Future Computing Solutions Sues dotTV, Saying It Accepted, then Reneged on Bid for Domain Name; Golf.tv: Conflicting Claims to an Internet Domain Name.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Sept. 8, 2000

In a lawsuit filed in Los Angeles Superior Court, Central District, Pasadena-based dotTV, an Internet services company, has been charged with accepting and then wrongfully rejecting a bid for the domain name "Golf.tv" by Future Computing Solutions. The South Korean based firm maintains in its complaint that it successfully bid for the domain name in an online auction, but subsequently was told by the defendant company that "we have decided to release you from your bid."

Through its own Web site, dotTV sells most of the ".tv" domain names on a first-come, first-served basis, for an initial annual registration fee of $100. Other common, generic terms it deems to have broader commercial appeal with greater demand are put up for auction through the same Internet Web site dotTV maintains.

The complaint alleges that on or about May 25, 2000, the head of Future Computing Solutions, Je Ho Lim, was notified by dotTV that his bid for the "Golf.tv" domain registration for the sum of $1,010 was successful. Shortly thereafter, the suit charges, dotTV attempted to renege upon its agreement, notifying the plaintiff that he should "disregard" the acceptance notification, blaming "an email error that occurred."

"Shortly thereafter," said Richard D. Farkas, attorney for the plaintiff, "dotTV publicly offered the `Golf.tv' domain name again, both to my client and others, this time with an opening bid of $1 million. Meanwhile, a recent press report indicated an anonymous buyer had purchased the domain name for $600,000. "If this proves to be true," said Farkas, "the motives of the parties will have to be given careful examination."

"Mr. Lim made a successful bid for the domain name, authorizing his credit card payment as specified by dotTV," Farkas maintained. Defendant dotTV sent, by e-mail, a confirmation of Plaintiff's successful bid, captioned "E-MAIL INVOICE FOR DOMAIN REGISTRATION" with the subject line "congratulations from dotTV." "To then reject the Plaintiff's successful bid for the domain name based upon a unilateral claim of mistake constitutes a breach of contract, and entitles the plaintiff to legal relief under a variety of causes of action," Farkas said.

The Los Angeles-based attorney said Future Computing Solutions demanded that all right, title and interest to the "Golf.tv" domain name be immediately given to it, and that dotTV not attempt to offer it to others. But dotTV refused, said Farkas, claiming that "the reserve price on the auction had not been met," and that the plaintiff was "trying to capitalize on a technical error that occurred in our system." The court action also seeks injunctive relief and unspecified monetary compensation.

"The number of computers linked to the Web is expected to surpass over 200 million by the end of the year 2000," Farkas noted. "The number of Web `sites' or `home pages' on the Web has increased correspondingly. It's a rich and fertile site for commerce, and it needs to be regulated and guided by the same principles of law as are applied in other areas of commercial transactions."