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4 April 2001
Court awards damages of $65 million in sex.com dispute
Out-Law news

Gary Kremen, the man who registered the domain name sex.com in 1994 and lost it the following year in a fraudulent transfer, has been awarded the sum of $65 million in damages by a Californian district court.
Gary Kremen, the man who registered the domain name sex.com in 1994 and lost it the following year in a fraudulent transfer, has been awarded the sum of $65 million in damages by a Californian district court.

Stephen Cohen, an ex-convict, took the name from Kremen by sending a forged letter of transfer to Network Solutions, the domain registrar. Cohen then ran a highly profitable porn portal until November last year when a court awarded Kremen the return of the domain name having found that the forged signature on the letter to Network Solutions misspelled Kremen’s name.

US District Judge James Ware this week ordered Cohen to transfer to Kremen all assets related to the sex.com business, in addition to $40 million in compensatory damages and $25 million in punitive damages. However, Cohen did not appear in court and is the subject of an arrest warrant which will remain in effect until he surrenders all his property to the court in San Jose. He is thought to be residing in Tijuana, Mexico, with his assets tied up in offshore bank accounts.

Kremen is reported as saying that he wants to move sex.com “toward a Maxim magazine model … softer, [with] more context around the content.” He told MSNBC.com, “We’re working on a deal [for content on] … sex education, disease prevention, women’s oriented stuff, stuff that you normally don’t see in the [adult] space. And we’re doing it because we think we can make money at it.

 

 

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