Sex.com
Encyclopedia
Sex.com is an Internet
domain name
and web portal
currently owned by Clover Holdings LTD. The domain name was the focus of one of the most publicized legal actions about ownership of domain names. A 2007 book covering the case, called Sex.com, was written by Kieren McCarthy, a journalist who followed the case.
(who also founded Match.com
) registered sex.com with Network Solutions
.
In October 1995, Network Solutions transferred the domain
to Stephen M. Cohen
, who had been trying to gain control of the domain for some time by misrepresentation
, using phone calls, e-mails and forged letters. He eventually persuaded an employee of Network Solutions
to change the ownership details by submitting a fake fax
. After gaining control of the domain, Cohen produced an advertising-heavy site that received up to 25 million hits a day. From payments for click-throughs and other advertising, Cohen was reportedly making $50,000 to $500,000 per month. Kremen undertook steps to recover the domain, while Cohen claimed he obtained the domain legally from Online Classifieds (OCI). A five-year legal battle ensued, led by cyberlawyer Charles Carreon
.
Kremen was victorious in November 2000, when Network Solutions was ordered to return the domain to the plaintiff
. According to the record of Kremen v. Cohen, Cohen was ordered to pay $25 million into court; in April 2001, the California District Court awarded Kremen an additional $40 million for lost earnings, for a total judgment of $65 million. Cohen appealed the judgment and refused to allow assessment of his business: He provided false information and declared most of his companies bankrupt while illegally moving assets out of US jurisdiction. When an arrest warrant
was issued, Cohen fled to Mexico. Kremen offered a $50,000 reward for information, but Cohen remained at large while continuing to file appeals that were rejected. In October 2005, Cohen was arrested in Tijuana, Mexico for immigration violations, and was handed over to US authorities.
Cohen was released from custody on December 5, 2006, when Judge Ware
determined that "the Court is satisfied that Cohen has provided an accounting of assets to the extent that he is able from jail." Cohen currently is representing himself and provided the Court with an address in Mazatlan, Mexico. As of December 21, 2007, 1,350 documents have been filed in the case.
On February 18, 2010, the domain name was ordered to be sold at a foreclosure auction. On March 18, 2010, a day before the auction, Creditors of Escom, LLC filed an involuntary Chapter 11 bankruptcy petition to prevent a possible loss of value by selling the name at foreclosure. At Mike Mann's request the domain was brought to Sedo
to be auctioned.
On October 20, 2010, Sedo.com, reportedly completed the auction, by filing in a California court that it had approved the sale for $17 million to a Clover Holdings LTD. A bankruptcy hearing on October 27, 2010 will determine if the sale is finalized and approved by all debtors. On November 18, 2010, Sedo confirmed the new sale price in a press release, and marked the previous sale at $11.5 million, negating the claimed 17 million buying price published in 2006.
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
domain name
Domain name
A domain name is an identification string that defines a realm of administrative autonomy, authority, or control in the Internet. Domain names are formed by the rules and procedures of the Domain Name System ....
and web portal
Web portal
A web portal or links page is a web site that functions as a point of access to information in the World Wide Web. A portal presents information from diverse sources in a unified way....
currently owned by Clover Holdings LTD. The domain name was the focus of one of the most publicized legal actions about ownership of domain names. A 2007 book covering the case, called Sex.com, was written by Kieren McCarthy, a journalist who followed the case.
History
On May 9, 1994, entrepreneur Gary KremenGary Kremen
Gary Alan Kremen is an entrepreneur who founded personals site match.com, and registered several premiere domain names in the early days of the internet, including sex.com, jobs.com, , and autos.com...
(who also founded Match.com
Match.com
Match.com is an online dating company which reportedly has more than 20 million members, made up of a 49/51 male/female ratio, and Web sites serving 25 countries in more than 8 different languages. Its headquarters are in Dallas, Texas and the company also has offices in West Hollywood, Tokyo, Rio,...
) registered sex.com with Network Solutions
Network Solutions
Network Solutions, LLC is a technology company founded in 1979. The domain name registration business has become the most important division of the company. As of January 2009, Network Solutions managed more than 6.6 million domain names.-History:...
.
