How Did Stephen Cohen Steal the Domain Sex.com?

TL;DR

Stephen Cohen stole the domain sex.com in 1995 by forging a letter that tricked Network Solutions into transferring ownership from its rightful owner, Gary Kremen. Cohen used the domain to create a profitable subscription porn website and engaged in various lawsuits until Kremen eventually reclaimed the domain, although Cohen never paid the $65 million damages ordered by the court.

Transcript

In 1983, Paul Mockapetris proposed a distributed database of internet name and address pairs, now known as the Domain Name System (DNS). This is essentially a distributed “phone book” linking a domain’s name to its address, allowing you to type in something like todayifoundout.com instead of the IP address of the website. The distributed version of... Read More

Key Insights

• 🥳 The sex.com heist highlights the early Wild West days of the internet when domain names were undervalued and vulnerable to theft.
• 😖 Prior to the stolen domain, Gary Kremen founded Match.com, which became highly successful but was sold for a fraction of its worth due to mismanagement.
• 👮 The case resulted in a landmark legal ruling, extending the protection of real property laws to domain names.
• 😀 Stephen Cohen's numerous fraudulent activities and ability to exploit the legal system highlight the challenges faced by those seeking restitution in complicated cases.

Questions & Answers

Q: How did Stephen Cohen manage to steal the sex.com domain?

Cohen forged a letter from the president of Gary Kremen's company, relinquishing all rights to sex.com. With Network Solutions' remarkable credulity, they transferred ownership to Cohen's company without verifying the authenticity of the letter.

Q: How much money did Stephen Cohen make from sex.com?

According to Cohen's claims, he earned around $225 million per year from the subscription porn website and additional revenue from advertising. However, the actual amount remains uncertain due to Cohen's refusal to share financial records.

Q: Did Gary Kremen eventually regain ownership of sex.com?

Yes, after years of legal battles, Kremen successfully sued Cohen and regained ownership of sex.com. The court ordered Cohen to pay $65 million, but he claimed poverty and failed to fulfill the restitution.

Q: Were there any legal consequences for Stephen Cohen?

Cohen was arrested for violating immigration laws in Mexico, but the court struggle over restitution from the sex.com heist is still ongoing. Cohen attempted to evade payment, but various assets linked to him have been frozen.

Summary & Key Takeaways

• In 1995, Stephen Cohen forged a letter and tricked Network Solutions into transferring ownership of the domain name sex.com to his company, Sporting Houses Management, without the knowledge or authorization of its rightful owner, Gary Kremen.

• Cohen used sex.com to run a highly lucrative subscription porn website and engage in trademark infringement lawsuits against others using related terms.

• After years of legal battles, Kremen eventually regained ownership of sex.com, but Cohen claimed poverty and failed to pay the owed $65 million in damages.