Feeds

RegisterFly fire sale at hand?

Offer for beleaguered registrar

Secure remote control for conventional and virtual desktops

Could troubled domain registrar RegisterFly be up for sale?

The Register has seen a copy of a letter of intent from Cogit, a technology-focused consulting group based in New Jersey, offering to buy out RegisterFly’s CEO and sole shareholder Kevin Medina for $1.15 mil. Whether or not Medina has indicated any interest in selling is another matter, and there is a continuing cloud of litigation over the struggling company that could hamper any attempted sale.

A federal court in California recently ordered RegisterFly to turn over all its registrant data to ICANN, the California nonprofit responsible for the accreditation of domain registrars worldwide. ICANN and RegisterFly are involved in an ongoing dispute over whether or not RegisterFly has lived up to the terms of its registrar agreement. ICANN recently revoked RegisterFly’s accreditation in response to an avalanche of customer complaints, and the two parties are currently in arbitration over RegisterFly’s status.

The letter of intent makes the sale contingent on Medina personally assuming liability for the company’s debts and liabilities, giving the Cogit Group a fresh start as owner. Paragraph 5 of the letter states: “Buyer shall not be obligated to assume any debts or liabilities of the Company.” Medina lives in Florida, which allows an unlimited asset exemption for equity in a primary residence; one can only assume that under this scenario Medina would be looking into bankruptcy protection, and $1.15 mil would be enough for a nice residential property, even in Miami Beach.

As of publication, calls to Cogit seeking comment had not been returned.

All of this could well be halted by court order, but sale of the registrar might not be such a bad thing for RegisterFly’s long-suffering customers. It could inject some welcome professionalism into the operation of the woefully mismanaged company, and possibly prevent its complete dissolution. Of course, the deal would have to move fast - the company would be worth less after it loses its accreditation, if that is the direction the arbitrator chooses to go. Ironically, it would also provide backdoor accreditation to yet another owner after ICANN has publicly cited accreditation through purchase as a principal cause of the RegisterFly debacle.

The Register has been somewhat skeptical of that assertion - it seems self-serving of ICANN to claim that if only it could have rejected RegisterFly’s application in the first place this would never have happened, when it took ICANN over a year to address the problem in any meaningful way, and even then only grudgingly after scathing public criticism. More meaningful reform would be to allow registrants to sue registrars individually as third party beneficiaries of ICANN’s Registrar Accreditation Agreement (RAA). That, combined with a stronger RAA, would provide the protection that registrants deserve.®

Burke Hansen, attorney at large, heads a San Francisco law office

Choosing a cloud hosting partner with confidence

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.