Thank you to John N. who posted a very insightful comment. I agree with you that it certainly takes time, money and foresight to figure out which generic domain names to buy. However, there is still something about it that feels slimy. If someone buys a “generic” domain name for any other purpose than the fact that they want to use it, the only other reason they buy it is because they have the hope someone else will want it. My thought is, why not just let the person have the name instead of buying it yourself so you know you can make a quick buck off of the person who eventually will really need to buy it. I think I have a problem with the intent there.
Of course it isn’t really a legal issue, which is why this blog is called ”The Not So Legal Show” because I think it is important to examine the not so legal side of certain issues like this one. So of course, yes, it is legal for people to buy generic domain names and perhaps could be seen as a smart business move by some but the intent around this scenario feels quite different than someone buying real estate. When people buy real estate, there is certainly a thought there to sell it to someone else. However, when the “buyer” buys it from the seller, it isn’t because they “forgot” to buy it and now they are in a jam so they will offer up whatever they can. Buying real estate is a conscious choice all around and while some sellers are certainly out to gouge a buyer, there are also sellers who just want to sell their house and make a good deal.
When it comes to domain names, I just think there is an intentional thought process behind the generic domain name buyer who knows he/she is going to catch someone in a bind and they can take advantage of that monetarily. I am not a fan of that type of thought process.
The comment was great and thought provoking so I thank you for that!
Let's make the law entertaining, shall we? 
May 24th, 2008 at 2:48 pm
I found your blog on MSN Search. Nice writing. I will check back to read more.
Eric Hundin
May 26th, 2008 at 12:10 am
aGREED with your blog about domain swindlers.
May 28th, 2008 at 10:15 pm
Stephanie,
I don’t concur with your take on domain dealers. It’s absolutely legitimate biz as long as you are not cybersquatting or infringing on trademarked names. Perhaps you need more enlightenment on how domain industry works. It seems this is not your area of the specialization though. I think you can learn one or two things from some smart-entrepreneurs who are building legitimate internet real estates. Check out http://www.Domaining.com , you’d see blogs of many guys who breathe and live buying and flipping domains.
May 29th, 2008 at 12:08 pm
unmorality says : I absolutely agree with this !