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VeriSign Sued Over Site Finder

Domain name registrar accused of stealing Web traffic.

Joris Evers, IDG News Service

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An Internet search company has sued VeriSign over a widely-criticized service that sends Web users to a VeriSign search page after entering a non-existent Web address.

Popular Enterprises of Orlando, operator of the Netster.com search site, is seeking an injunction barring VeriSign from running the Site Finder as well as damages of up to $100 million, it said in a statement Thursday.

VeriSign controls the main database of .com and .net domain names. On Monday the Mountain View, California, company added a "wild card" to the databases, sending Web users who enter a non-existent .com or .net address to Site Finder, a new VeriSign search service.

Bad Business?

Popular Enterprises accuses VeriSign of antitrust violations, unfair competition, and violations of the Unfair Trade Practices Act, according to the statement. The suit was filed Thursday in U.S District Court for the Middle District of Florida.

Besides offering a search Web site, Netster also offers a search toolbar product called SmartBrowse that helps users after they enter a non-existent domain. VeriSign has now "hijacked" that traffic, according to Popular Enterprises.

"They are using the whole universe of unregistered domains as their own profit pool and are scooping up all that business by no effort of their own, just by virtue of their position," said Chris Hill, a partner at Scarborough and Rugh in Orlando, which represents Popular Enterprises.

Under Fire

VeriSign's Site Finder has drawn a storm of criticism and caused some antispam filters to malfunction. Uproar among network administrators prompted the Internet Software Consortium to update its popular BIND DNS software so Site Finder can be blocked.

Popular Enterprises expects to serve VeriSign with the suit on Friday, Hill said.

VeriSign said it could not comment on the suit because it has not yet received it. However, spokesperson Brian O'Shaughnessy did say that although VeriSign has no intention of pulling the Site Finder service, the company is actively engaging with the industry to listen to what the issues and concerns are and improve the service.

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