SexToys247.com Domain Name Ordered Transferred

AUCKLAND — The registered owner of SexToys247.com, charged with "cyberflying" the domain name in a scheme to drive up its purchase price, was ordered last month to give it up to Melbourne-based 365 Enterprises Pty. Ltd., which operates the online sex toy store SexToys247.com.au.

365 Enterprises argued in the case that a competing online company, AdultShop.com, and a company official of the site, colluded with the registered owner of SexToys247.com, shifting registration names for the disputed domain name — a technique commonly known as "cyberflying."

The reason for the cyberflying, 365 Enterprises said in the complaint, was to find a way to make money selling off the SexToys247.com domain name despite the fact it holds two trademarks — one in Australia and another in the U.S. — for the brand "SexToys247" used in conjunction with the sale of sex toys and novelties.

365 Enterprises said its SexToys247.com.au website is a cash cow, grossing more than $5 million each year. The site was launched in 2010 and that it spends $20,000 a month on radio advertising.

Last year company officials said that they received a message last year from a man who was selling the domain SexToys247.com and that he was approached by one of its rivals in Australia to buy it.

The rival turned out to be AdultShop.com, a direct competitor operated by Malcolm Day that is also based in Australia.

365 Enterprises said that the man asked for a bid of $9,000 for the domain name to "blast their offer out of the water."

But the company declined the offer, citing that it already had marks for the brand name, and later learned that the domain was transferred to an AdultShop IT manager, the complaint said.

"Once the domain name had been purchased by respondent, it then redirected it to AdultShop.com in an attempt to unlawfully trade off complainant’s goodwill in order to misdirect Internet visitors looking for complainant," the complaint said.

After correspondence between counsel for both parties went nowhere, AdultShop's Day advised 365 Enterprises that he had sold the domain name to an unrelated third party, David Gregory, who later said he was willing to sell the domain name for $25,000.

"[365 Enterprises] contends that [Gregory] is not a party unrelated to AdultShop, as according to his LinkedIn page he is a known associate of AdultShop and a former employee, as well as a friend of AdultShop's managing director, Malcolm Day, as shown on [Gregory's] Facebook page," the complaint said.

"[Gregory] knew, or ought to have known (given his well-recorded involvement in the same business), of [365 Enterprises'] marks, domain name, and reputation, and accordingly ... has registered the domain name in bad faith in an attempted cyberflying scheme, or as a cybersquatter on his own account," the complaint said.

The arbitrator agreed with 365 Enterprises in the case, ruling that Gregory registered the domain in bad faith, that he could not adequately rebut a presumption that he worked in conjunction with third-parties to acquire the domain, and that he had full knowledge of trademark rights with the SexToys247 mark.

"[O]n the face of it, respondent made an exorbitant demand for the purchase of the domain name, a practice which has been found to demonstrate bad faith," the arbitrator wrote.

Last month, the domain was transferred to 365 Enterprises.

View UDRP ruling

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Electric Novelties Debuts New 'Gemsations' Anal Plug Collection

Electric Novelties has introduced its Gemsations line of anal plugs in silicone and metal options.

FSC Publishes Analysis of Federal Trade Commission Event Promoting AV

Free Speech Coalition (FSC) has published an analysis of a Federal Trade Commission (FTC) event held this week that promoted age verification among other forms of speech regulation.

Adam & Eve Reveals Results of 'Happy Ending Dream' Survey

Adam & Eve has released the results of a survey asking respondents if they have ever had a sex dream with a happy ending.

GirlsDoPorn Owner Michael Pratt Pleads Guilty to Sex Trafficking

Michael Pratt, former owner of the rogue website GirlsDoPorn, pleaded guilty in the U.S. District Court for the Southern District of California on Thursday to sex trafficking and conspiracy to commit sex trafficking charges, according to a report by City News Service.

Master Nico Relaunches Site Through YourPaysitePartner

Master Nico has relaunched his official website through YourPaysitePartner (YPP).

Kheper Releases New 'Drink if... Taboo Version' Party Game

Kheper Games has released its new "Drink if… Taboo Version" party game.

Federal Judge Grants Partial Halt of Florida AV Law

The United States District Court for the Northern District of Florida, Tallahassee Division, has granted a preliminary injunction against HB 3, the state's age verification law, as a lawsuit filed by two online trade associations challenging the law makes its way through the courts.

Aneros Debuts 'Eupho Syn V' From 'Vibration Collection'

Aneros has introduced the Eupho Syn V from its Vibration Collection.

Wells Apparel Group Inks Distro Deal With Kix'ies

Wells Apparel Group has signed a deal with Kix’ies, Inc. for distribution throughout 13 states.

Ohdoki Debuts 2 New Strokers

Ohdoki has introduced two new stroker sleeves.

Show More