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The internet’s most notorious domain name, Sex.com, represents a remarkable tale of digital entrepreneurship, fraud, and legal battles that would become legendary in the early days of the World Wide Web. Registered in May 1994 by Gary Kremen, the entrepreneur behind Match.com, this domain would become the centerpiece of one of the most extraordinary legal disputes in internet history.
The Original Registration
When Kremen first registered Sex.com, the internet was still in its infancy. Domain name registration was a rudimentary process, essentially operating on a “first come, first served” basis. Kremen, a visionary entrepreneur, recognized the potential value of generic domain names and strategically acquired several, including Sex.com, Jobs.com, and Housing.com.
The Audacious Theft
In a stunning turn of events, Stephen M. Cohen, a high school dropout and accomplished con artist, would dramatically alter the domain’s trajectory. In late 1995, Cohen managed to fraudulently persuade Network Solutions to transfer the domain name to him through a series of manipulative tactics. Some reports suggest he may have even exploited a personal relationship with a Network Solutions employee to accomplish this theft.
A Lucrative Digital Real Estate
Cohen’s acquisition of Sex.com was immensely profitable. During an era before sophisticated search engines, users would frequently type domain names directly into their browsers. Sex.com was generating between 50,000 to 500,000 monthly through advertising and click-through revenues. The site was receiving up to 25 million hits per day, making it an incredibly valuable piece of digital real estate.
The Legal Battle
What followed was a five-year legal battle that would set important precedents in internet law. Kremen was determined to reclaim his domain, launching a comprehensive legal assault against Cohen. The case was complex and groundbreaking, essentially arguing that:
- Domain names constitute a form of property
- Intangible assets can be "converted" or stolen
- Fraudulent transfer of digital assets is a serious legal offense
The Judgment
In a landmark ruling, Kremen was ultimately victorious. In November 2000, Network Solutions was ordered to return the domain to Kremen. The subsequent judgment was even more remarkable: Cohen was ordered to pay 65 million in damages</strong>. This included 40 million in compensatory damages and $25 million in punitive damages.
The Aftermath
Cohen’s response was typical of his character. He fled to Mexico, attempted to hide assets, and continued to fight the judgment through multiple appeals. An arrest warrant was issued, and a $50,000 reward was offered for information leading to his capture. In October 2005, he was finally arrested in Tijuana and extradited to the United States.
🌐 Note: The Sex.com saga became a cautionary tale about early internet domain ownership and the importance of robust digital property rights.
Today, Sex.com continues to exist, having been sold multiple times. In 2010, it was purchased by Clover Holdings LTD for approximately $13 million. The site now operates as a content-sharing platform for adult entertainment, seeing around 1.8 million visits daily.
Who originally registered Sex.com?
+Gary Kremen, the founder of Match.com, originally registered Sex.com in May 1994.
How did Stephen Cohen steal the domain?
+Cohen fraudulently convinced a Network Solutions employee to transfer the domain by submitting fake documentation and potentially exploiting a personal relationship.
What was the final outcome of the legal battle?
+Kremen won the legal battle, with Cohen ordered to pay $65 million in damages. The case established important legal precedents about digital property rights.