ummm.....maybe it is my lack of understanding but why is this horrible for the domain industry?
Start at post 4.
It is a matter of circumventing the standards.
This is nothing new. But that letter that Acro posted which indicates a telephone call had taken place is certainly a new twist.
You have to keep in mind that many of these entities that would be losing their domain name are not your standard domainers.
They are businesses that rely on someone to do this domaining and website building.
That is more or less how I got involved in domains. Working at an ad agency, I was the creative director.
I regged perhaps 160 domains for a NASCAR client. We (the client and our firm) did not know much about the business of domains. We simply regged every one that was being considered as a possible business and site name.
This was late 80, early 90's - can't really recall.
But we did do a tremendous amount of the legal stuff also with TM, SM, and so on. Our firm had a law group that we worked with. Sitting in on these meetings was great as I learned a lot of TM and international trade.
Big client was RJ Reynolds.
Anyways, someone is simply taking advantage of the potential naive business. Giving them a song and dance routine about how they can save the day.