MobilePhones.co.uk and now another high profile Sedo seller default...

[ANY-Web]

Spare a thought for the guys at Sedo!

Many will remember the auction of MobilePhones.co.uk, where the seller is in default and things are now going legal
http://www.acorndomains.co.uk/sold-domains/66489-mobilephones-co-uk-91k-bargain.html
(Unfortunately I cannot comment more about this case at the moment)

Now there is another story of a high profile seller default at Sedo:
http://www.thedomains.com/2010/06/03/seller-defaults-in-sedo-com-auction-of-7-domains-for-a-total-of-almost-200k/
involving the domains:

bankruptcylawyers.com
trademarklawyer.com
immigrationattorney.com
criminalattorneys.com
duilawyers.com
taxattorneys.com
bankruptcylawyers.net

The legal department at Sedo are on the case with MobilePhones.co.uk
But it is high time that this kind of behaviour on the part of sellers (and buyers) were stamped out and vigorously pursued.

Time also to place domain names into administrative control of the auction house before an auction can take place.

 

[rob]

Very good comment (not by me!) on that second story:

"Dont blame the seller. Blame SEDO.
Sedo built a culture of allowing sellers to default. We’ve been involved in several such cases over the years and SEDO has done nothing about it."


+1

 

[retired_member12]

I really can't see that this has legs to be honest. The seller still has their domain name, where is the big loss?

I'm not fussed on Sedo, but I don't know if the seller is living under some big hope, I hope not for their sake!

 

[Edwin]

I really can't see that this has legs to be honest. The seller still has their domain name, where is the big loss?

The loss is on the buyer's side.

If a seller makes an offer to sell something at X and the offer is accepted, then they break the deal afterwards, the buyer's out of pocket the domain name. It's no good arguing that no money changed hands, a legal contract was still formed under Sedo's T&C that compels the seller to sell at the price that was reached at auction end.

When the seller breaks that contract, the buyer has every right to resort to the law to enforce the deal. (Obviously the buyer values the domain at > their highest bid, otherwise they wouldn't have bid!)

 

[Ellis]

And now ....

Women.com

http://techcrunch.com/2010/06/04/nbc-done-lawsuit/

Sedo seem to having a rough ride at the moment

 

[retired_member12]

The loss is on the buyer's side.

If a seller makes an offer to sell something at X and the offer is accepted, then they break the deal afterwards, the buyer's out of pocket the domain name. It's no good arguing that no money changed hands, a legal contract was still formed under Sedo's T&C that compels the seller to sell at the price that was reached at auction end.

When the seller breaks that contract, the buyer has every right to resort to the law to enforce the deal. (Obviously the buyer values the domain at > their highest bid, otherwise they wouldn't have bid!)

Sedo's Ts & Cs stand a good chance of being thrown out of the equasion simply for lack of past enforcement. As much as you might like to hope that the money not changing hands won't be relevant, I suspect it will be. The best that I suspect will happen will be to see Sedos' system will be seen as wanting!

 

[Edwin]

What's probably going to happen with all the publicity surrounding these cases is the high-value domain owners (high $xxx,xxx and $x,xxx,xxx) will to start giving up on Sedo as a sales venture. Meanwhile, the low value sales that make up 99.9%+ of their sales are likely to continue unaffected.

 

[scooter]

And now ....

Women.com

http://techcrunch.com/2010/06/04/nbc-done-lawsuit/

Sedo seem to having a rough ride at the moment

An agreed sale of $1 million. Good to see it's going to court.
Interestingly, I see they paid Sedo their comission.

.

 

[ANY-Web]

High value domain names on Sedo

What's probably going to happen with all the publicity surrounding these cases is the high-value domain owners (high $xxx,xxx and $x,xxx,xxx) will to start giving up on Sedo as a sales venture. Meanwhile, the low value sales that make up 99.9%+ of their sales are likely to continue unaffected.

Edwin - for once I actually disagree with you.

As the case stands Sedo is fantastic for high-value domain owners.
You get a high-value name into the auction at Sedo, generate lots of buzz and hype (as happened with MobilePhones.co.uk - just look at the views on the Acorn threads about it), you get a decent final auction price - and then you RENEGE on the transfer. Lots of publicity, lots of people registering the name on their radar, lots of increased PPC revenues. And then when all the dust has settled you auction the name again with a different auction house or sell it privately in excess of what it would have gone for at the auction.

Your statement would be true if BUYERS did not perform, in which case the sellers should abandon Sedo. But there seem to be lots of willing buyers out there, who are keen to perform on the contract established by means of an auction.

Sedo have to be seen to enforce vigorously and as a matter of principle their right to the commission they are entitled to as a result of a completed auction. Once their uncompromising stance becomes known the sellers will then think twice before engaging in "domain teasing" auctions.