First post here - long time lurker that has gotten tired of the other boards that don't talk business anymore.
Jim, I've always read your posts here with great interest as you've given some incredible advice and insight over the years. I was a bit surprised at your stance on the issue considering the overwhelming stance of the adult industry on 2257 inspections on secondary producers. It seems a bit hypocritical to say the government has no right to ask for them, but the registrar does.
I think DirectNic overstepped their boundaries on this issue. While I feel they have every right to tell the individual that they don't care to be their registrar anymore, I don't think they should be locking down a domain and holding it hostage. They should tell him to transfer it out immediately or they will drop it. This leaves them with no liability.
It just seems like a bad road to go down if registrars start taking the law into their own hands. While CP is a major issue, it's an issue that should be dealt with by the authorities. If you receive complaints, you should demand them to transfer the domains and contact the authorities. Playing judge on something that registrars don't have experience in is opening the door to abuse, theft, and witch hunts.
I'm not sure if the posts supporting the decision are posts supporting having registrars be in charge of checking records, or just supporting an old friend.
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