In October 1995, Network Solutions transferred the domain
Domain name
A domain name is an identification string that defines a realm of administrative autonomy, authority, or control in the Internet. Domain names are formed by the rules and procedures of the Domain Name System ....
to Stephen M. Cohen
Stephen M. Cohen
Stephen Michael Cohen is an American who gained notoriety after acquiring control of the domain name Sex.com in 1995. He was later implicated in involvement in running the controversial peer-to-peer service EarthStation 5....
, who had been trying to gain control of the domain for some time by misrepresentation
Misrepresentation
Misrepresentation is a contract law concept. It means a false statement of fact made by one party to another party, which has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality...
, using phone calls, e-mails and forged letters. He eventually persuaded an employee of Network Solutions
Network Solutions
Network Solutions, LLC is a technology company founded in 1979. The domain name registration business has become the most important division of the company. As of January 2009, Network Solutions managed more than 6.6 million domain names.-History:...
to change the ownership details by submitting a fake fax
Fax
Fax , sometimes called telecopying, is the telephonic transmission of scanned printed material , normally to a telephone number connected to a printer or other output device...
. After gaining control of the domain, Cohen produced an advertising-heavy site that received up to 25 million hits a day. From payments for click-throughs and other advertising, Cohen was reportedly making $50,000 to $500,000 per month. Kremen undertook steps to recover the domain, while Cohen claimed he obtained the domain legally from Online Classifieds (OCI). A five-year legal battle ensued, led by cyberlawyer Charles Carreon
Charles Carreon
Charles Carreon is an American trial attorney and former prosecutor known for successfully litigating the Sex.com and RL.com cases. He represents companies in matters pertaining to internet law, and is the founding partner of Online Media Law, a small general practice law firm located in Tucson,...
.
Kremen was victorious in November 2000, when Network Solutions was ordered to return the domain to the plaintiff
Plaintiff
A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...
. According to the record of Kremen v. Cohen, Cohen was ordered to pay $25 million into court; in April 2001, the California District Court awarded Kremen an additional $40 million for lost earnings, for a total judgment of $65 million. Cohen appealed the judgment and refused to allow assessment of his business: He provided false information and declared most of his companies bankrupt while illegally moving assets out of US jurisdiction. When an arrest warrant
Arrest warrant
An arrest warrant is a warrant issued by and on behalf of the state, which authorizes the arrest and detention of an individual.-Canada:Arrest warrants are issued by a judge or justice of the peace under the Criminal Code of Canada....
was issued, Cohen fled to Mexico. Kremen offered a $50,000 reward for information, but Cohen remained at large while continuing to file appeals that were rejected. In October 2005, Cohen was arrested in Tijuana, Mexico for immigration violations, and was handed over to US authorities.
Cohen was released from custody on December 5, 2006, when Judge Ware
James Ware (judge)
James S. Ware is the chief judge of the U.S. District Court for the Northern District of California and his chambers are in San Francisco, California.- Early life and education :...
determined that "the Court is satisfied that Cohen has provided an accounting of assets to the extent that he is able from jail." Cohen currently is representing himself and provided the Court with an address in Mazatlan, Mexico. As of December 21, 2007, 1,350 documents have been filed in the case.
Highest price paid for domain
Sex.com was reportedly sold to Escom LLC in January 2006. At a reported $14 million price, the domain name had widely been cited as the highest priced domain sale.On February 18, 2010, the domain name was ordered to be sold at a foreclosure auction. On March 18, 2010, a day before the auction, Creditors of Escom, LLC filed an involuntary Chapter 11 bankruptcy petition to prevent a possible loss of value by selling the name at foreclosure. At Mike Mann's request the domain was brought to Sedo
Sedo
Sedo is a domain name and website marketplace and domain parking provider based in Cambridge, Massachusetts and Cologne, Germany...
to be auctioned.
On October 20, 2010, Sedo.com, reportedly completed the auction, by filing in a California court that it had approved the sale for $17 million to a Clover Holdings LTD. A bankruptcy hearing on October 27, 2010 will determine if the sale is finalized and approved by all debtors. On November 18, 2010, Sedo confirmed the new sale price in a press release, and marked the previous sale at $11.5 million, negating the claimed 17 million buying price published in 2006.
External links
- Sex.com (Commercial website). The website that is the subject of this article.
- Sexdotcom.com (Commercial website). Promotional website for the book Sex.com, which covers the legal dispute over sex.com.
- The Sex.Com Chronicles (Commercial website). Promotional website for The Sex.Com Chronicles, which tells the complete story of Kremen v. Cohen.