Domain name theft could become a felony

Even though domain theft has occurred for years, it has never been treated as a criminal offense until now.

The $160,000 domain name P2P.com was allegedly stolen in 2006 by Daniel Gonclaves, a 25-year old computer tech from New Jersey. Gonclaves then sold the domain on eBay for $110,000 to professional basketball player Mark Madsen. Gonclaves claimed he had purchased the domain for $1,500 from its owners Albert and Lesli Angel.

After it had initially dropped the case, the New Jersey District Attorney and State Police Cybercrimes Unit determined the domain's theft was an indictable offense and arrested Gonclaves. In the years between Gonclaves' theft and arrest, the Angels pursued a civil suit in Florida courts.

A New Jersey State Police spokesman told the Associated Press that Gonclaves was charged with three counts of felony theft: identity, computer, and "theft by unlawful taking or deception." Each count carries a maximum 10-year prison sentence.

Gonclaves posted a $60,000 bond and was freed from police custody, but he faces at least two cases where New Jersey prosecutors seek a felony conviction.