Accredited Australian Internet registrar NetRegistry has upped the ante in its fight with similarly-monikered rival NetRegister, announcing plans to set up an industry-wide legal fund to combat allegedly unscrupulous operators.

Larry Bloch, the CEO of NetRegistry, told ZDNet Australia the company planned to call on other registrars to help set up a legal fund to combat practices he sees as harmful to the domain name industry.

"It is not just the regulators' responsibility, but is all accredited registrars' responsibility to act in an appropriate manner when confronted with the activities like this," he said. "I think the main damage is to NetRegistry in this instance, but clearly it's damage that could be done to anyone of the registrars and in this instance there is damage to the other registrars as well and to the industry as a whole."

Bloch said AusRegistry, accredited registrars and registered resellers needed to act in concert to protect the industry. "I call on all registrars to support the action we've taken in vigorously opposing companies of this ilk, and I'd like to open up a conversation to support a fund to assist individual companies in any legal battle against organisations like this and assist in the rapid education of the consumer."

He said they're not looking for actual funds at the moment as much as pledges of support.

The catalyst for NetRegistry trying to take a leadership role in this issue was an advertisement sent out by a subsidiary of Internet Registry warning domain name holders of the closure of ING and urging them to respond or risk losing their domain name. What rankled NetRegistry executives was the closeness of NetRegister's name to their own.

ZDNet Australia has received e-mail from readers who have received the misleading letters, complaining about the "unconscionable" letter and urging an expose into NetRegistry. A consumer alert from auDA which reveals Internet Registry as the company behind NetRegister has done little to reduce the confusion. NetRegistry points out that previous action taken against Internet Registry has been ineffective, and this time it will deal with the situation.

"We will be very vigorously taking them on through the legal system and running them out of business, that is our objective," said Bloch. It is believed to be the first time action of this sort has been taken by a registrar. Phillip Hourigan, a partner at Deacons law firm in the digital industries group, said there had been threats of legal action before from auDA and the ACCC.

"I think it's probably a first where in Australia there's been direct action by a registrar through legal channels," he said, adding that it wouldn't be the last. "As the registry gets more crowded, the only way to increase market share is by winning business from other registrars, and some companies may push the line."

However, it is yet to be seen whether the industry will support NetRegistry, with one registrar approached by ZDNet Australia flatly refusing to countenance contributing to a legal fund. "We're not prepared to throw money away on something that's not likely to produce a result," a spokesperson said. NetRegistry has said it will go it alone if it has to.

NetRegistry has approached auDA to contribute to the costs of the court case, expected to run into tens of thousands of dollars if it runs its full course, and been refused.

"We are dealing with this company through the courts and at some financial expense to ourselves, and some benefit to the entire industry," said Bloch. "We felt it would be appropriate to expect some recognition from the industry for that role we're playing, in the form of financial support for our action. So we're disappointed that auDA have taken the position that they have."

For its part, auDA is working with the Australian Competition and Consumer Commission (ACCC) in investigating Internet Registry, but says it cannot disclose any details at this time. Every .au domain name incurs an AU$11 levy, which goes to auDA to support a number of functions, including consumer safeguards.

Internet Registry Australia has informed ZDNet Australia it is in talks with lawyers and cannot discuss their plans. It also has failed to answer questions as to whether it is a registered domain name reseller, and if so through which registrar.

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