Company doesn’t want to provide accounting information to Verisign.
Web.com is fighting back against a Verisign request for more information about how the registrar accounted for .xyz domain name registrations.
Verisign is suing .XYZ for false advertising after .XYZ boasted about its registration volume — which Verisign alleges was inflated by a Network Solutions giveaway. Web.com owns Network Solutions, which gave away hundreds of thousands of .xyz domain names to its customers.
At issue appears to be an agreement by .XYZ to pay Network Solutions for advertising at the same time the registrar was giving away free .xyz domain names.
According to Web.com counsel (pdf), it’s none of Verisign’s business how it accounted for the free domains on its books.
Web.com, which is not a party to the lawsuit, already allowed Verisign to interview its COO Jason Teichman about the matter.
But, according to Web.com, Verisign increased the scope of its subpoena just two business days before it interviewed Teichman. Web.com says that Verisign’s move to add seven topics was “blatant bait and switch”. Its attorney also said that it informed Verisign prior to the interview that Teichman might not have knowledge of the additional topics.
In its opposition filing, Web.com also states “Verisign’s gamesmanship is particularly inappropriate given the glaring lack of relevance of the testimony sought.”
It’s one thing to question how .XYZ accounted for the free registrations, it argues, but it’s completely irrelevant how Web.com accounted for them on its books.
Web.com also points out something I mentioned previously, about how Verisign is ruffling the feathers of one of its biggest customers:
…the entire inquiry smacks of an illegitimate effort by Verisign—one of Web.com’s most significant business partners—to acquire useful competitive intelligence into Web.com’s business.
At a time when Verisign is seeing spun-domain shelf space taken over by new TLDs, is it really smart to upset domain name registrars?
The Verisign vs. .XYZ trial is scheduled for early November.