Music.mobi Auction - How Sedo / MTLD breached their Terms of Service
- By Constantine Giorgio Roussos
- Published 12/8/2007
Sedo / mTLD stated that they could extend the auction that ceased based on their terms of service and conditions. However, 2 parts of their clauses show that they clearly breached their own terms.
Their Terms of Service / Conditions can be found here: http://sedo.com/about/policy.php?page=terms_us&tracked=&partnerid=&language=us
Taking a closer look at Sedo's right to cancel any auction:
5.1.2.5. Sedo’s Right to Cancel Auction
Sedo reserves the right at Sedo’s sole discretion to cancel an Auction Period at any time, if the offered Domain or Web Project infringes the intellectual property rights or other rights of a third party. If the Auction Period is cancelled, any contractual relationship between the Seller and the highest bidder and/or the person who made the last offer before the Auction Period that may have existed will cease.
There is no Intellectual Property violation on generic domain names such as "music" so Sedo can not cancel the winning bid. However, even though I was sent 2 emails proclaiming me the winner as well as given an official Music.mobi Sedo Invoice with instructions to pay the $66,000, my winning bid was canceled in their system and a new auction was initiated
Another important element of the Terms of Service that Sedo violated is clearly stated in their liability section:
5.1.2.7. Liability
Sedo in no way guarantees or further warrants that the web page on which bids can be placed (“Bidding Page”) during the Auction Period is permanently accessible. If a Bidding Page is not accessible, the Seller may not, in the future refer to a potentially higher bid during this time period as a mechanism for not following through with a sale. Furthermore, a potential bidder may not argue, for the same purposes, that he would have been the highest bidder for the Domain up for Auction if the webpage would have been available.
It is obvious that Sedo states that if any technical issues arise with the site during the auction, it holds no ground for disputing the successful bid i.e my end bid that proclaimed me as the winner of music.mobi. In other words, even if there is a technical problem, the winning bid holds.
I have been contacted by Sedo's lawyer Sheri Archidiacono who was very polite on the phone and obviously was seeking to resolve this mess, apologizing to me in numerous occasions. I actually felt a bit bad for her because she was stuck in a situation involving business ethics and her legal obligation as an attorney to do what is best for society. She obviously knows that there has been injustice but she knows the monetary stake here for Sedo and the MTLD. They are risking to lose not only the $611k that I bid to with the new entrant/bidder, but every other profit generated in their second illegal auction. I am sure she is not having a great night's sleep. I am not sure she can pull an O.J Simpson on this one as others have stated.
Justice will be served.
Their Terms of Service / Conditions can be found here: http://sedo.com/about/policy.php?page=terms_us&tracked=&partnerid=&language=us
Taking a closer look at Sedo's right to cancel any auction:
5.1.2.5. Sedo’s Right to Cancel Auction
Sedo reserves the right at Sedo’s sole discretion to cancel an Auction Period at any time, if the offered Domain or Web Project infringes the intellectual property rights or other rights of a third party. If the Auction Period is cancelled, any contractual relationship between the Seller and the highest bidder and/or the person who made the last offer before the Auction Period that may have existed will cease.
There is no Intellectual Property violation on generic domain names such as "music" so Sedo can not cancel the winning bid. However, even though I was sent 2 emails proclaiming me the winner as well as given an official Music.mobi Sedo Invoice with instructions to pay the $66,000, my winning bid was canceled in their system and a new auction was initiated
Another important element of the Terms of Service that Sedo violated is clearly stated in their liability section:
5.1.2.7. Liability
Sedo in no way guarantees or further warrants that the web page on which bids can be placed (“Bidding Page”) during the Auction Period is permanently accessible. If a Bidding Page is not accessible, the Seller may not, in the future refer to a potentially higher bid during this time period as a mechanism for not following through with a sale. Furthermore, a potential bidder may not argue, for the same purposes, that he would have been the highest bidder for the Domain up for Auction if the webpage would have been available.
It is obvious that Sedo states that if any technical issues arise with the site during the auction, it holds no ground for disputing the successful bid i.e my end bid that proclaimed me as the winner of music.mobi. In other words, even if there is a technical problem, the winning bid holds.
I have been contacted by Sedo's lawyer Sheri Archidiacono who was very polite on the phone and obviously was seeking to resolve this mess, apologizing to me in numerous occasions. I actually felt a bit bad for her because she was stuck in a situation involving business ethics and her legal obligation as an attorney to do what is best for society. She obviously knows that there has been injustice but she knows the monetary stake here for Sedo and the MTLD. They are risking to lose not only the $611k that I bid to with the new entrant/bidder, but every other profit generated in their second illegal auction. I am sure she is not having a great night's sleep. I am not sure she can pull an O.J Simpson on this one as others have stated.
Justice will be served.
