Nominet. The defendants are also liable for
the costs of the proceedings.
"We take the protection of our intellectual property and copyright ownership
very seriously, both as the core of our business and in protecting our .uk
registrants from domain name scams," said Nominet chief executive Lesley Cowley.
"This judgment not only recognises the value of Nominet's domain name
register, but underlines the responsibility of legal systems worldwide in
tackling internet scams.
"By fighting, and winning, this case we are very clearly showing that
scamming is a serious industry issue which will not be tolerated."
Struan Robertson, editor of Pinsent Masons'
Out-law
website, explained that the case was a civil action rather than a criminal
proceeding.
"The WHOIS database is in the public domain, but you are not entitled to
scrape it and use it in this way. They may also have been 'passing off' by
pretending to be a Nominet representative," he said.
"It was copyright infringement on a large scale but, because it is a civil
action, there is no threat of a custodial sentence in such a case."
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