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You might think that, obviously, both registrations stick.I actually thought that one of the two registrations would be denied.
The only (barely) sane way I see how a registrar could offer both 2nd and 3rd level domains at the same time would be to keep them entirely separate:
Maintain two lists: One is a list of ordinary 2nd level domains that were directly sold, say something like whatsina.name.
The other would be a list of "commons" 2nd level domains that cannot be sold, because people own individual 3rd level domains on it, like doe.name above.
Which domain belongs to which list would realistically be first-come first-serve: If Jane Doe got there first and purchased doe.name, it would become a directly sold domain, and John Doe's (and also Jack Doe's) registration requests for john.doe.name and jack.doe.name would be denied.
Conversely, if John Doe got his registration for john.doe.name through first, doe.name would become a "commons" domain and Jane Doe's request would be denied, but Jack Doe's request for jack.doe.name would still get through.
Though I guess management at registrars doesn't like the phrase "cannot be sold" so I guess that wasn't how it was handled?
I actually thought that one of the two registrations would be denied.
The only (barely) sane way I see how a registrar could offer both 2nd and 3rd level domains at the same time would be to keep them entirely separate:
Maintain two lists: One is a list of ordinary 2nd level domains that were directly sold, say something like whatsina.name.
The other would be a list of "commons" 2nd level domains that cannot be sold, because people own individual 3rd level domains on it, like doe.name above.
Which domain belongs to which list would realistically be first-come first-serve: If Jane Doe got there first and purchased doe.name, it would become a directly sold domain, and John Doe's (and also Jack Doe's) registration requests for john.doe.name and jack.doe.name would be denied.
Conversely, if John Doe got his registration for john.doe.name through first, doe.name would become a "commons" domain and Jane Doe's request would be denied, but Jack Doe's request for jack.doe.name would still get through.
Though I guess management at registrars doesn't like the phrase "cannot be sold" so I guess that wasn't how it was handled?